How do we invest
3 Key rules:
Up to 75% Financing
An established and leased asset
Pricing is Below Market
Locating a potential asset
After careful examination of the targeted area – the population, asset condition, its occupancy history, asset registration, prevailing prices and property’s sales history, we decide whether to go ahead with the deal. 80% of the cases will result in a negative decision. Our selective approach creates a pipeline of opportunities but also a waiting list for our customers. We are focusing our attention in a Class B assets and higher, in order to reduce the tenants’ risk throughout the investment lifespan, combined with acquisition of properties with a occupancy exceeding 75% in order to reduce the investment risk at the time of acquisition.
Forming a partner group
After identifying a suitable property, we form a group of partners, some of whom are picked from our waiting list, with other partners whom we meet during marketing phase, with whom we share all opportunity information available. Usually, this process takes between 30 and 75 days.
After forming the group, we prepare and sign contracts that protect the rights and outlines the obligations of the parties. Deal contracts include all investment components, including asset location and description, initial investment costs, ongoing management, maintenance, transfer of funds, collaterals, trustees, renovation of the property and even an UP-SALE mechanism.
Completion of the purchase
After concluding contract signing by all parties involved, the asset is purchased, and the title is assured by a designated company. Only after the due diligence is complete does the investor’s money transferred from the trustee to the seller.
Screening, contracting and communicating with existing tenants
Our local company team contacts the tenants and perform a tenant – financial ability, history, stability, marital status, etc. If necessary, new contracts are drafted and signed. The local team also serves as the focal point for any problems they have anticipated. Our managing partner companies were carefully chosen based on their track of record in the asset area.
The asset is managed according to the regulations and best practices in the local state. We maintain complete transparency and availability for any question or request. Asset management services in the US work with the tenants, the US authorities and provide complete information to the Israeli investors.
Transfer of funds to the investor’s account is accomplished via secured escrow accounts without double taxation and on fixed schedule (usually on a quarterly basis).
Capital raising for additional acquisition
One of the most important turning points in the deal and our unique differentiator is the turnaround phase. After 3 years we will use the asset’s value growth and refinance the asset by raising capital from banks. Using refinancing we allow you to obtain additional financing for the purchase of other asset or cash out.