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The first charge in the murder of Eldad Perry is the method.

This prevented the next murder

The impossible combination of group organizers such as Perry, of such a large number of projects, together with heavy financing costs and an ostentatious corporate and personal regime that consumes a lot of money every month, have led to complications we have heard about in recent years. Real estate expert Ohad Danos explains

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• Eldad Perry

• Purchasing groups

Danos fan, guest column

Sunday, 17 October 2021, 10:52 Updated: 11:06

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What is certain is that rising real estate prices are raising the bar of deals to the hundreds of millions of NIS and when people in the country are unfortunately murdered due to a dispute over parking, and others in clan disputes, suddenly the surprise becomes why we are surprised at all

The murder of the late Eldad Perry last Friday caught the real estate community by surprise.

And it's important to understand that this is not a good-natured public that does business with long email correspondence and long-distance conference calls.

These are tough field people who face a not-so-simple workforce that builds apartments, government authorities and institutions with impossible regulation, biting banks and unfavorable public opinion, to say the least.

Still, surprise, seepage and shock gripped us.

Quite a few can be blamed for what happened. Is the state that rising real estate prices bring the public to despair and frustration, manifested in irresponsible behavior with their money and taking unnecessary risks, the Knesset of Israel that for some reason, despite the talk and complications of previous ones, refrains from regulating purchasing groups in a way like and maybe, just maybe, as we brutally Friday, protect the group organizers from themselves, or the organizers and promoters themselves, not for the first time fall victim to their success in the personal, but also the first time, tragically so.

what is certain is that real estate prices soaring , Raising the bar of deals to the realms of hundreds of millions of NIS and when people in the country are unfortunately murdered due to a dispute over parking, and others in clan disputes, suddenly the surprise becomes why we are surprised at all.

The late Eldad Perry was a young and charismatic man, talented on every scale and I will add, pleasant walks. The difficult problem he suffered from, it turns out, was the hunger for success and the difficulty of running such a complex and large system. Does as much as he can to compensate as much as possible for whoever was possible and yet, his death does not serve anyone's debt and only complicates and aggravates the problem into which hundreds of his creditors find themselves.

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To the full article

Eldad Perry.

Could the murder have been prevented (Photo: Flash 90, Yonatan Zindel)

The method worked and worked big

Contractors' organizations cried out for discrimination and unfair competition and slowly, loopholes began to close that allowed the big savings for team members.

The tax amendments made significantly reduced the profit margins for members of purchasing groups and pressured the group organizers for creative solutions

The late Perry jumped from his job as a lawyer into the field of purchasing groups, which was at the height of his popularity a decade or more ago. Of young entrepreneurs in the real estate field who have started transactions in the field in full.

What they all have in common - young, hungry and without significant equity, one that can make them strong entrepreneurs and players in the market. For an organization fee of several percent 20% or so) they will do everything for you, it was the product they sold. And the method worked and worked big. Everyone was satisfied. The apartment prices kept going up and the profit grew along with it. The small and young entrepreneurs grew and became more professional. from them.

But in nature there is always a balance. Contractors' organizations cried out for discrimination and unfair competition and slowly, loopholes began to close that allowed the big savings for team members. The tax revisions made significantly reduced the profit margins for purchasing group members and pressured the group organizers for creative solutions. Some became entrepreneurs and others began to find creative solutions to continue the activity and try to continue to create added value for their customers, some due to past successes, became investors not to mention serial fans.

One of the difficult problems after comparing the tax components was to get a hand on the land, which forced the organizers of purchasing groups to offer sums of money that were significantly higher than market prices and to offer apartments at a "final price" lower than the market price. After all, this mathematics can only work in one way. Significant reinforcement of land rights that will result in a reduction in the price paid for each average unit. Anyone familiar with the industry knows that such rights will last for years and it was clear that although team members eagerly sign everything you let them sign before the deal is signed, from the moment of signing the hourglass begins to tick and understanding the long time required to approve each plan ends. And this was still the better alternative, although from it it can be understood that more apartments were sold than there are and this is the basis for the well-known accusation of selling an apartment more than once.

In the less good alternative, the group organizers simply do not have enough people for the high price they have pledged, whether in a tender or an option, and then in order to supplement the equity required to purchase the land, loans are taken from so-called "non-banking entities". , Gray market and private individuals.

The method is to blame.

Building in a purchasing group (Photo: Eran Gilwarg)

What we the public can do

From that moment on, transfers of funds between projects, use of trust funds for non-trust purposes, mixing between the personal and private with the group organizers, taking loans from private parties and homebuyers bypassing the Sale Law, are just some of the ailments created by the method and heavy use.

The impossible combination of group organizers such as the late Perry, of such a large number of projects, together with heavy financing costs and an ostentatious corporate and personal regime that consumes a lot of money every month, have led to complications we have heard about in recent years. mutual non-loyalty, a mix between personal details with the organizers of the group, taking loans from private sources and from home buyers bypassing Sales Law, are just some normal indignities that produced the system and the heavy use made of it.

but over spilled milk there is nothing to cry and nothing ever going to return Eldad The late Perry to his family and children.

What is important is to prevent the recurrence of such cases and possibly, and I do not believe I say this in the context of real estate, even the next murder.

So what can we the public do?

First, buy properties we believe in and not because they are cheap.

Second, if the price of the land is high and the price of the apartment is cheap in a way that the math does not work out - do not touch !, tempting as it may be.

Third, if we have already made a deal to consult a lawyer and real estate appraiser who will check what the organizers plan on the legal and appraiser level and how long the process will take and finally, make sure to get sufficient collateral for all the money transferred, and not a minute later.

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