How to Make Money with Real Estate Syndicates

Introduction

The real estate syndicate, in its present form, is a new investment medium, not too well understood by the gen­eral public. Potential investors receive a lot of promo­tional literature, but are not told what to look for. The ideal objectives of the investor are always the same: safety of principal combined with high yield, substantial growth and liquidity. Unfortunately, such an ideal investment does not exist. But you would like to know at least to what extent your investment satisfies your major objectives.

The real estate syndicate is unlike any other invest­ment. Business may be good, but you may not receive the addition al profits. Distributions may be maintained at the same level, but your net yield after taxes may decline every year. You may have to pay taxes on money you never received. The growth potential of your investment may be artificially curtailed. Yardsticks which you used to measure the value of other investments will be of little help,because the value and growth potential of your investment in a syndicate is determined largely by the contract which you will have to sign. That contract is a different one for every syndicate and a very complex and complicated legal document. This book will help you to analyze that document.

You cannot invest successfully unless you know how to determine value and growth potential. To our knowl­edge, there is presently no book which enumerates and explains the factors which affect and determine the value of a syndicate investment and how and why such factors affect value. This book was written to fill the gap.

Investment in a Real Estate syndicate differs from in­vestments in other business ventures in one important aspect. At the time of the offering or sale of the syndicate participation, the syndicator will give you detailed pro­jections of distributions for 10 or 20 years or even longer periods.

Since the syndicator is trying to sell you participations in his syndicate, you may be sure that he stresses all the good points as far as income and potential of his particu­lar investment are concerned. So you won't need us to sell you on any syndicate offering.

We do try to assist you in analyzing the brochure, so that you will be able to determine what the projections really mean to you in terms of dollars, in growth, and in risks.

We hope that you will find time to read the whole book. It will be worth your while and will save you dollars. We kept it short. If an idea could be discussed in one paragraph, we did just that. For the busy reader, the book is subdivided into 58 chapters, each one dealing with one important topic.

Once you have read this book, use of the Rating Check List at the end of the book will help you select the syndi­cate participation which is best for you and which meets your objectives of safety, income, and growth. You should consult the Rating Check List every time you plan invest­ing in a syndicate.

If you use the information contained in this book and the rating check list, you should be able to eliminate un­desirable and unprofitable ventures and concentrate on sound ones. We hope this book will help you do just that.

Next: The Syndicate Boom — Risks and Rewards