Who is it for?
- Those who are looking at a first apartment for investment and want to understand the real cost before signing
- Owners of an existing property who are considering purchasing another apartment or using the capital locked up in the property
- Investors with an asset portfolio who want to plan financing, flow and reserve at the level of the entire portfolio
- Foreign residents and investors whose income or capital comes from outside Israel
- Buyers with a contractor deal or deferred payment who need to plan the future financing point
What is included in the service?
- Mapping the assets, liabilities, income, liquid capital and the necessary reserve
- Calculation of full purchase cost, including purchase tax and transaction expenses that the investor enters
- Examining the financing rate, the repayment, the flow and the total cost of the credit
- Stress tests for a decrease in rent, a period without a tenant, unusual expenses and an increase in interest
- Comparison of financing alternatives on the basis of uniform discounts and not only according to the nominal interest rate
- Coordinating the financial process with the payment schedule, while referring to a lawyer and a tax advisor as needed
how long does it take
The duration of the escort is determined by the stage of the transaction, the availability of the documents, the payment schedule and the banks' timings. It is recommended to start before making a contractual commitment.
How to review a deal
Four principles that separate feeling from testing
Deal before forecast
Starting from the price, tax, expenses and financing. Future value increase remains a scenario and not a basis for decision.
flow before yield
Gross return does not tell if there will be money left each month after expenses, empty periods and finance repayments.
Portfolio before property
Checking how the deal affects the liabilities, the reserve and the ability to deal with a change or another deal.
Pressure test before signing
Run an aggravated scenario to see what happens when the rent goes down, the interest rate goes up or an unexpected expense is added.
the work track
From five questions to a decision map
- 1
Map the starting point
Existing assets, equity, liabilities, disposable income and the purpose of the investment.
- 2
Build a full transaction cost
Price, purchase tax, lawyer, brokerage, appraisals, renovation, financing and reserve.
- 3
Compare financing scenarios
Amount, period, repayment, total cost, exposure to interest and impact on the flow.
- 4
Check durability
A base scenario and a conservative scenario that includes no occupancy, a decrease in rent and an increase in expenses or interest.
- 5
Moving forward with a decision map
Clear assumptions, required documents, order of operations and points that require legal or taxation examination.
Growth Sources by Ailon
The investor department that connects the deal, the financing and the entire portfolio.
Mekorot Gershma coordinates the examination of the transaction, costs, financing, flow and stress tests. Within the department, there is also an Ailon Investors Club for investors at the beginning and serial investors.
Open tools and without providing details
Check the deal before talking about it
Summarize costs, tax, equity, mortgage and rent. Then run a conservative scenario and check if there is any real reserve left.
Sources and precautions
A maximum financing rate of 50% per apartment for investment is a ceiling and not approval. Tax, ownership structure and contract require individual review.
to deepen before a decision
Guides that fit this route
Buying an apartment for investment
Financing planning, tax, flow and checks before signing.
To read the guide →The full cost to the investor
Purchase tax, attorney, financing, maintenance and exit costs.
To read the guide →Yield and flow in real estate
Conservative calculation of income, expenses and months without renter.
To read the guide →Financing a second apartment
Financing ceiling, equity, appraisals and sources of money for the transaction.
To read the guide →leverage and pressure test
What happens to the flow when the rent goes down or the interest rate goes up.
To read the guide →Checking a deal before signing
A financial test map that connects contract, tax, appraisals and financing.
To read the guide →Strategy for the next deal
Planning at the portfolio level, reserve and flexibility for future moves.
To read the guide →