Investment model
OUR MODEL
We leverage our intimate knowledge of the New York Real Estate Market to identify the best investment opportunity. We invest in properties that are well-located with sound physical and economic fundamentals, which gives us the ability to generate attractive levels of return through efficient value add execution and recapitalization or repositioning strategies. Our underwriting process focuses on projects with competitive advantages, which will provide the greatest risk adjusted returns to our investors.
OUR MODEL
We leverage our intimate knowledge of the New York Real Estate Market to identify the best investment opportunity. We invest in properties that are well-located with sound physical and economic fundamentals, which gives us the ability to generate attractive levels of return through efficient value add execution and recapitalization or repositioning strategies. Our underwriting process focuses on projects with competitive advantages, which will provide the greatest risk adjusted returns to our investors.
THE EGC ADVANTAGE
How do we invest together? Here are some advantages
Locating Properties
The company locates prime properties with high improvement potential within a short period of time. The company sends its investors a brief 3-page SETUP defining the investment process.
Analyzing the Investment
The company’s team analyses the investment, both on site and at the office, assisted by external consultants and professionals (contractors, architects, engineers). The objective of the investment is not passive income but selling and generating capital gains.
Due Diligence
The company’s team reviews each property, starting from the commercial and legal status, to current management issues and up to maximizing the value of the property within a certain period of time.
Signing the Purchase Agreement
Before beginning the project, each investor will receive the business plan and updated forecast for the project, up to the day of realization.
90/10 Capital Model
EGC brings 10% capital to each transaction and the company’s managers sign a personal guarantee in order to receive a business mortgage from banks.
External Attorneys Oversee the Transaction
Both before and during the transaction, the attorneys, according to the various real estate areas, oversee the investment, while analyzing the situation as well as the legal risk.
External Accountants Oversee the Transaction
Accountants prepare the company’s reports on a quarterly basis and these are made accessible to each investor. At the end of the tax year, the accountants will file the company’s statements with the tax authorities, as well as to each investor.
Closing the Deal
Immediately upon materialization of the transaction, i.e. selling the property, the loan is repaid to the bank and the invested capital is returned to investors. Only then are profits distributed (possibly including current profits that were not distributed). The transaction is reported by the accountants to the relevant authorities.