# Entrepreneur of the Week Gil Toriel ** Post 6 ** ** Shabbat Shalom and congratulations to everyone, ** For those who do not know my name…
# Initiated week Age of Toriel
** Post 6 **
** Shabbat Shalom and blessings to all, ** ????
For those who don't know me
My name is Toriel age 43 + 2 lovely children
Owner, partner and founder of the real estate company
** Safe Future Real Estate Investments **
We are engaged in new construction in the US. Several years
We have so far built over ** 1600 new homes ** mostly in the southern US in Atlanta and Alabama. Most of the houses were rented out to generate passive income.
We also purchase shared housing complexes called ** Multi Family **
We have been conducting workshops for examining real estate investments in the USA since 2010
To view videos including such a workshop click on the links provided
[https://www.youtube.com/watch?v=vMbRQCBhcYI](https://www.youtube.com/watch?v=vMbRQCBhcYI)
We hold professional workshops every month to examine real estate investments in the United States.
In the workshop you can get many professionals.
Anyone who wants to come hear is welcome to contact me in private and I will be happy to invite you.
The workshop is very professional and full of quality content written after much experience and learning from the field.
To watch videos on the ** You Tube ** channel
[https://www.youtube.com/user/gilyossi/videos](https://www.youtube.com/user/gilyossi/videos)
To watch a video of a neighborhood we built in, feel free to be impressed by the finishing touches
[https://www.youtube.com/watch?v=yLPcJy3D8Kc](https://www.youtube.com/watch?v=yLPcJy3D8Kc)
To watch a video of several projects
[https://www.youtube.com/watch?v=rTqur_Mz-Wk](https://www.youtube.com/watch?v=rTqur_Mz-Wk)
For a fun trip in the house we built please click on the link below / see the finish
Why I invest so I invest ..
please..
have a fun read
Massive positive migration to the area first of all ..
Why am I investing in ** Huntsville, Alabama ** in new U.S. construction to create a pension.
The city of "missiles" - this is its nickname, the seat of the
** Space & Rocket Center of Nasa **
The Huntsville metropolitan area is the second largest metropolitan area in the state of Alabama with about 450,000 inhabitants, and has the largest population growth rate in the state. The Huntsville metropolitan area attracts a high-quality population, families and children, due to a wide range of employment, including the ** Fortune 500 ** companies, in the area of the best educational institutions in the United States with a particularly high rating.
The city of Huntsville is the third largest city in Alabama and is considered one of the ten smartest cities in the United States.
Extensive employment diversity
3.5% unemployment rates
Massive new construction
City airport
Accelerated environmental development
The city of Huntsville has received a "AAA **" rating from Moody's and S&P
** The best technological city for living and working in the USA
The FBI has moved operations to Huntsville and is creating about 4000 new jobs in the city.
** Mazda Toyota ** is building a huge plant with a huge investment of $ 1.6 billion and produces about 4,000 workers directly, about 10,000 workers indirectly.
Huge investments throughout the city / district for hundreds of millions of dollars in environmental development, creating thousands of new jobs in the coming years!
Hundreds of houses under new construction - entire neighborhoods are being built
Huge crazy shopping centers in the area - from personal acquaintance in the area
Unemployment rate of about 3.5% in May 2020! Wow…
The real estate market there is a significant upward trend, short sales time, demand for housing. A market that is constantly on the rise.
Low occupancy island rates.
Especially high potential for future value increase.
