There are two parts in a syndication.
The General Partnership is comprised of the operators. They find the deals, manage the asset, personally guarantee the loan, manage all the accounting, tax and distribution of profits, and they manage the property, the operation and the entirety of the project from beginning to end.
The Limited Partnership is comprised of the passive or active partners whose liability is limited through the protections of the legal entity set up to hold the real estate. The limited partner typically invests capital for an agreed upon split of the equity and profit. Their role is usually passive and they are taxed as passive equity investors.
What is syndication?
Syndication is defined as "the pooling of resources and knowledge for a common cause."
In Real Estate, it is referring to the pooling of knowledge, experience and capital to purchase and profit from an investment property. Almost every piece of commercial, industrial and large multifamily real estate is not owned by one single individual, rather a group of people who have pooled their resources to achieve a result that is greater than the sum of their parts.