# Entrepreneur of the Week - Post # 5 It could have ended much worse, and tuition was not cheap,…
# Initiated week Post Number 5
It could have ended much worse, and the tuition wasn't cheap, but we did from Lemon Factory to Lemonade
In the third post I mentioned that I came in as an investor in 3 deals, and that 2 of them really came out successful? So the third - less.
It was a deal in Cape Coral, Florida. The company I met with was broadcasting solid and knowledgeable (sat in the offices of an insurance agency and owned by the insurance agency, coordinating the meeting was through the secretary of the company's CEO, expressing control over the complexity of the municipality's website, numbers, prices, areas ... it was obvious that they really understood what they were doing). Private plots for purchase, on which private homes can be built for sale through a local American contractor in partnership with them.
Since I already knew better to control the various sites, I researched and found that those lots really sold significantly more significantly before the subprime crisis (sometimes selling prices reflected 10% and even less of the value of the deals made before the crisis), and there really was no construction in the city for several years and more recently Demand. The numbers provided the goods and according to the business plan, it seemed that $ 130,000 investment would become $ 210,000 relatively easily and within a year. About 60% return before tax. Certainly worthwhile and entrepreneurship in demand areas is also possible.
I bought some lots at prices that were listed as asking price in Zillow and MLS (provided me with the material), got paperwork on my name, everything seemed to be working fine. Before signing with the contractor, we decided to fly there.
As a worldview, we believe that "real estate is on our feet" and even if we are "just" on the investor standard - yet I took on as a single investor almost $ 30 million building deals out of pocket. We went there. We met the "local entrepreneur" - two friends We are XNUMX - / + Israelis who have lived most of their lives in Miami. We traveled with them to Cape Coral for the first time, introduced me to the lots I purchased (most of the tours I did on Google, I knew very quickly to get acquainted with), we did in-house and building homes for sale that were presented to us as "contractor" projects "Really - nothing looks suspicious.
We loved what we saw, we thought we were on the century deal.
Need to note - Cape Coral is really considered a treasure chest. This is a beautifully designed city with its beauty of 650 km of excavated water canals that connect the river to the Gulf of Mexico. Seafront homes enjoy a drop in canal cruises, fishing and water sports, the inland homes are a little cheaper and every home is built on a quarter acre lot ( The city was founded 1 years ago and is between Port Charlotte and Naples which is like saying between Arsuf and Herzliya Pituach, only that it has not made the jump in prices yet. Huge potential, so it is sought after and Forbe's is also ranked as the growing city Most US in 60-2016. US !! All !! We loved what we saw. We didn't meet the contractor - according to the guys, "he didn't get along." Not bad, we thought ...
Four months after the visit we were already in the midst of a collaboration, I had already signed agreements with the contractor and started organizing construction money - a little over $ 100,000 per home. I even entered into the agreement as personally involving the contractor's representative - the father of one of the guys.
But then things stopped working. More than too many information gaps and inaccuracies were found, for example - the registration of the lots in the municipality was actually on my name and at the published price, but I found a few days before I was registered, it was bought by the Israelis and transferred to my name in Quit claim deed. "What do you care about how much we buy, you get at the price you agreed to buy." It's true, but annoying and unreliable. "We are buying power and are able to lower prices" This is also true, but the gap has already reached $ 25,000 after Some lots and it is very annoying.
From there, in my research, I suddenly discovered a building regulation that says waterfront homes must be 1,300 sq / ft and above. But hey, I bought lots on the waterfront and ordered building services for only 1,100 sq / ft (I was told it was a "snatched" product). How can it be? "Our contractor is experienced and knows what he's doing. It's probably a mistake." Having already spent several tens of thousands of dollars as advances to Fort Lauderdale's faithful lawyer, another Israelite of course, who was not supposed to transfer the money until receiving the permit - I realized that the permits would not be, but the money was not for her long ago. "I saw a signed permit with a notary's signature. I'll send you." Indeed, there was a copy of a permit signed by a notary - but the municipality has no permit.
I decided to fly again and took Noam with me. We were able to reach them directly (we bypassed the Israelites). In retrospect, he turned out to be a skeleton subcontractor, a former Mexican who speaks Spanish and very little English. He said in his broken English that the guys' dad was a known crook who took his license as a deposit for the work he did for him (and so we actually got the contractor's documents). He never issued a permit himself or applied for a permit or even worked in Cape Coral ………. We realized we had fallen into a sting exercise!
The permit with the notary's signature - fake, the lots are registered on my name but the loss of brokerage gaps and the money that was in trust? Gone and has no recollection. Phone exchanges, emails, nothing.
I filed a lawsuit in Miami. A private hole I took found that the father-in-law has old IDF files in Israel for fraud and fraud and they left / ran away from Ashdod 20 years ago.
The cost of managing the claim was very expensive and apparently there was no one to charge, an investigation of ability showed that they had no assets to their name and nothing to be repaid - crooks with certificates.
I bit my tongue, hurt to lose - but we discovered an amazing city.