The following is a list of some of the city's main employment centers:
1: ** US Army / Redstone Arsenal **, Government, 14,601
2: ** Huntsville Hospital system **, Health care, 5,126
3: ** Boeing Company **, Engineering, 3,000
4: ** Huntsville City Schools **, Education, 3,000
5: ** NASA / Marshall Space Flight Center **, Government, 2,555
6: ** Sanmina-SCI **, Electronic components, 2,500
7: ** Cinram **, A / V replication, 2,500
8: ** Intergraph **, Computer equipment, 2,450
9: ** City of Huntsville **, Government, 2,199
10: ** Madison County Schools, ** Education, 2,150
11: ** SAIC **, Engineering, 1,716
12 ** Siemens **, VDO Automotive, Electronic equipment, 1,700
12: ** ADTRAN **, Telecommunications, 1,7,00
14: ** University of Alabama in Huntsville **, Education, 1,318
15: ** Teledyne Brown Engineering **, Engineering, 1,243
16: ** Madison County **, government, 1,220
17: ** Benchmark Electronics **, Engineering, 1,200
18: ** Northrop Grumman **, Engineering, 1,125
19: ** Alabama A&M University **, Education, 1,092
20: ** West Corp., ** Customer services, 1,000
20: ** DirecTV **, Customer services, 1,000
22: ** Crestwood Medical Center **, Health care, 994
23: ** Toyota Motor Mfg. Alabama **, Auto engines, 950
23: ** Madison City Schools **, Education, 950
25: ** LG Electronics **, Electronic devices, 900
25: ** Dynetics **, Aerospace / defense, 900
Come on, a numerical example of a pension deal was born at a young age ..
Ready:
** Here we go **
This is what it looks like, linking to the house we built in this neighborhood
[https://www.zillow.com/homedetails/7007-Camrose-Ln-NW-Huntsville-AL-35806/109488473_zpid/](https://www.zillow.com/homedetails/7007-Camrose-Ln-NW-Huntsville-AL-35806/109488473_zpid/)
Welcome to the finish level.
100% in five years !! ???? ⚡ ????????
For retirement we were born at an early age ..
???? The freedom to do what we want when we want ..
????there's no price for freedom..
How can you make 100% on money in five years, meaning 20% a year without paying taxes along the way?
Sounds impossible to you, let's see.
Ready ????? ️ ???? ️✒️
here it comes
Knowledge = power = money ????
The cost of a completely new property with an exceptionally rich technical specification includes many upgrades in an extremely powerful area with a robust and stable Anglo-sexy population.
???? Total ** Total cost $ 228,000
** The size of the house is about 180 square meters built, 4 bedrooms, 3 baths, 2 toilets, double parking in about 35 square meters more.
???? Equity from home requires only ** $ 80,000. **
Everything else financed by a loan from a bank, the 30-year loan at 5.9% per annum, the first five years only interest payments only !! Then twenty-five years of principal and interest payments.
Expect gross annual rental income about $ 22,000
Net expected income after fixed / variable expenses is approximately $ 7,000 - $ 7,500 per year
(After repayment of interest payments on the loan).
That is, about 8% -9% expected return on equity invested in the year after offsetting expenses, maintenance, etc.
Now we will double in 5 years and here we have about $ 35,000 / $ 40,000 net income after tax (financing expenses, building insurance, property taxes, neighborhood committee, unexpected, maintenance, depreciation) generate us a negative tax liability in the US and Israel !!
Zero tax - This strategy generates zero tax liability on current rental income in the United States and Israel.
Now we will take a job assumption of a value increase of about 5% per year. A new construction secretary, the contractor alone raises construction prices on average by 10-12% each year regardless of market prices.
We are conservative in assuming our work.
5 years * 5% = 25% increase in value
25% * $ 228,000 = $ 57,000 Increase in value / expected in 5 years total.
Five years later, the property is worth about $ 5
Now is the time to go back to the bank and say
Dear bank Hello, I came to bring my money home because I want to buy more property and make a pension for myself forever
Now let's take 70% funding from $ 285,000
That means about $ 200,000 of her mortgage
Reduce her first mortgage, which is about $ 150,000
And here you have another $ 50,000 in pocket + $ 35,000 from rentals
That is, 100% return on equity (of course, the costs of setting up a loan should be offset but this is negligible in relation to the aggregate return on invested equity)
Without paying capital gains tax **, Capital Gain 25% **
Without paying taxes on ** 6% brokerage **
Without paying ** 2% ** Closing fee ** Closing Cost **
Without improving and trying to sell the property as a flip and be exposed to ** Ordinary ** ** Income + ** taxes in the country, ie about 50% tax on the profit! (In short-term transactions of purchase, improvement and sale, there is exposure in Israel to maximum taxation as income from a business and not a random sale transaction.)
