Questions & Answers
A Multi-Family property is a housing complex of 100 units or more registered as a single property title, built in two stories, spread horizontally, and including resident amenities such as a clubhouse, swimming pool, gym, etc.
The main advantage for investors is risk diversification in the deal, and leveraging capital growth in a conservative, long-term manner.
The property is purchased as an existing and rented asset, and its value is determined by the actual rental income.
Focusing on purchasing in central and high-demand areas ensures the building will appreciate over time, as this type of apartment rental is very common in the United States and is accepted across broad segments of the population.
We focus on areas where laws favor us as property owners and don’t blindly protect tenants (typically Republican states) and in central areas with high rental demand.
The minimum investment amount is $100,000. The investor will receive ownership in the company that holds the building, where their ownership percentage will be proportional to their investment amount.
We enable investors to enter income-generating real estate investments in the USA with an accessible investment amount of $100,000, thus opening the door to investment opportunities typically available only to large investors. And since the management is done directly through us and we don’t involve third parties, we save hundreds of thousands of dollars in renovation, maintenance, and operational costs.
When investing in Multi-Family properties in the USA, you’re investing in an existing and operating asset. There’s no need for speculation about if and how much it will be rented – it’s already rented and demand is only increasing.
Additionally, you benefit from risk diversification – each investor has a proportional share in the existing building and isn’t dependent on “luck” regarding whether their specific apartment is rented or alternatively needs significant repairs, everything is shared among all investors.
Another significant security comes from the fact that the developer cannot profit before returning the principal and preferred returns to investors, so the developer has a very strong interest in taking care of their investors.
- In a single-family home, all maintenance costs fall on the homeowner. In Multi-Family properties, the burden is shared.
- In a single-family home, the management company doesn’t share the owner’s interests. On the contrary, the more issues there are, the more they profit. In Multi-Family properties, the management company is part of the ownership and has an interest in maintaining the property well and minimizing issues.
- A single-family home involves constant headaches and engagement with either the property or the management company. Multi-Family properties provide peace of mind.
- A single-family home’s value is determined by the market, and there isn’t necessarily a connection between the actual rental income and the home’s value. In contrast, a Multi-Family property’s value is determined by its rental income, based on the positive cash flow from renting the units in the property. There’s a direct correlation between the property’s price and its actual rental rates.
- The demand for affordable and accessible housing is always increasing. This is what Multi-Family properties offer.
As an Israeli citizen and resident, you are required to file an annual K1 tax form. An accountant reports in both Israel and the US. The first tax event occurs only at the end of the transaction when the property is sold.