Ellen H. came to us seeking a profitable investment property in the 4.5 million NIS range. The only properties she had found in that range provided a 4% return, which she did not feel was worth the investment.
We didn’t find what she wanted. We found something better than what she wanted.
When we started to work with Ellen, we looked at the big picture of her finances and realized that 4.5 million NIS was an overextension. We offered her new options, new directions and new possibilities.
Within 2 weeks, Ellen closed for 3.2 million NIS on a 3 story Mea Shearim property appraised for 4.2 million NIS. The property was collateral for a debt that the seller owed, so he was not in a position to negotiate, enabling us to get the property for Ellen for well under its true value.
The property has been rented out to a large non-profit organization for the past eight years at 18,000 NIS monthly. While that reality provided a certain degree of income assurance, we added more security to Ellen’s profit by negotiating with the seller for a 2 year rent guarantee.
The structure of the deal limited her liability and will serve her interests well both from a legal and taxation standpoint. Her current rate of return is 6.5%, but the sky is the limit, since we secured building rights along with the property, as well as the option to divide it into smaller apartments down the road.
Ellen’s investment was lower than she imagined, offering more potential for profit than she expected. Fortunately, our strength is in imagining possibilities - and making them a reality for our clients.
Webbee, Digital Agency