This document outlines the most common transactions affecting real estate syndications.
A real estate syndication is an investment vehicle through which a group of investors pool their resources into a single real estate investment. Below are the most common type of transactions that affect real estate syndications for which accounting support is required.
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Name |
Description |
Example |
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Bank Fees, Bank Credit & Bank Interest |
Fees charged by the bank for normal operations, fees refunded by the bank, and interest received from the bank |
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Dues & Subscriptions |
Payment for different subscriptions |
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Insurance Expense |
Property insurance and loan insurances paid |
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Investment Purchase - Funds, Equity, Direct Real Estate |
Investment corresponding to an ownership interest in a fund
Investment corresponding to purchase of stocks of an entity
Investment corresponding to an ownership interest in a specific property |
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Investment Purchase- Real estate |
Direct purchase of real estate by the fund |
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Investor Contributions (new and additional funds) |
New or additional investor contributions into the fund |
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Mortgage Loan Payments |
Payments made against a mortgage loan taken out by the fund or entity |
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Professional fees - Legal |
Costs incurred in availing legal services |
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Property Management Fees |
Fees paid to the property manager for managing the property |
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Rental Expense |
Rental expenses incurred by the fund |
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Rental Income |
Rental income earned by the fund |
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Taxes - Property |
Taxes levied on real property, primarily upon Land and Buildings |
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Taxes - State, Penalties, Interest |
Taxes due to the local government
Payment due to failure to pay taxes
Interest on delayed payments of taxes |