Episode 11 - Noam Shpalter and Ohad Arad
In this video we interviewed Noam Shefter and Bronze fan About the stories behind his posts as part of the “Entrepreneur of the Week” program which he participated in as part of the United States Real Estate Forum
In the video you can see -
- Who is Noam Shpelter - where he grew up, his wife, children, how they knew each other
- Who is a bronze fan, how he knew Noam and their connection
- Business he founded and the story behind every business
- Focus on financial education - what it means to be a financial education and what it means
- What is Noam's best way to invest long term?
First Post - Real Estate as a Tool to Achieve Economic Freedom
- How to define economic freedom
- What does it mean to be rich?
- What is the “economic freedom number” and how is it calculated?
- Noam explains the sentence - "When there is a target - know the purpose and you can build a work plan to reach it."
- Why Real Estate? Why not invest in the capital market as an alternative? - Noam answers
Second Post - How to Get Assets Worth our "Economic Number"?
- How the hell do 7.5 million worth of assets come to value? Why this number?
- What is a work plan?
- What type of property is right for our goals - "I will invest in assets that" only "let me rent"
- What kind of transactions should you make in the early years?
- Noam gives an example of the first transaction that he entered into when purchasing an office floor - some of what were the details of the transaction, investment and profit and demonstrates thinking outside the box and the need to be creative in our transactions
Third post - What is a “target return” on the way to the goal of economic freedom?
- What is the return we are looking for in real estate deals we make on the way to the destination?
- Why is Noam looking for deals that return at least 15 percent return per year with a target of 18 percent?
- Looking at the annual return depending on the risk and what types of transactions you can find such returns
- From what sources can you get cheap capital
Fourth Post - How to examine a transaction and quantify the risk?
- Why return is always a derivative of risk
- The parameters that Noam looks at before a transaction - Noen will explain to us the importance of each parameter:
- What is the "deal"? Is it an entrepreneurial deal? improvement? Option and sale on?
- What is the amount of investment and financing capabilities?
- What amount should I invest? And what is the expected return on investment?
- What is the amount and cost of funding I need? Do I pledge more assets or financing non-recourse?
- What is “Financing Marking”? Can I meet the refund if something goes wrong? Can I do refinancing if I have no choice?
- Market Price Sensitivity Analysis.
- What is the market price today for historical prices? How many prices went down in the major crises? (In 2008, for example) in this area. How much has the price increase been in the region in recent years? Is there a trend or a moderation? How much does the price have to go down in order for the profit to be “reset” in a transaction?
- Who are my partners in the deal?
- Am I an exclusive entrepreneur or have an affiliate?
- If I am an entrepreneur - do I have the knowledge, experience, connections and financing required to make the transaction successfully?
- If there are partners - who are they? Do I know everyone personally? What is their experience? What is their reputation? What is their "name risk"? The intention is - to what extent their name is based on the market and in general. I mean, would they jeopardize their name and reputation in a failed deal?
- What is the required time span and what are the “time risks”?
- What is the time range for a transaction and what is the time period for similar transactions in the same place and places?
- What is the “risk of time”? I mean - what is my risk in project elongation? If I have financing, will I extend the repayment period? Can I meet the refunds if the period is extended?
- What is the area and the risks in it?
- What area do I work in? Is it convenient for me to access him if I have to go to the property a lot?
- What is the risk history of the region? Are there a lot of real estate deals or few? Are there many more entrepreneurs out there? How many of them have completed similar projects?
- 7. what is the next step?
- The last thing I look at is adjusting the investment to an investor's plan and planning to use to redeem the deal. I mean, I usually already plan what to do with the redemption of the deal, to match everything to our "master plan" on the way to the cause.
Fifth Post - We Finished a Deal - What to do with Profit?
- Are you reinvesting everything? Do you enjoy the profits and only invest the initial capital? - Noam explains what to do
- What to do when we have just received the target return. What to do if we got more or less.
- Noam's opinion - "If you don't need the money, you will reinvest. This way you can "insure" yourself of future returns that will not reach the target, or alternatively shorten the time span to the target. - Noam explains
- “Investment” is defined as a resource waiver today, to enjoy more resources in the future. - Noam explains the sentence
Friday Post - Summary Post
- Money, or assets, is the means and never the goal - Noam explains the sentence
- The importance of a “work plan” is planned, with clear objectives
- Why Real Estate - “Real estate is a very important tool in planning a person's (or family's) investment as it is a long-lasting asset and generates fixed income.”