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QUESTIONS & ANSWERS

Why do I need to open an LLC?

LLC, or limited liability company, helps to minimize risk and protect real estate for investment purposes. From a legal standpoint, the company is a separate legal entity through which all the business activity is done. In case anyone has any claim or lawsuit against the company, they can’t sue the LLC owners, but only the LLC itself, and only up to the amount of the investment. Having an LLC also allows flexibility in working with local service providers such as banks, title companies, and tax authorities.

How long does the investment process take?

The process takes about a month and includes the following stages:

1. Locating a property according to your needs, budget, and location. An LLC and bank accounts are also opened at this time.

2. Presenting proof of funds to show that you have the financial ability to purchase a property. You’ll be able to choose your property once this is completed.

3. Submitting the offer and performing a point of sale inspection by a supervisor from the local municipality. The supervisor checks the condition of the property and files a report to approve residential or commercial use.

4. Working with the title company. The title company is a neutral and independent legal firm which makes sure that the property is free from any mortgage or debt. The title company also takes care of all the purchase documents, transferring the funds to related parties, and enlisting the property at the land registry office.

5. Transferring property ownership via the title company.

How long does it take until I have ownership of the property?

The property is enlisted at the land registry office within one week after transferring the funds. You’ll then receive a deed that proves that you are the property owner. and in general.


How long does it take the property management company to rent the property?

The property management company does its best to lease the property by advertising on various media. To make sure that the property is rented to a responsible tenant with a steady background, the filtering process is very thorough and can sometimes take a while, between 30-60 days.

What is the return rate?

The return rate is based on your investment profile and risk preferences. Before making any decision, you’ll be presented with a comprehensive deal analysis that breaks down the property’s financial parameters including the expected return rate. and in general.


How can I be assured that the property actually exists?

You can take a look at it using Google Earth’s street view.
We personally visit the property together with the local municipality’s supervisor and make sure that the property passes the required inspections and is valid for use.
The title company, who is a neutral third party, provides approval that the property is owned by the seller and is free from any mortgage or debt.
If you want, you can take a flight to the US and personally visit the property- we’ll take you out for a cup of coffee 🙂

Who are the tenants?

We generally look for properties that are suitable for families. We look for properties near kindergartens, schools, and employers—the most important aspects for families with kids. Proximity to parks and recreation centers are also considered. Before signing lease agreement, potential tenants go through a comprehensive background check to verify their financial abilities.


How is the rent deposited to my account?

The tenant transfers the rent to the property management company at the begin- ning of every month. The property management company transfers the money to your US bank account a few days later. Real Estate Group.

How do I get EIN and ITIN numbers?

EIN is a number that identifies the company with the IRS. You will get your EIN after opening your LLC. ITIN is a personal tax payer number. ITIN usually takes 3-6 months and you apply by contacting an accountant with expertise in US tax. We’ll also be happy to assist. and in general.


How can I receive money in Israel?

Your US bank will send you a debit card usable in any ATM. You can also wire money from your US account directly to your Israeli account.

What if the tenant doesn’t pay?

The property management company has a few ways dealing with payment issues:

1. Charging a late fee.

2. Withdrawing the tenant’s security deposit, usually a month’s worth of rent or more.

3. Applying for a tenant eviction at the local court. The process usually takes 6 weeks from non-payment to actual eviction.


What if the tenant leaves the property without any warning?

This is highly unusual. However, if the tenant has suddenly left or disappeared, the tenant’s security deposit will be used to cover any turnover expenses.

What if the property is damaged, for example, by fire?

All of our properties include insurance. In case of a fire, insurance company will offer financial compensation or the funds necessary for rebuilding the house.You can also wire the money from your US account directly to your Israeli account.


What if the tenant damages the property?

In this case the tenant will be required to pay for repairs. Should the tenant fail to follow his duties, the security deposit will be forfeited to the owner.

Do you have local offices in the US?

Yes, in both Ohio and Arizona. Our local team is highly skilled and can handle all of your needs quickly and efficiently.


Can I also contact you to sell properties?

Yes, we will be happy to help selling your property.

Which monthly/yearly fees do I need to pay?

1. Property management fees ranging between 8%-10% from the monthly rent, once the property is occupied.

2. Property insurance once a year.

3. Property taxes, paid in two installments throughout the year.

4. Home warranty is highly recommended and paid once a year.

Yearly tax reports – who produces them and when should they be filed?

Yearly tax reports are produced by an accountant and need to be submitted once a year in April. We will be happy to have one of our experienced accountants handle these for you.

 

What risks are involved in US real estate investments?

Buying a property in the US is like any other real estate investment. You should investigate the market thoroughly and choose your local partners and management company carefully, as they will be your eyes and ears. Beyond that, there are several risk factors associated with US real estate investments:

1. National market risk — the entire US real estate market may undergo a national crisis, as was the case in the end of the previous decade.

2. Regional market risk — there are a number of factors you should take into consideration when choosing your investment location: surrounding buildings and construction projects, connections to highways and public transportation, education system and proximity to entertainment centers. Additional factors such as employment opportunities, state emigration rates, and future market trends should also be taken into account.
3. Property quality — maintenance costs could affect your return rates if not taken into consideration.
4. Tenants — turnovers could generate unforeseen costs, and might influence the overall return.

5. Currency risk — US investments are made with US Dollars and there is a risk that the Dollar rate might weaken.