And what about today?

#IzmahShavuot Shani Amram #post6

And what about today?

Somewhere along the way, acquaintances of ours in Israel became interested in investing in the US, so we talked a lot about the subject and especially about the best plan for them. The many conversations with them led to the conclusion that it would not be right for them to purchase a property for them, renovate and manage it. They realized that there are knowledge gaps that could put them at a disadvantage, even if we are here as their feet and eyes in the field. The conclusion stemmed from the simple understanding that they have the ability to invest in real estate, but in light of the distance and the gaps in knowledge, they prefer a passive income stream, without involvement in the life of the transaction and of course without bearing responsibility in relation to the property.  

Accordingly, we offered them to invest in the form of a fixed interest loan. In this way, they are actually lenders and not investors. The concept worked perfectly, they earned good interest on their money and we had the funding to work - to purchase properties and improve them. After one round, they wanted to stay for another round and even leave the profit they made with us to leverage it as well. 

This is actually how our investment model was born - *debt loan model*, according to which we raise debt for a fixed and attractive interest rate for a predetermined time when each loan amount is allocated to a specific project. Today we see a lot of houses, focused on Brantles, constantly examining trends in Philadelphia, which as mentioned is a very diverse city, submitting offers on relevant properties, taking significant margins of safety and continuing to raise debt according to this model. 

We believe in this model the most, mainly because we understand the advantages it has both for the lender and for us.  

- The lender is saved from diving into a new market, bearing the responsibility of a property owner and being involved in the details. 

- Not only that, but that the loan is secured by real estate assets - each loan is attributed to a specific property and the loan funds are under no circumstances dispersed in the company. 

- Also, the interest percentages we agree on constitute an attractive return that is difficult to find in the bank or in other investment options. In addition, the amount of return will increase in accordance with the size of the loan. 

- Finally - this is a short-term commitment. That is, it is up to the lender's choice whether to put his money in our hands for one or two years, but in any case it is not a long-term commitment, but rather a fast, reliable and low-risk route.

- Of course, the contract is backed by a simple and clear loan agreement that includes all the necessary and essential details for the parties, including an exit strategy that describes how and when the principal and interest will be returned to the lenders. At the same time, reinvestment is possible - which means rolling the investment into another project of ours and thus extending the loan period under adjusted conditions. 

- Although we are interested in passive investment, we believe in cooperation and transparency. Therefore, every month we update about the progress of the transaction and actually explain to the lender how his money is invested in the relevant project.  

In any case, if you are reading this post, you are probably the type of people who understand the importance of investments, who are not just building on the pension, who are already thinking about the possibilities of economic growth. If you believe in the American real estate market and/or if you do not have enough capital to purchase real estate in Israel and/or if you do not want the risk and responsibility and hassle of owning and managing a property and/or if you aspire to become more professional in American real estate but do not Feel ready to jump into the water or for any other reason - we may be very relevant for you. 

In conclusion, an investment model may vary from person to person and depends on a variety of factors and circumstances. If the outline interests you or you are not sure about it but are intrigued - talk to us and we will think together how and what is right for you. Maximum we will work together  

In the photo: a moment from the last visit to Israel, a stop on the way to the Nili spring for a Druze pita with Labna that Daniel dreamed of. Or - a reminder for me of the flag and the country that is dearest to us.