Simple, easy and shellfish when this money immediately goes to additional investments in order to increase ** Equity ** and of course my ** Passive Income ** over time. (De-interest effect)
By the way, this model can also be applied in a transaction where we take a 30-year mortgage loan with principal and interest payments.
I have been doing this for myself personally for years, I have practically accepted receipts, facts, mortgages I have made in this model for my home many times.
These days, I am refinancing my loans and amassing cumulatively including the rent about 100% of the equity invested in dozens of properties I own, most of which are completely new.
I make a portfolio loan on all my assets as a commercial loan only for 10 years interest payments.
The money will be invested in additional assets, there is no capital gains tax because I do not sell, what can I tell you so simple…
By the way it sometimes takes me 4 years to do it, but it's for optimistic people who love life and aren't afraid to jump in the river and swim. This is usually related to the rate of increase in value. In a neighborhood where hundreds of new homes are being built, construction companies along with construction progress raise prices alone regardless of market prices.
I can give endless examples of such assets we have built over the last 5 years, without endless examples.
Knowledge = power = money
Incidentally, in the case where the rate of increase will be 3% per year then it will take another year, two years to reach 100% without any problem, everything is tax exempt as long as the property is not sold.
This is how you do real estate and this is how you get rich and accumulate property and increase the aggregate value and create a pension plan.
Don't sell assets, accumulate them and make pensions.
Most people are scared to get out of their comfort zone and stuck in their work, enjoy!
Not for me… It is also possible otherwise.
What does ** Safe Future Real Estate ** do?
New construction in the USA - income-producing properties with rich technical specifications ????????
???? Strong and developing areas in the southern United States
Full accompaniment from A to T
???? Local management company
Payment for the property only when the house is finished and there is a Form 4
Obtaining financing / mortgage for Israeli citizens in the United States for up to 30 years
Full support for obtaining a mortgage - up to 70% financing in the USA
???? Arranged registration in the local register - direct cost in the maintenance of the property
Full technical specifications, detailed sketch of the house
Fancy upgrade package
Extensive financial planning to obtain funding for 15, 20, 30 years
???? Expected cash flow - Excel income / expenses, expected net return
Aggressive tax planning
???? Long-term financial planning for the loan cycle and extraction of invested equity
Full support when selling the property in the United States
What we know to produce for an investor:
???? Current return / return on equity
???? Future value increase
???? Saving the loan principal
???? Tax advantages, aggressive tax planning
???? Leverage, Equity Fund, Spitzer Board, Balloon Loan…
???? Loan turnover for refinancing
???? Compound Interest
???? Savings plan for retirement age
Safe Future Real Estate Projects
Single Family Homes ????
Multi Family Complexes ????
New Construction Projects. ????????
Up to 70% LTV Finance - Loans / Mortgages ????
One-Stop-Shop… ????????
Many investors contacted me this week and asked what I would do next
So please these days we are setting up a fund of opportunity following the Corona virus to take advantage of the opportunities that come
US Real Estate Investment Opportunity Fund ???? ✍️
Corona? opportunities? crisis? ????
See… Time will tell ????
We picked up the glove .. ????????
Opportunities do not come every day and certainly do not last long term.
We are preparing for the opportunities that will come… ????
Well prepared… ???????? ♂️
Benefits of an investment fund:
???? Fixed and stable monthly cash flow
???? Risk aversion
Full management
???? Investment in peace of mind
????Economies of scale
???? Collateral - full proprietary holding in assets
???? Bank leverage
???? interest de interest
???? Distribution of the investment portfolio in several geographical markets
Want to hear more?
