THE AMERICAN-ISRAELI GOVERNMENT DEVELOPMENT PROJECTS – TAMA 38

OVERVIEW:
American Israel specializes in the National Building Program from the Israeli government known as TAMA38. It’s a portfolio of real estate projects in high-demand neighborhoods (Tel Aviv, Jerusalem, etc.). Developers renovate the pre-1980 apartment buildings to increase the availability of urban housing and reinforce structures from earthquakes. Developers on the TAMA38 projects get to add new floors on top of existing apartment buildings in exchange for improving the buildings. There is already a shortage of apartments in Israel. Central Bureau of Statistics predicts the Jewish population will rise to 15.2 million by 2048, thus further ensuring a constant demand for housing. Although over 250,000 buildings qualify for TAMA renovations, developers are currently focusing on the top markets that produce the highest ROI. Through TAMA38 renovations homeowners raise their property value by ~30% and receive significant tax exemptions. “Pre-Sales” of the renovated TAMA38 apartments are at the highest demand seen to date not only from the local but also from the American buyers.

OPPORTUNITY:
American Israel will develop the construction of approximately 10 projects per year. Developers work with investors acting like lenders that receive Interest on their investment and profit-sharing depending on the investment amount. A total of 5 projects have already been successfully completed, with 90% of capital reinvested in other TAMA38 projects. Developers earn their profits from the sale of new apartments after the investors paid back. Investors are also given the option to purchase a new apartment from the developer at a discount.

TERMS:
TAMA38 projects last 12-36 months earning from 10% to 17% ROI per year*.
*The yield depends on the project. Currently, developers rely on private funding, thus offering
a double-digit yield to early investors. As TAMA projects continue to become more common in Israel
and there will be more sources of institutional funding available, potentially later decreasing the yield.

LOAN OPTIONS:
1) If a loan less than $500,000, earn 10-12% interest rate
2) If a loan more than $1MM, earn interest rate + profit share = 11-13.5% ROI
3) If a loan more than $10MM, earn interest rate + profit share = 14-17% ROI

STRUCTURE:
Each project is set up in a new Israeli limited corporation to hold & manage investments. American Israel manages the projects on the ground in Israel on behalf of the lenders (investors) and has a ‘skin in the game’ by investing in deal alongside investors.

MANAGEMENT:
American Israel is an expert team of professional “American” management in Israel

PROJECT “BIALIK 12” : $240,000 & UP TO 15.5% ROI
• Loan Size Needed: $240,000+
• Project is already 4 months into construction
• 20 months term
• Project is to be finished by February 2022
• The fixed interest % per annum + profit share

PROJECT “HAR HOTSFIM” : $260,000 & UP TO 15.5% ROI
• Loan Size Needed: $260,000+
• Project is already 4 months into construction
• 20 months term
• The fixed interest % per annum + profit share

PROJECT “RAMAT GAN”: $1.75MM & UP TO 17% ROI
• Loan Size Needed: $1,750,000+
• Project will start in 2 months
• 36 months term
• Tear down 2 old buildings & replacing them with new w/54 units
• The fixed interest % per annum + profit share

PROJECT “ABDEL ESTATES” : $2,5MM & UP TO 17% ROI
• Loan Size Needed: $2,500,000+
• New Construction
• 48 months term
• 9 Luxury vacation villas
• The fixed interest % per annum + profit share

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