Real estate crowdfunding is a deal between a sponsor who sources, develops, and manages a real estate project and a group of investors who provides the funds. Individual investors leverage the power of crowdfunding to partake in massive real estate projects that otherwise they couldn't afford on their own. The sponsor of the deal scouts the property, raises funds, buys, and manages the day-to-day operations while investors provide the bulk of the financial equity. These syndication deals are usually set up as Limited Liability Companies or Limited Partnership with built-in protections for all parties. The sponsor acts as the manager or general partner, with investors playing as limited partners or passive members. Sponsors and investors share profits from either rental income and property sales, or both. The rental income can be distributed periodically as agreed. With time, property values tend to increase, and so does rental income. And if the property is finally sold, investors can earn a hefty profit.