Talk to me in private
Below is a video with more information
[https://www.youtube.com/watch?v=z3Ud-9Ab7bA](https://www.youtube.com/watch?v=z3Ud-9Ab7bA)
Hope I contributed some of my information and experience
Thanks to everyone for commenting and reading the posts throughout the week
I wish everyone a lot of success and fruitful and successful real estate work
I would love to help and help with any questions
Welcome to contact me with details
www.safefuture.com
Many thanks to Lior Lustig for giving me the privilege of being a guest this week in this forum. ????
Many thanks to Nirit Goldman for the tolerance and assistance ????
A quiet and blessed Shabbat for everyone ????????????
Who knows good times
Attaches a number of Tachel's videos from the area itself
There are those who dream at night, here are some videos of people like me staying awake at night to make their dreams come true ???? ♂️
Best regards,
Age of Toriel
Energies ???? ♂️
Cheers ????????
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
Nir Har-Zion
Eden Bar
Elisha Ben Hamou
Eyal Siegelstein
Age, we will keep you informed that Huntsville has already become the second largest city in Alabama
It was interesting to read thank you for a fascinating week
For all responders… The world of real estate investing is wide-ranging and so are the types of investors… What suits one is not necessarily suitable after… All the geniuses who know how to make one hundred percent on their money in a 3-5 year period and their hard to pargan when seeing an entrepreneur in action.
It is true that a good purchase is in purchase but not everywhere and not in every situation and certainly not in new construction. One of the important things is LOCATION LOCATION LOCATION… and also in times of crisis when the market is in retreat and you are in a good population segment so you at the end of the day make money and the increase in value will come later because that is what history says many, many years back.
Yes, I've been one of Safe Future's investors for many years and I can say for sure it's a great place to be, I testify to myself and can say I'm satisfied without going into numbers because you'd already given me a headache… What's more Not because they do not make money over the years… and in an optimistic tone that everyone will have success
Gil Turiel Can You Explain Please * Exactly * Why is Tax Duty Negative?
What resets it? If your income minus all expenses is about 7k
Age Thanks for the post
For 100% on the money in 5 years I do not need the US
This can be done in the country in the periphery not with much effort,
As you did in Ramla in the past only in a little more remote areas
After all your beautiful and impressive explanations
You just buy a house at market price! With a mortgage
Relying on rising market value (which you believe will continue to be but never resilient)
Every savvy investor realizes that making the right investment is first and foremost a purchase,
Regulation at 25% below the market price - this is a b
Even before the 30-year mortgage
Before saving the loan fund
Before the value increase
Before "zero taxation"
Before the current yield
When buying a property at a market price you are more exposed to market volatility and to some extent risk your equity
Although you believe 100% that the areas you operate in will continue to rise due to the parameters you specify
Nothing is certain and the price cycle has reached its high level in 10 years, which does not guarantee a continued rise in prices
If you find the deal you mentioned above
At 25% below its value
You will pay 171K instead of 228K
Transactions that buy at 25% below par are usually off market and there is not enough time to take a conventional mortgage from the bank
Then we will use a 70% bridging loan from Privet Lander
In total, we take out a loan of 120K and women 51K equity to purchase + related expenses
After purchase and populate renters
We will make a refinance from a bank at the 65% value of 228K
We'll get 148K. We'll return the 120K to Lander and take the 28K
Total equity invested in the transaction 23K + related expenses of closing, private land, the cost of making a loan, etc.
after all
In the transaction you presented
Invested 81K equity
In the alternative I presented
Invested 23K equity
Hence you will derive the whole calculation of the yield which becomes significantly higher
That's how you get 100% on money in 3 years and even less, not in 5 years
In conclusion
You can buy a market value property with a mortgage and wrap in cellophane packaging
Saving the loan fund, increase in value, aggregate yield, current yield, zero taxation etc etc
Skilled investor
First of all right buyer (below par)
I'll wait for everything else
This is all the Torah on one leg
Sorry for the harsh criticism
I really respect your activity and that of Yossi Berg
And I even referred you to past investors who bought your way
Gil advice. a member of the profession. .
don't come in to field the taxation. United States. Israel... because it is very dangerous. I am connected to 2 respected offices. in the country. Aminoh Steinmetz... and the BDO office.
must do Correct tax planning and it's not black and white.. there is. Single tax.. there is an LLC that is income tax in Israel. ingot. A tax on her whether or not. You brought the revenue. to the country Or not... a transparent company. And there are opaque companies. INC.
