Our Guarantee

You've probably heard of "one-off" syndicates that demand an automatic 15% to 20% ownership stake in the property (on top of their acquisition and management fees) as one of the up-front perks for management. LEAGUE syndications are structured differently.

We Don't Reap Where We Don't Sow

Often, in addition to charging fees, other syndicators will do things like pad the purchase price, and/or take a substantial ownership bite out of the property as compensation for putting the investment together, thereby taking value out before they put any in. They do this to secure their "upside" on the front end of the deal while eliminating their risk almost completely. If you call them on it, they'll tell you that this is simply the "cost of doing business". As we see it, these are the tell-tale signs of a poorly structured syndication.

There are a number of reasons we feel this way-the two most important being: this practice dilutes the investors' unit value and there is no built-in motivation for the manager to improve the investment returns.

To begin with, since the investor's slice of the pie is now 15% to 20% smaller, so are their returns. That means all the participating investors experience an immediate dilution of their unit value, and this in turn reduces their overall return on investment. Even worse, the rate at which the value of their investment appreciates is stunted by the same 15% to 20%. This makes investing in real estate less attractive.

The most significant danger for investors involved in those other kinds of syndications, however, is that there is no incentive for management to aggressively enhance the property once the deal is done. So, rather than working to increase the value of their investment beyond the expected appreciation of real estate values, and maximizing the investment returns for the investors, the manager remains content with the status quo. From day one, the investment is hobbled, and the syndicator's relationship with the investors is irreversibly soured. That's why they're called "one-offs": nobody would be foolish enough to invest with them more than once.

Bucking the Trend

By contrast, LEAGUE syndications are specially structured to increase in value 15% to 20% faster-with the ultimate aim of doubling your investment every five years or less. LEAGUE earns its incentive share after increasing the value of the property and your investment. Take the IGW REIT for example: we earn 20% of the increase in the rents and the capital value of the property we create through the application of our efforts and expertise. Since our compensation is in part dependent upon our own performance, we choose each property very carefully from the start, and the investment and your returns have our focused attention at all times. For a discussion of all the fees charged by LEAGUE, please refer to the applicable Partnership Management Agreement or offering document.

Your Liquidity

Because our assets tend to be illiquid (i.e. mostly real estate), some of the investments we administer have limitations as to the timing and size of retractions and/or early redemption penalties. While retraction limitations are intended to ensure the stability of the investment, early redemption penalties are put in place to protect investors from “day-traders” who would otherwise disrupt the stability of our longer-term investments by making short-term investments just prior to revaluation, only to redeem shortly thereafter.

Nevertheless, we understand that unforeseen personal situations can sometimes require that an investor liquidate his investment earlier than planned. For this reason, LEAGUE has built in various redemption mechanisms into some of the investments it administers. The particulars of which will be outlined in plain language in the particular Investment Overview, and in detail in its applicable offering document.

Your Value

To ensure that you are receiving an accurate price for your units, LEAGUE retains third-party valuation specialists to provide appraisal, property tax, and cost consulting services as needed for all the asset pools it manages. Thanks to the expertise and valuation experience they bring, Member-Partners can rest assured that trusted, specialized and independent updated appraisals are being provided.