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The safest investment in the real estate world today - Buying a commercial property from a bank - Walla! Good to know

2019-12-02T17:33:06.268Z


This is a one-time dream deal - the purchase of a 1,200-square-foot commercial complex in the Cleveland metropolitan area, without dealing with business management. And the seller? A bank that operates a branch on ...


The safest investment in the real estate world today - buying a commercial property from a bank

This is a one-time dream deal - the purchase of a 1,200-square-foot commercial complex in the Cleveland metropolitan area, without preoccupation with running the business. And the seller? A bank that operates a branch on the site and is committed to continuing to rent until at least 2034

Looking for the safest investment in the real estate world today? At Rilco, they found a one-time dream deal - the purchase of a 1,200-square-foot commercial complex in the Cleveland metropolitan area - in a suburb where the population is characterized by a very high socio-economic cut. The center was built in 2006 and is now owned by a local bank (First Federal) which also operates a branch which it commits to continuing to rent until at least 2034.

How Safe is the Investment? In fact, they purchase the commercial center from the bank, while pledging to continue to lease the branch, which makes up 30 percent of the entire commercial center area, in the next 15 years. Another major tenant in the center (about 40%) is AT&T, the largest telephony company in the United States, which has an additional eight-year contract and a five-year extension. The additional tenants at the center are signed to an additional six-year lease with an option for another 5 years.

Investors in the project are expected to have negligible current expenses, given that the center's tenants sign contracts that oblige them with current expenses and repairs, so that investors will hardly be concerned and will only be left with the highest quality and safest real estate transaction.

A 1,200-square-foot commercial complex in the Cleveland metropolitan area (Photo: official website)

This is not the first time that Rilko has been able to find great deals that other U.S. real estate investment funds have missed. This happens thanks to a team of analysts and field people in Cleveland who find the most attractive deals. Over the past year, the company has boasted more than a hundred transactions of multifamily assets and private homes that have generated handsome returns over the years. At a time when other companies are having trouble finding lucrative deals, they find their assets under the radar and help make any investment particularly lucrative.


Investment Benefits

1. Purchase directly from the owner with no middle brokers.

2. Zero Engagement in Asset Management - A local management company, managed by the local partner in the United States, is responsible for all of the property's ongoing operations.

3. Hire long-term contracts with a commitment of at least 6 years ahead.

4. Class A commercial center with Class A rents.

5. The local partner undertakes to invest his money, together with the investors under the same conditions.

6. The profit of the local partner will be reflected only in the realization of the property in the future, when the center is sold in a few years.

7. The tenants at the center are confident businesses that are not affected by the online commerce development and are unlikely to lose customers due to the switch to digital purchasing.

8. The investment term is for six years. During the period the investor receives fixed current income and exits after the sale in 6 years.

9. Cleveland has been voted one of the best real estate investment cities in the United States for three consecutive years.

10. Demand for Rilco's projects is particularly high as a result of the rigor of choosing the right projects, with strong tenants in long-term contracts and with particularly high potential for improvement.

To get more details on the best deal you make in the next few years in the U.S. - leave details on the attached form

Source: walla

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