And there is an estate tax. in case of death. The owners of the property...the professional ethics. Requires that you do not engage in the field. which is a mine. It is a responsibility. The accountants.
We are the realtors in the US. Do not advise on taxation..the yield we are showing.It is net.Net.Net..Before tax.
Every investor. He will handle the wind. His..
Despite all this the returns. Doubles. than in Israel.. and without referring to capital gain..
A property seller should know that it is separate in the sale. From 6 percent of the seller's commission and another 1 percent. Closing costs..
and if He has a mortgage. He is expected to pay an early repayment fee.. My father Zel. always said you were The money is counted on the stairs. after the realization
The final..and the understander will understand.
This is my professional opinion.
Related to confirm Toriel? Accountant?
Gil Turiel
Great post! Professional writer. It will always be difficult for a number of people to praise.. 1600 houses is super impressive!
two things.
Not sure I would base a value-added model, again 8% for an investor is not a particularly high return.
Successfully
Tal Landes
Great post… A few things:
1. There is no 50% taxation in the country on capital gain
2. It's not clear to me how you come to a negative tax liability in Israel and still leaves you a profit (unless you intended to depreciate)
3. Since the house is out of stock then it is not possible again to extract capital, but perhaps to expand it.
But then the investor is exposed to a loss due to repairs
In your second excel, you specify a full tenant-month tenant finding commission when the first excel did not specify this expense.
Please do not pull me into words because now the smile has also come off my face and I do not want to attach a picture to you how I look without a smile.
Good luck again to everyone
Shabbat Shalom
You're attracting me again so I'm attracted.
In your first excel.
A 691 home loan for $ 250,000 may not only have liabilities, but when there is a loan from the bank, property needs to
I like the floating term.
Let me tell you what it looks like in reality
21600 income
3000 Arnona
1500 Insurance
1728 Management
1100 Wisconsin
450 Tenant Replacement
900 expenses over 5 years in annual calculation
9320 Financing expenses
A profit of 3602 in the best case without the billets and without a second refi which completely erases the profit without a house without a tenant for one month or two months.
That's why you don't pay rent.
Have a Sabbath peace.
I hope we stop here because I have a lot more to write.
Hi there is no need to pay Withholding because my strategy is not based on sales, I am a follower of long-term buying and holding
I repay the loan every few years (on a regular basis), extract money from the bank, and invest again, so that it still remains 30%. Equity In the property always, I do not pay capital gains tax, sales tax or brokerage.
And yes, only Freiars pay rent income! Simple tax planning prevents tax payment on a regular basis. from experience! Sending you an example excel. By the word Freier is for conveying a message
If you're hurt by that then sorry
Good news
Shabbat Shalom
Hello again… Because Lior Lior Lustig the forum moderator does not like answers in private as you suggest, I will ask you again to reply in the forum that other readers can understand the points: 1) You address an Israeli audience, how do you overcome the FRIPTA obstacle with all taxes, the reason I ask You is because your profit (in my opinion and experience) becomes negative, meaning loss !! To the sole Israeli investor, according to the numbers you yourself wrote, 2) I read your response to a friend Yoav Benjo where you wrote and I quote: "Only suckers pay taxes on income from rent", I ask myself if I read correctly or I have a problem understanding- I read, I would love to clarify (again - in the forum, not privately) that I live with a lot of such "suckers" so this is a very interesting point. 3) Try to explain to readers why in a normal everyday reality (up to 3 months ago) you explain that you work on an average rent of $ 2000 per month while I personally (in Florida) can point out that the "break point" of rent is $ 1650 and $ 1800, want to say : Instead of paying 3 months retroactively on the day of the move in the rent is possible for a payment of 4 and a half months to purchase a house up to a price of $ 348000 through FHA, so how exactly does it work? Thank you.
