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01. This Book
02. Syndicate Boom
03. Get Information
04. Syndicator
05. How much?
06. Depreciation
07. Depreciation Applied
08. Declining Balance
09. Straight Line
10. Paying Taxes
11. Pay Mortgage
12. Income Taxes
13. Paper Loss
14. Tax Shelter
15. Rent?
16. Syndicator Units
17. Wear + Tear
18. Lease-Hold
19. Building
20. Comparison
21. Specialized Properties
22. Growth
23. Leverage
24. Share Growth
25. Why + How
26. Syndicate Agreement
27. Net Lease
28. Long-term Lease
29. No Guarantee
30. Inflation Clauses
31. "Inflation Clause" Works
32. Inflation Clause?
33. Mortgage Due
34. Interest Rates
35. Short Term Mortgage
36. Good Mortgages
37. Refinancing
38. Refinancing Clauses
39. Share of Mortgage
40. Share of Profit
41. Purchase Options
42. How Purchase Options
43. Stunt the Growth
44. "Subordination"
45. Long Term Lease
46. Business Organizations
47. Syndicate Debts?
48. Management
49. Your Consent?
50. Sell Your Unit
51. Investment Trust?
52. Business Syndicate
53. Multiple Properties
54. Dream or Reality?
55. Syndicator's Background
56. Value of Guarantees
57. Look for Yourself
58. Conclusion
Resources
2. The Syndicate Boom — Risks and Rewards
The real estate syndicate is a pooling of resources of many investors to buy a building or long-term lease-hold. When you buy an interest or participation in a real estate syndicate, you buy a part of a building or the lease-hold.
The real estate syndicate with large public participation is about 10 years old. It sure is big business now. Forbes Magazine estimate that in 1958-1959 3 billion dollars worth of public participations in syndicates were sold.
There must be good reasons for this success and there are. Investors are promised and get substantial returns such as 10%, 12% or more per year, part of it tax sheltered. Good syndications offer a reasonable degree of security. Many investors have been rewarded with substantial income and even growth of their equity. But others have lost money.
Every day new syndicates are springing up and new participations are offered. As real estate prices go up, it is harder to find real estate which represents a conservative investment and offers a good yield. As a consequence, some of the deals now being offered are highly speculative.
Are you going to invest in a syndicate that will continue to make payments in 10 or 15 years from now and perhaps increase its payments? Or are you going to invest in a loser? The answer is simple: know what you buy. Our problem then is to get the facts on which to make a decision. Where and how do you get that information?
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