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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
50. Can You Sell Your Unit If You Want "Out" What Price?
We have tried to examine the factors which determine the value of the syndicate and the participating units. Value is relative. You have certainly heard of cases where a person has some valuable property—a painting or ob jet d'art—but cannot find a buyer who wants to pay the price which reflects the true value of the object. There is no ready market for it. Value is often said to be "what a willing buyer would pay to a willing seller."
When we think of the value of an investment of a unit in a real estate syndicate, we must think of it two ways. First, there is the real value of the income-producing investment. Next, there is the value—the price you will receive—if you want to dispose of your investment in a hurry. These two values may not be the same. If you own a unit in a syndicate which in turn owns good real estate, you have probably a good and safe investment of stable value. But what if you must sell it in a hurry? It is not the same as calling your stock broker, getting the quotation on your stock, and giving the order to sell it.
There are firms which sell syndicate participations and who will also try to sell your unit. But you cannot be sure that there will be a ready market for your investment at the time you want to sell. Presently there is no true market for syndicate units similar to the stock market, where you can get immediately the fair and prevailing price for your investment.
Frequently, the consent of the syndicator is required before your buyer may obtain all the rights which you had as a limited partner or a member of the syndicate. Such consent will, in most cases, be readily given. Sometimes a charge is made to make the necessary changes on the books of a syndicate.
At the time of making an investment, you should ask yourself whether in the near future you may have to turn your investment into cash on short notice. If the answer is yes, think again before you buy a unit in a real estate syndicate.
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