Would you like
to print a copy of this book to read offline? Click Here to download the printable PDF version |
 |
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
26. How the Syndicate Agreement Affects the Growth Potential of Your Investment
We said that as a business increases in value the part or share which you own will also increase in value. This is ordinarily true in real estate. But if the business agreement were so worded that all or part of the increased earnings were to be withheld from you, your share would of course not go up, even if the earnings of the business will go up.
The same is true for the real estate syndicate. If the agreement, which you will have to sign, is so worded that all or part of the increased earnings are withheld from you so that you do not participate in the full growth of the syndicate, the effect will be two-fold. First your dollar income over the years will not increase or at least not sufficiently to make up for the decline of the dollar's purchasing power. Second, the value of your investment will not increase, because it lacks growth potential.
You may think that you as an investor and co-owner of a building should participate fully in all the advantages of ownership. You may believe that an agreement which deprives you of these advantages is unfair and that they cannot do this to you. It is being done every day. The next chapters tell you how it's done, so that you may spot it in your agreement.
Are You Ready To Move Onto The Next Lesson? Click Here...