Ben Pinto will read "100 percent in five years"
Yoram will call me first dear brother.
We will talk about it
Avi Weitz Avi Yaacov
Great content
Good post! But I have a question. After five years, let's say you're 50, and take a new $ 200,000 30-year mortgage. Only at the age of 80 will you end up paying it, well after the retirement date. Over the years most of the rent goes to the mortgage payment (interest + principal?) How much do you have on a yearly level of bento? Or in other words, when you retire, say 60, what is your exit plan when you have a lot of homes where most of their rent goes into mortgage coverage? On the other hand, if you do refinance every five years and continue to pay interest only, there is a situation that will also decline in value over the years and the bank will have problems for you.
Another question: You address an Israeli audience, how do you arrange the numbers for them when they are considered FRIPTA? I'm missing something here in my understanding,
Question from experience with similar home prices in Florida: You note that the average rent is $ 2000 per month, on days like theirs I personally put in Florida people on FHA with a 3.5% down payment, their monthly repayment will be equivalent to no less than the rent… Want to say the average of $ 2000 rent is the transition point between rent and purchase…. How exactly does this fit in with the scripture?
????????????
Avraham Gabay
Honey forests
If you mentioned the Corona, what happens with a 30 percent decline in value for your investors? How does it go with raising a 5% asset per year? And after the refinance, a situation was created that the house was worth less than the loan taken out and the bank could demand additional guarantees.
And how do you not pay tax on the immediate profit of the rental?
And when you build a new building you enjoy a 15% difference in the price of a new house if this sale is sold this benefit is eliminated with the introduction of a tenant and after 5 years even with a 5% annual increase, the house as a used house will not exceed 25% on a new house.
To sum up, as you point out, the $ 8 Cash On Cash is not a bargain.
The only benefit of the action to investors is that they pay when the house is ready and then have no financing from the beginning of construction.
The added benefit of having minimal current management as a new home, but even after that added benefit, your profit is 8% cash on cash.
In conclusion
To say that there is no income tax payment on the immediate profit from renting is incorrect.
And to calculate the yield of a future profit of 5% every year as a fait accompli and more in the era of the Corona is really only a hypothesis.
And to put out such a post right now in the Corona period when there are expected to be declines in real estate prices and still talk about a future rise as a fait accompli in this poor even irresponsibility.
Sorry to cool the enthusiasm of the other readers.
Gil was very enriching in depth and fun to read the posts - many successes ????????
Walla Gill played her, a series of posts among the best in this group
Reoot Shayzaf
A fascinating week of insane knowledge and a strong desire to go your own way age. The fun is that there is proof of all the content you have written and that is a great foundation for investors of all shades. Fear = impulse (reversal of letters) and whoever wants a pension must do and fast… with you is this a recipe for sure success ???????? ♂️❤️
Neri Malka
Hi Gil,
According to your example, after five years, I have about $80000 down payment for the next transaction, that is, an amount of about $280000 for the additional purchase of another new house?
So if you want to roll according to this model and rest in retirement ???? As you present, need at least 15 years from now and about five such deals for the period.
I understand it right ?????
Age I enjoyed reading throughout the week! Thanks
Hi Gil, thanks for the posts you upload, they have a lot of information in them that helps to understand how much I do not understand ????.
I have a question that is much more initial. People tend to choose investment zones based on places they know, such as Florida, and so on, and then they begin to decline to test the areas according to the parameters you specify. I am sure that there are countries whose names are not common in our consciousness that the name of return and realization can be just as good and equally safe. Where can I get information about countries whose general direction is growth and development? Thanks .
Great age posts, thank you very much.
Some questions about this post-
1. How do you avoid paying income tax? I understand that there is no sale of property so there is no tax on the profit, but there is a current profit until the refinance is carried out.
2. You wrote in the example that after 5 years there is a 100% return, but in fact there is a return of the fund and not a 100% return.
3. What is the cash flow left on the house after the new financing in such a situation?
Only 43? I thought 23. ????