WHY MEVO MODI’IM IS RIGHT FOR YOU

Mevo Modi’im (מְבוֹא מוֹדִיעִים) is centrally located in the heart of Israel. It is 30 minutes from Jerusalem and Tel Aviv, 5 minutes from Modi’in and 10 minutes from Ben Gurion International Airport.

After a fire devasted much of the area in May 2019, the Israel Land Authority developed a comprehensive plan for reconstruction and expansion. This plan includes 150 new homes. Our Purchasing group will be entitled to 42 homes. These houses will be a two-level semi-attached house totaling 180 meters (nearly 2000 square feet).

What is a Purchasing Group?

A Purchasing Group (“Kvutzat Rechisha” in Hebrew) exists when individuals form an organized group, the purpose of which is to purchase a plot of land and build residential units for the group members. The group makes the decisions, hires professionals and plays an extremely significant role in the project. This is in direct contrast when purchasing from a contractor (Kablan).

Advantages of an Purchasing Group:

• Savings-There are several advantages when purchasing the land and orchestrating the actual construction through a Purchasing Group. One of the largest advantages is the savings to the group members. The funds paid are used to purchase the land and construct the building. There is no Kablan selling many residential units in order to make a profit. Furthermore, marketing and advertising expenses are minimal.

• Identity – when forming a Purchasing Group, the members of the group monitor the nature of the group and may choose to add members who will create a community with a common denominator.

• Safeguards and Protections – Since the group owns the land, they decide who the contractor will be. The contractor is a hired contractor who is paid only after completion of each stage. If the initial contractor declares bankruptcy or the group is not satisfied with the contractor’s performance, the group may hire an alternative contractor. In this respect the group is protected. Contrast this with a regular “Kablan” deal, if the contractor goes bankrupt, it is often difficult for the buyer to enforce his guarantees under the law.

• Comprehensive Participation Agreement- This document signed by all members, serves as the operating agreement during the process. It details the rights and obligations of the group members, provides a mechanism to resolve disputes between the members, and handles contingencies in the event a member wishes to sell his share or can’t meet his financial obligations.

The price for a 180 square meter du-mischpachti (semi attached) house is 2,650,000 NIS. An initial investment of 20,000 NIS is required from you to join our group. By October 15, 2020 a second payment of 130,000 NIS is due. This is refundable only if our bid is not accepted. Bank fees and charges of approximately 500 NIS apply. If the bid is accepted, the next payment of 1,175,000 NIS is due by December 15, 2020.

We have formed a Purchasing Group (“Kvutzat Rechisha”) for the purchase and construction of 42 units on 21 lots (2 units per full lot). Thus far, members of our group have purchased 35 units. We have firm commitments from several others. There is still time to join our group. Please act quickly.

This is a fantastic opportunity for anyone considering Aliyah or for an investor. To watch a short video, please go to https://www.youtube.com/watch?v=GVFyN6JC3Wo

If you are interested in pricing or any other information, please feel free to contact me at (908) 347-6863 or e-mail at Beneckman.elderlaw@gmail.com.

Benjamin Eckman

Disclaimer: The above is intended for informational purposes and is not intended to serve as legal advice for any purpose.

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