Alternative asset management: Real estate value-add and Cannabis

we work hard to find diamonds in the rough.

garden.jpg

We believe that constant exploration of real estate opportunities can uncover substantial discounts which provides reliable income and limited risk.

Capital Preservation and Cash Flow

Our investment approach is based on a disciplined due diligence process that measures risk while uncovering the catalysts for value add. The returns that these investments earn for our investors help to secure and grow the assets needed to support savers and retirees.

Disciplined Due Diligence

We protect capital because by following a disciplined approach to real estate analysis and financing. We engage objective third parties and talented management teams to achieve transformative results.  Our specialized Portfolio Management Group helps to maximize value by improving processes across varied elements of a property's lifecycle. 

Leveraged Acquisitions

We have established acquisition financing that allows us to leverage our capital by 5x. Once we stabilize an asset, we seek our long term financing to increase liquidate capital and increase cash-flow. 

 

Thank you for visiting our website. Herzl Capital is a boutique real estate investment firm. We believe that the active investor should be taking advantage of discounted & value-add real estate opportunities, converting them into long term opportunities for the passive investor. 

Since 2008, we pride ourselves on our experience placing capital in real estate assets that are mispriced. We have experience managing properties in over 14 states in the US. We have invested in commercial real estate, as well as residential rental properties.

We believe that the exploration of many real estate opportunities, each undergoing accurate and comprehensive analysis to discover discounts and value-add plays, provide us with above average capital performance and security, at the same time.

Total Purchases, Sales, and Mortgages

Current market value of all properties, as of 2016: $12,400,000

Our Track Record

We have completed over 80 acquisitions, some are buy and hold, some are flips. Below is a sampling of our recent transactions, you may also view our entire track record. We are happy to provide access to our Quickbooks files to potential investors interested in more detailed information.

On average, for every 30 high potential properties that we analyze, we make 1 acquisition that fits our investment model.


New London Professional Park (30,000 square feet office complex in Snellville, GA)

Purchased for $1.26 million, rehab of $100,000, currently appraised for $2.35 million. We increased the occupancy of the property from 50% to 95% in less than 18 months.
Property was acquired with a $600,000 mortgage at 5% APR for 10 years. Our plan is to refinance the property in early 2017. We generated $1,000,000 in value with only $700,000 out of pocket investment; the majority of the down payment was via the sale of another investment property in a 1031 exchange.

The property was bank owned, poorly managed, and had significant deferred maintenance. By stepping in and fixing these problems, we were able to force the appreciation according to plan, and ahead of schedule.

Property website for marketing of leases: www.snellvilleoffices.com


6709 Versailles Court, Lake Worth, FL, 33467 (condo)

Purchased for $61,000, rehab cost less than $5000, sold for $120,000 ($104,000 net at closing), completed within 6 months. We made over $35,000 profit, with only $66,000 invested, that is a 53% ROI in 6 months.


505 Corundum Rd, Trinidad, CO, 81082 (single family home)

Purchased for $102,000, rehab costs of less than $5000, sold for $167,000 within 4 months of acquisition. Over $40,000 in net profit, equal to greater than 35% ROI.


Portfolio #1

6 properties, purchased individually for $583,000, plus $75,000 in rehab, current market value of $900,000 (as of November 2016), a blanket mortgage $500,000 was taken out from a private equity lender, Blackstone Group (B2R).


Portfolio #2

8 properties, purchased individually for $609,000, plus $100,000 in rehab. Current market value of properties in this portfolio (as of November 2016) is $1.1 million. A blanket mortgage was received for $500,000 from a private equity firm, Colony Capital.


Portfolio #3

9 properties, purchased individually for $580,000, plus $80,000 in rehab, current market value of $1.2 million (as of November 2016), a blanket mortgage of $800,000 was borrowed from a private equity lender, Blackstone Group (B2R).

We Specialize in the Following Investment Vehicles

Bank Owned Single Family Homes

Single family homes have long been the favorite investment vehicle for mom and pop landlords. Since 2008, the pool of investors has increased, as institutional investors have built large portfolios. We have developed reliable and fast internal appraisal methodologies, allowing us to accurately analyze thousands of properties.

We enjoy working with this asset class because the time to turnaround properties is relatively quick, allowing us to expand our rental portfolio rapidly. On average, we are able to fix-up, rent out, and refinance or sell a property within 7 months. The demand for single family homes is expected to grow dramatically over the next few years as the credit of borrowers continues to improve.


Value-add & Discounted Commercial Real Estate

There is fierce competition amongst investors for discounted commercial properties. By analyzing many assets nationwide, we are able to consistently acquire properties for less than the current appraised market value. These can be immediately flipped for a profit, or can be refinanced, reducing the capital investment in the property. 

Value add opportunities have an additional component which compensate us for fixing asset and management related problems, optimizing the capital stack, investing in deferred maintenance, and more. Turnaround for value-add opportunities can be 12 months or longer.

Our company is seeking investors to finance our acquisitions and long term holds.

Fixed Income

  • Corporate guarantee backed with real estate assets of the Herzl Capital Holdings
  • CPA audited accounting
  • Israeli trust attorney handles incoming investments (for Israeli investors)
  • We never will borrow more than 75% of the value of our assets, inclusive of corporate loans and mortgages.
  • Optional:
    • Interest only payments, principal paid at end of term.
    • Fully amortized payments, interest & principal paid regularly.
  • Term loans up to between 5-50 years
    • Funds are deposited into escrow, and capital calls are made to fund acquisitions
  • Option for quarterly interest payments or reinvestment
  • Investment made in US dollars

Investors seeking stable, long term, investment opportunities. These loans are backed by the total equity in the combined Limited Partnership assets. The company will not borrow more than 75% of the combined appraised value of assets owned.

In 2016 we paid out over $250,000 in interest payments to our investors. You can receive your payments in the US, or in Israel.

Have questions? Contact us.

Israeli Investors: This is a portfolio interest loan, and is therefore eligible for the IRS portfolio interest exemption. Income is not taxable by the IRS, and does not need to be reported to the IRS.

 

 

Invest in our real estate Holdings

Herzl Capital invites accredited and select non-accredited investors to join our real estate fund. This is an open ended fund which provides dividends that are sourced from cash flow from rents as well as appreciation of assets.

This fund managers and employees are majority shareholders of the fund. We are in the same boat as you.

We target annualized returns of 15%+ for limited partners.

 

Please complete the form below

Name *
Name
Phone *
Phone