The Blue Book of Real Estate Syndication.pdf

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bluebook.pdf
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Dear Investor,
It has been said that, those who wish to invest wisely invariably turn to real estate to realize all of their
dreams.
How true.
It is also widely known that more millionaires have been created in the medium of real estate investing than in
any other. What is far less well known however, is that by participating in larger real estate ‘deals’ rather than
smaller ones, more money can be made, more quickly, and with nearly the same level of effort—or, if one is
truly wise, with no effort at all .
A person in the business of creating large real estate developments has much to do: locate and investigate the
property, conduct feasibility studies, consult with architects and tradesmen, design floor plans, visit city hall,
meet with councillors to obtain special permission for variances to local by-laws, employ salesmen to offer the
newly built or redeveloped properties, and a myriad of other tasks. -- Much to do for sure, but certainly not so
much as to prevent an experienced professional, with a team of talented and able men and women, from
accomplishing the goal and collecting the profits over and over again.
On the other hand, a person who invests in large real estate developments can gain substantial returns on
their money without doing one thing more than putting pen to paper. (Certainly, a wiser person than the first,
some might say.)
We at Pratten Properties are the first person, and we invite you to invest the next few moments of your time
studying this material to determine if you are to be the second.
That said, I am pleased to introduce you to our organization and our latest syndication opportunity: Namely, an
exclusive investment offering between 15 to 25% R.O.I. with a range of unique tax-sheltering possibilities.
In the accompanying booklet, we have been sure to include all the information that we would want to know
were it our first time considering partnering in a venture such as this. It has been written plainly and with a
minimum of distraction so that the investment opportunity described in its pages will be clearly understood,
and stand on its own merits. When you are ready, click this link to download the Executive Summary for our
current syndication project. When you have finished reading this informative manual in its entirety, please feel
free to contact me personally to answer any questions and to provide you with specific details on our latest
syndicated project.
Thank you for your consideration, and best wishes for your financial future.
Sincerely,
A LAN G. P RATTEN
President and CEO
4520 West Saanich Road, Victoria, BC V8Z 3G4 • www.PrattenProperties.com • Tel: (250) 479-7732 • Fax: (250) 380-7425
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Blue Book
of
Real Estate Syndication
Presented by:
Pratten Properties
Copy #
________ of ________
Written and Prepared by:
Emanuel Furtado Arruda
The
 
IMPORTANT NOTE:
The statements herein are based on information which we believe
to be reliable at the time of publication, but we cannot represent
that they are complete or accurate. This booklet is for
informational purposes only and shall not constitute an offer to
sell or a solicitation to buy any securities.
Important and specific information about a particular investment
will be set out in the applicable Offering Document. You should
obtain and read the Offering Document before making your
investment decision.
No offering will be presented except in accordance with the
governing securities laws.
All rights reserved
including the right of reproduction
in whole or in part in any form
No part of this publication or any derivation thereof
may be reproduced or distributed in any form or by any means,
or stored in a database or retrieval system without the prior
written permission of the publishers
© 2004 Pratten Properties
All rights reserved and vigorously defended.
5.13.2005
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CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1
The Importance of Owning Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
A Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
Bigger Buildings Bigger Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
Barriers? What Barriers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
Smaller Investments Big Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Private Syndications: The Vehicle of Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04
Limited Partnerships: One Form of Group Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . 05
Tax Benefits for the Investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Selling Your Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
How to Choose the Right Syndicate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06
Why Consider Group Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
Choosing Your Investment Leader . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
8 Key Benefits of Private Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09
4 Big Reasons to Syndicate with Pratten Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3
10 Things You Need to Know about Pratten Properties . . . . . . . . . . . . . . . . . . . . . . . . . 1 6
The Team Leaders—Proven Real Estate Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3
The Game Plan—How we run our Syndications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3
• Our Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4
• Our Corporate Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4
• Our Acquisition Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4
• Our Investment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
• Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 6
Risks and Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
• Internal Control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 7
• Property Investment and Management Risk Controls . . . . . . . . . . . . . . . . . . . . . 38
• Property Development Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
• Taxation Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
• Management Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
• Financing Risk Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Pratten’s Investment Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1
Our Credo—Our core values and beliefs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5
• Performance & Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6
• Investments Offered & Services Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7
• Member-Partnership & Friendship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9
Our Commitment—Ethical Standards and Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1
• Knowledge & Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2
• Conscientious Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3
Frequently Asked Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5
Investment Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Speak with us. Personally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
TABLE OF
 
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