SYNDICATIONS
When you investor within a private real estate syndication, you are pooling your capital with that of other qualified investors for the purpose of investing in larger and more lucrative real estate projects. This affords the lone investor an opportunity to participate with an organized group of like-minded investors in the ownership of a piece of revenue property that is too much to handle singly or in a joint venture with just one or two others.

Real estate syndicates that own income-generating residential real estate are secured by tangible assets as collateral, the buildings themselves. Investing in private real estate syndications provides the individual investor the ability to achieve extraordinary profits with low risk and (NO LIABILITY FOR DEBT OR LITIGATION). 

By contrast, shares in a private syndicate, typically Real Estate Limited Partnerships are not priced to market on a daily basis and in addition offer the possibility of higher returns than publicly managed real estate. Finally, private syndicates offer some tax savings unavailable when investing in a public company. 

To quote Patrick W. Rice, author of IRA Wealth: “That’s why I consider  the LLC the ultimate investment vehicle for speculative investors who want to increase their retirement funds to the max.”

A public newsletter published by DDO Seidman, LLP, Accountants and Consultants, asserts: The syndication process- aggregating capital from a group of investors to acquire property – is seeing new popularity as real estate increasingly is viewed as a fourth asset class in addition to stocks, bonds and cash. Real Estate Investment Trusts (REITs) are an attractive way to invest in real estate, but their publicly traded shares are subject to a significant degree of price volatility that many investors seek to avoid. 

HOW DOES A SYNDICATION WORK
Basically, the set-up is as follows: A Limited Liability Company, (LLC), is established to allow a group of investors to purchase and control a diverse array of real estate assets. As vacancies are filled and rents increased, so does the income disbursed to the unit holders every quarter.

In addition, each investor is entitled to his or her proportionate shares of the equity that builds up as the values of the properties increase and mortgages are paid down. You also enjoy a separate and completely tax-deferred component of profit: the increase in the value of the property owned by the LLC. Whenever the LLC sells or re-finances any of the properties, the equity increases result in higher unit values, which translate into increased quarterly distribution to unit holder.

TAX ADVANTAGES FOR THE INVESTOR
Regardless of the size of your investment, your marginal tax rate, or whether you pay tax as an employee or business owner, as a unit holder you enjoy favored tax treatment on the income you receive from the LLC.  This means  that individual unit holders are entitled  to the same income benefits and tax deductions that direct owners of real estate enjoy- but without the drawbacks, such as liability for debt and litigation, and responsibility for day-to-day management of the properties.

CAN YOU SELL YOUR SHARE?
Safari Partners IV LLC syndication offers you another benefit; you have redemption rights, which – unlike direct real estate ownership, provide liquidity. To allow for this, the LLC sets aside a prudent amount of cash on a period-by-period basis to buy back units if an investor wishes to have then redeemed.

YEARLY RE-VALUATION CYCLE
Every year, or as required, the properties are re-appraised and a new unit price determined. Based on the new value, the quarterly distribution amount is re-calculated and set for the next 12 month cycle.

SYNDICATION STRUCTURE
Safari Partners syndications are structured with no front end fee. Rather than taking value before adding any, Safari earns its share by increasing the value of your investment. We earn just 15% of the increase we create in net rents and property value (relative to the levels established at the time of purchase). Thus, since our compensation is dependent on our performance, you can be certain that we choose each property very carefully, and that your investment and your returns have our attention at all times.