Investment Principles

Since its establishment, the RM GROUP has been operating on very clear investment principles and a model for successfully analyzing and maximizing investments over the years. The model was created by Ran Harel and Matan Pertman based on their hands-on real estate investment experience in Israel and worldwide.

Real estate, unlike many other investments, is an investment channel that generates passive income on an ongoing basis, regardless of the value of the property. Our basic concept is to create the amount of assets that will generate a passive income for our clients them without them having to work for it.

 

Understanding the rules of the game

To know the rules of the game, you also need to be familiar with the players themselves, in other words, to be on-site. This is our job - to get to know the property or assets, as well as knowing the professionals working on the spot, to do a thorough review of every detail before we decide to close the deal and present it as an investment asset.

Our field operations include working with brokers, contractors and decorators, management companies, accountants, obtaining the Bill of Purchase and the Title companies. It is important for us to do all of this to the maximize confidence in the investment for you and for us. True, we save you all the fieldwork, but we do it for you as well as for us. It is paramount for us that every property we offer will be in excellent shape to prevent unpleasant surprises in the future.

 

 

Market Research Principle and Transaction Diligence

Each real estate transaction requires an in-depth examination at the macro and micro level, from the economic data of the country in which the investment is made, starting with the city, the neighborhood and even the specific street where the property is located. This diligence should be done carefully and thoroughly in order to establish the full picture and ensure the viability and success of the transaction, not just on paper, but in practice. The barrier for most people regarding real estate investments abroad is the physical distance and lack of information about the property. However, that need not necessarily be the case - today an abundance of means exists to acquire all the knowledge required, particularly in real estate. When we study an investment property, we look at the socioeconomic status of the residents in the property's area, the country's growth data, the unemployment rate, immigration status of the region, the location and nature of educational institutions, commercial centers and places of employment. All of these could be indicative of the quality of tenants in the property, its occupancy and, of course, the increase in value expected in the future.

Profit Maximization Principle

Among existing sources of profit, of first and foremost importance is to purchase property below market price. Then you can enjoy and maximize your revenue from regular monthly rentals, enhancing your property as a result of renovation or more efficient management, choosing the location of your property in an area with high value-added potential and raising bank finance.

However, that need not necessarily be the case - today an abundance of means exists to acquire all the knowledge required, particularly in real estate. When we study an investment property, we look at the socioeconomic status of the residents in the property's area, the country's growth data, the unemployment rate, immigration status of the region, the location and nature of educational institutions, commercial centers and places of employment. All of these could be indicative of the quality of tenants in the property, its occupancy and, of course, the increase in value expected in the future.

 

אזורי השקעה

 

Feasibility testing and collateral

Despite all the fieldwork and preparation, each real estate transaction holds an element of risk. You should stay well away from anyone who claims otherwise! Professional and regulatory measures can be taken with an aim to minimizing and isolating these risks. In this way, in a "worst case" scenario we will either have maximum protection or at least reduce the damage to the minimum possible.

An important rule for us is that in every well-designed real estate transaction, with full prior knowledge and data, the benefits and prospects will outweigh the risks. The risks exist but are calculated and fenced. Our experience has shown that on the few occasions we have had to deal with risk that has materialized, our preliminary planning has left us protected.