The Overseas Real Estate Investment Method

After several years of real estate activities in Europe, we have developed a unique work method for real estate investments overseas. We’ve formulated a four-step process that increases the chances of finding a winning deal.

Step One – We are proud of our rigorous screening process, carried out by three expert analysts in our Analysis department. We conduct a due diligence audit for every developer, and examine his or her business experience and professional background. A good deal is made by the time of the purchase – so this is a critical stage for the deal’s success. Our goal is to always find investment opportunities offered at 20% to 30% below market prices.

Step two – We conduct in-depth examination of the project’s business plan, verify costs and analyze possible faults and flaws. Only investments that pass all of our rigorous selection criteria are submitted for the approval of the Investment Committee. And it is only after this initial screening process that we offer properties to our investors. We also make sure that there are substantial collateral and sureties for each investment – direct ownership of the property by each investor in proportion to his/her investment, in addition to establishing a separate partnership for each and every investment. All the information is presented with full transparency to our investors, who receive all the certificates confirming their ownership of the company that holds the property.

Step ThreeIn order to make money in the real estate world, returns on the investment must be assured over time. Therefore, we give a great deal of weight to the identity of the tenants renting the property, to make sure that the deal will yield maximum income – with a minimum of operational costs. We review all tenant contracts and monitor tenant satisfaction and their assorted requests. Meanwhile, we also examine whether it is possible to raise the rent, as well as options for renovating and dividing large apartments. It is important to always keep in mind that there is actually a relationship with every tenant, and it should be preserved – this is key to a long-term tenant.

Step FourInvesting in real estate overseas is a long-term relationship. With you live in Israel, and your investment is literally over the sea, you need a high-quality management company and a trustworthy, professional team that you can count to yield high returns on your investment over time. A good deal is not enough – you need a quality partner to accompany you throughout, and give you the comprehensive support system you need for the entire transaction.

We founded Nadlan Germany on the basis of these principles. We believe that success is a function of hard work, honesty as well as luck. We are very dedicated to our clients and appreciate the trust they put in us. In return, we offer them full transparency, high availability and a genuine desire to build a healthy long-term relationship.

Rigorous screening process

A rigorous and meticulous screening process for each and every property. We examine and analyze thousands of properties each year, and from among them select only a handful of genuine investment opportunities.

Thorough examination of the property's value

Through a comprehensive examination of property prices on the same street that is based on taxation data, we ascertain that the price we were offered is the market price and that there is a basis for negotiating. In addition, we obtain appraisals signed by a certified local appraiser.

Trust account

All of the investors' money is deposited directly into a dedicated trust account managed by an Israeli lawyer, in accordance with the provisions of the trusteeship order and subject to an agreement only, so your money is 100% secure and protected.

Predefined management agreement

The management agreement is prepared for investors in advance, in order to avoid surprises along the way. The management company undertakes to manage the property for a minimum of 36 months. The agreement includes a clause allowing the buyer to unilaterally terminate the contract at his/her sole discretion.

100% land registration

Full listing of the property at the land registry in the buyer's name from date of purchase. This is our recommendation for all real estate investments in Germany.

Title Company and Insurance

Legal examination of the property to ensure that the property is free of liens, mortgages and debts. You can purchase the property with no worries.

Comprehensive Due Diligence

Full due diligence examination of the property / project before any investment. This includes rental agreements, inspection of the property by an engineer, "energy utilization" examination (mandatory in Germany), history of purchases and sales in the area, and bank opinion. In short - a comprehensive 360 inspection of the property.

Current data report

Generating a quarterly investor's report for each investor with the full status and information. We also issue an annual report accompanied by a German accountant. We have extensive knowledge of international taxation so that you will pay less taxes and earn more.

Signing of the transaction with an Israeli law firm

Conducting and signing the transaction with an Israeli law firm serving as trustees. The process is accompanied throughout by an Israeli-German lawyer based in Tel Aviv, so that there is maximum availability in the case of any question and concern. We also work with a German notary who accompanies the process.

Things you should know before investing in real estate overseas

Investing in real estate in Israel or overseas?

The decision to invest in real estate stems from a desire to increase revenues, and at the same time to invest money in the most secure channels available. Of course, there are other investment channels, such as investments in pension products or bank saving plans – but these usually offer low returns. In contrast, high yield options, such as investments in the stock market involve higher risks. Therefore, among all these possibilities, real estate investment stands out and has become the most attractive option for the general public. The question is whether to invest in real estate in Israel or in foreign countries, such as Germany?

Germany as a worthwhile investment destination

In recent years, Germany has become a major and much sought-after destination for real estate investment. Israeli investors entered the market after having managed to find particularly high-yielding properties in a variety of cities in Germany. The reasons for his are, inter alia, the economic stability of the real estate and rental market in Germany, which has kept prices extremely low for quite a long time. The result of this trend is relative confidence and assurance in real estate transactions. In addition, it is easy to find apartments in Germany for low prices, compared to the real estate market in Israel. Inexpensive properties offering high returns, with the prospect of continued stability, give Germany a great advantage over other countries on the Continent. But why not check out what is happening on other continents?

America versus Europe and Germany

The great advantage of Germany is its geographical location with respect to Israel. Although, almost everything can now be bought online, purchasing an apartment requires field work. Yes, there are investment destinations in the US as well, but access to Germany, which is just a few hours’ flight from Israel, makes it more convenient and safer for “close to home” investment management. By contrast, investing in the US requires total reliance on management agents, without any investor involvement on the ground.

Real estate investments in Europe

An annual study conducted by the global accounting firm PwC in 2015 found Berlin to be the most lucrative city for investment in Europe. The study was conducted among 500 real estate professionals and experts worldwide. What’s more, the same year saw an increase of three places in Berlin’s ranking in the “Best cities” table, compared with 2014, when the city was ranked fourth in the list of most worthwhile cities for investment.

Why prefer real estate overseas over investing in Israeli real estate?

Real estate agencies in Israel are thriving despite it all. How? Because Israelis, unlike the Germans, view the purchase of a residential apartment as an important and essential objective for family and personal stability and quality of life. Therefore, Israelis wishing to purchase apartments in Israel do so mainly for residential purposes. Another reason for real estate investments in Israel is its importance to Jews from all over the world, who are motivated to purchase houses for ideological reasons. In contrast, people wanting to buy an apartment as an investment that will yield them rental profit presently, and an option for substantial profit from a future sale, will choose to benefit from the apartment prices in Berlin that are so low that they may be able to buy multiple apartments in Berlin for the price of one apartment in Tel Aviv, and earn a decent revenues from all these properties.

The figures are compelling

An apartment in central Israel costs the average investor about five or six times more, compared to an apartment worth half a million shekels in Germany. Rent in Germany is protected by regulations, and the rent cannot be raised beyond a certain rate, and this fact actually makes this income dependable and stable and prevents market fluctuations – making investments safer and more predictable. Furthermore, the majority of Germans live in rented homes, pay their rent on time and tenant turnover is very low. And meantime, in Israel? Even if investors buy cheaper apartments in the periphery and in the center of the country, they will have to deal with payment problems, high turnover and extensive investment in the upkeep and renovation of old apartments. Taking into consideration all of the above, the conclusions are that investment in Germany is suitable for nearly everyone, and especially for those who seek a high return at a relatively low risk level – positioning Germany as a preferred investment channel. We invite you to leave us your contact details – and we will introduce you to quality real estate investment opportunities overseas.
WhatsApp chat