On that same visit, we met with real estate agencies and contractors, returned to Israel, did good testing (we invested a lot of money in testing) and finally signed with the largest and oldest contractor in the city - about 30 years of work. We built a system, set up an array, re-created the deal.
best derived from worse. Cape Coral is the diamond in our crown today, yielding, fast, high-quality deals and we know the city well and are in direct and daily contact with the agency that sits in our office there, with the contractor and the municipality. To date, the local partnership has already sold dozens of homes and is currently for sale 5 new and 2 stages of completion / completion. From the time of purchase of the land to the permit - about two months, and another 3-4 months for construction - a block home and castings from A to Z in six months. The sales price environment is about $ 260-290 per house, we do these deals in pairs that produce about 20% return per year net work + sales periods. When we sell these - we will buy new lots (always buy "ad hoc" per investor group and not hold stock). The deals are in our equity with investors and without leverage - simply because the price doesn't justify escorting and the process is so fast that there's simply no need.
In the pictures you will see a house for sale after staging. By the way of Corona, since it is impossible to have an "open house" during this period - we are moving to a virtual sale in XNUMXD. Tomorrow you will see an example of houses we have already sold in Houston using the same method.
We visit the city at least once a quarter, examine and select every plot of tweezers and already know the tricks, for example: There are protected turtles in the city that if they are home on the lot before development - will cost about $ 1,500 and will take about 4 months to evacuate each turtle's permit! Taking the law into hands in this case constitutes a federal offense. Another example: The city is undergoing a huge process of development and replacement of infrastructure, so you need to know where to buy lots and adjust the right home for each lot (3 or 4 rooms, balconies, etc., depending on the location of the lot). We enjoy every moment.
The tuition for the deal was expensive but paid off.
And about the company marketed in Israel? They were unaware of the combine (or did it?), They too were turning (or not ...), and their activity was stopped. I guess claims were made, and rightly so, I preferred to move forward. Since we are the only Israeli company that works in the city, we come out with investors who are also stung and we try to help, so if you know them ... Tell them about us.
Tomorrow post Friday! Expanding our operations in the US and on Saturday, post seven, get to know the group's activities and how it all works together ... pleasant day ??
In the pictures: a house in the construction stages and after the staging
And of course - you can't talk about Cape Coral without seeing a little:
https://www.youtube.com/watch?v=pqqLlR0WqRU&list=PL08fHZ075HrHU9IZGvc9XxlfA694QRPfp
And an interview with one of our agencies:
https://youtu.be/p-WxU9r_0lk
https://youtu.be/p-WxU9r_0lk
Hello "Entrepreneur of the Week", my name is Ronnie Shoua and I have been living, breathing and breathing Florida for the past 20 years. I'll tell you something: this morning I was at an Israeli dentist, my car mechanic is Israeli, my lawyers are Israeli, my accountant is Israeli, 80% of the professionals who work for me (I have a management company) are Israeli, almost most of my close friends are Israeli, my wife is involved in the community The Israeli is sometimes more than in her own home, my children are members of Israeli movements at the universities where they studied and are still studying, I am shocked by your courage to write "Israelida"!! You sin the sin of arrogance, and it hurts me personally and an entire community that I am proud to be a member of. Regarding the transactions you do / have done on the West Coast, I will give you my professional opinion as a realtor with an hour and a quarter more experience than you - and again this is my private personal opinion (!) You cannot call yourself a "successful entrepreneur" but rather a "resounding failure" (no I don't care if Lior Lustig blocks me because then I know it's the truth) and believe me I can upload your property from the MLS and explain. You have greatly violated your inclusion - this is America, you have been hurt or stolen or the devil knows what - there are courts here that work very quickly and very efficiently and there is a place to clarify and settle disputes of any kind. Bush and everything to you. I must state again - I am a (proud) Israeli in Florida.
Gal Rish
A fan, a realist who fails in a deal or who has not gone from one level or another is likely to be either a liar or inexperienced.
A beautiful reporter and I know a lot of crooks who left the south of the country to the United States (you will also get a lot from Ashdod) need to understand that everyone who leaves has a reason for cheating they did and fled and some simply did not succeed in the country. There is not much left for success and a happy life.
But, to present the Israelida is a bit annoying to me (even though in Miami the concentration is a bit excessive ????) Not all Israelis are crooks and even I try to convert my local team to work with Israelis as much as possible.
For the gentiles, the rogue is not missing and the situation is even worse. Without racism, there are ethnic groups that I am twice as cautious of and non-Israeli. Although the scams are usually less sophisticated, you still have to be careful about every transaction.
Your greatness is measured by not giving up or lifting hands. You swallowed the pill and moved on well. Most people were unable to cope with failure and keep running with all their might.
By the way, courts in this case are just a waste of money and nerves, the crooks know the techniques and conduct under the auspices of the law in most cases gives you a paper that perpetuates the pain.
The wise one does not get into trouble that only a clever can get out of, now you are much smarter and I am sure you will see many new exercises and tricks.
???????? Well done ! All for the best
Oh my god, I enjoyed every moment of reading, it was amazing to see the Swiss from the Dark state to the growth state.
Maintaining resilience, re-examining the situation and exiting excellence
Straightforward
Shimon Vanono
You write beautifully. Some things. I did not understand why you introduced the "Israeliade" fraudsters exist everywhere of all genders and races. Secondly, in order to plan the construction of a property, you need to understand the cost of construction (the land is indeed cheap in those areas), but also the selling price accordingly. The construction of a single family does not cost 100 thousand dollars but much more about 100 dollars Sqft so the question is which houses have you built and of course how much can such a house be sold for according to similar houses sold in the area.