Strategy - Artzeinu.com | Israel Land Deals

The Details

We offer the opportunity to invest in non-Jewish-owned agricultural land, with an initial investment in one dunam (1,000m²) priced at 1,500,000 NIS, requiring only a 10% down payment (150,000 NIS). Once the transaction is approved and the land is registered under Israeli ownership, the property’s value can increase significantly, with post-approval values ranging from 3,000,000 NIS to 3,500,000 NIS per dunam.

Once the transaction approval is granted, a 2-year process begins to obtain zoning changes, which allows for the construction of 12 apartments of 120m² each per dunam. Typically, investors sell their property to developers in exchange for 30% of the newly constructed apartments, fully built and paid for.

Strategy Options

Scenario #1

Sell holdings post approval and land registration.

scenario #2

Pay the Remaining 90% to Complete the Purchase

scenario #3

Sell 45% of your share to cover the 90% payment

Scenarios

Scenario #1: Quickest
Sell holdings post approval and land registration

An investor who initially paid 1,500,000 NIS for a full dunam sells their entire holding upon final approval. With the market value of a registered dunam ranging between 3,000,000 NIS to 3,500,000 NIS, the investor would sell their holding for a profit of 1,500,000 NIS to 2,000,000 NIS, resulting in a 100% to 133% return on their initial investment.

Scenario #2: Most Apartments
Pay the Remaining 90% to Complete the Purchase

An investor who initially paid 1,500,000 NIS for a full dunam receives 3.6 fully constructed 120m² apartments upon final approval (30% of 12 apartments). With each apartment valued at 3,000,000 NIS, the total value of the investor’s holdings would be 10,800,000 NIS, resulting in a 620% return on their initial investment.

Scenario #3: Largest Return
Sell 45% of your share to cover the 90% payment

An investor capitalizes on the significant price increase between the pre- and post-approval stages by strategically selling just 45% of their holdings at the appreciated value. This selective sale generates the necessary funds to cover the remaining 90% payment for the 1,500,000 NIS property while allowing the investor to retain a substantial stake in the project.

By investing 150,000 NIS for 55% of a dunam, the investor ultimately secures 1.98 fully constructed 120m² apartments—equivalent to 30% of 6.6 units. This results in a total investment value of 5,940,000 NIS, reflecting an extraordinary 3,960% return on the initial investment.

This strategy works by leveraging your 150,000 NIS down payment to secure a 1,500,000 NIS land investment. As the land value rises post-approval, this price appreciation enables you to fund the remaining balance while securing a share in the fully developed apartments—all with minimal capital upfront.

Risks And Risk Mitigation Strategy

Risks

a) Legal Challenges
Occasionally, the properties we focus on may face legal challenges, such as petitions from unknown heirs or disputes regarding the rightful heirs of the land. To mitigate this risk, we work closely with our Christian Arab partner, who has a proven track record of bringing us high-quality properties with a strong success rate..

b) Political Risk
As these properties are located beyond the Green Line, they may be subject to potential political risks and adverse decisions. However, the current political climate is generally favorable toward such transactions, reducing the likelihood of negative developments.

c) Trust and Transaction Security
Like many real estate deals, these transactions require a high level of trust between the parties involved. The process is secured through a contract with the sale facilitators. It's important to note that these transactions are not governed by Israeli consumer real estate laws, which may differ from the usual protections that apply to standard real estate transactions. To further minimize risk, Artzeinu only facilitates deals with sellers whom we know personally and have built trusted relationships with, having invested with them in the past.

Mitigating Risk through Diversification
One effective strategy to minimize risk is to divide an investment across two properties. By spreading the investment, you increase the chances of success, as it improves the likelihood that at least one of the transactions will be approved. For instance, if the chance of success for each individual property is 65%, the overall probability that at least one of the two properties will succeed is 87.75%

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