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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
57. Take a Look for Yourself
If you make use of the knowledge acquired and scrutinize syndicate brochures with an eye on value, you will eliminate quite a few offerings which do not satisfy your requirements. Some investments will appear attractive. You have read the description and looked at pictures of the property.
There is one more thing you must do and we cannot do it for you. Go out and take a look at the property, if at all possible. Even if it is in a different part of the city or 50 miles from your home? Even then.
Would you buy a home for $30,000 or $40,000 without ever looking at it? Obviously not. Your investment in the syndicate is of a similar magnitude. On a $30,000 or $40,000 home, you will probably pay down $10,000. The balance will consist of a mortgage. One cannot generalize, but for every $10,000 invested in a syndicate, there is in most cases a large mortgage commitment. $20,000 to $30,000 mortgage for a $10,000 investment is by no means unusual.
You may think that you don't know a thing about real estate anyhow, and that your going out to take a look at the property won't help. Sorry, you are not excused. There are quite a few interesting things which even a layman can see or find out. Is the building in good repair? Who are the tenants? What is the general appearance of the property? Do tenants stay or is there a large turnover? Are the tenants satisfied with the management? Are there vacancies? How many? For how long have there been vacancies? How many? Why were the vacant apartments or offices not rented? Is the neighborhood improving or deteriorating? How are transportation facilities? How do rents compare with rents of similar buildings in the neighborhood? All these are items of vital importance. All this information can be elicited just by looking and by asking a few questions.
If the syndicate is a business venture, you should ask yourself whether you would be willing to start such a business on that particular location. Is the neighborhood suitable for the business? Is there enough traffic? Is the property easily accessible? Are there sufficient parking facilities? Depending on the venture, many other questions may come to your mind. Ask them, and you will be surprised how many can be answered once you go out to examine the premises.
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