David R. came to us seeking a profitable investment property and was open to any location in Israel. Given his flexibility, we were able to hunt him down a deal with an unbelievable rate of return.
We found David a 60 square meter ground floor apartment in Haifa selling for 800,000 NIS. The building was situated only one block from the beach, in an upcoming area undergoing major development. Much of the development was under the auspices of Tama 38 - and this particular building was about to receive a Tama building permit, which would dramatically increase the value of the property at no cost to David.
While the developer in charge was Yehuda Levy, one of the best developers in Israel, we made sure to do due diligence before recommending that David make the investment. We wanted to feel confident that the Tama was going to move forward without issue and that the return on investment would justify itself. We spoke extensively to the project manager, the sales manager, lawyers and appraisers until we felt comfortable that the deal was a go.
David bought for 800,000 NIS and upgraded a portion of the apartment for 50,000 NIS. The remainder of the renovations will be on the developer's tab - not his. The building will be completely refurbished from top to bottom, adding elevators, parking and new windows, tiles and bannisters. Each apartment will receive an additional bedroom, a terrace, and an expanded living room. The final value, according to expert appraisers, should be in the 1.15 to 1.2 million NIS range.
For maximum return with minimum headache, we connected David with an expert local property manager. David is already making a hassle-free 2200 NIS in rent a month, and when the Tama renovations are finished, he should be able to rent out the apartment for about 3500 NIS. Or he can flip it for a 40% return on investment.
The choice is his.
And the deep satisfaction that comes from connecting a client with an out-of-the-ordinary deal… is ours.
Webbee, Digital Agency