Bond investments – a smart way to invest in real estate around the world
Bonds are actually an option for a fundraising organization. When the company asks you for a certain investment of money in favor of a bond investment, it actually promises to repay you the investment plus interest, over a pre-determined period of time.
Who is suitable for investing in bond investments?
Such investments are suitable for an initial investment for those who have no previous investment experience.
Such investments are suitable for people who are afraid of risks and prefer more solid investments.
Familiarize yourself with SMI’s bond investment opportunities
We offer two major investment paths according to your needs, a short-term fund and a long-term fund.
Short-Term Fund Path
- semi-annual bond path, which provides payment every six months
- This route is suitable for investors looking for interest rate liquidity
- In the short run, a fixed annual interest rate is set, and the investor will receive 50 percent of the same interest rate without the initial investment.
- The investment in this path is the total fund invested for a period of 3 years, and the remuneration is the interest rate set in advance and is paid to the investor once every 6 months.
Long-Term Fund Path
- 3-year bond track, at a fixed interest rate paid over a period of 3 years
- This route is suitable for people who do not need the fund’s liquidity and it is not their initial capital if they are looking for liquidity.
- In this route, the interest is higher than the short-term principal, so the interest will be paid after a period of 36 months.
How does SMI secure your money?
The funds that are raised for the investments are not deposited in SMI’s account but in the bank account that’s in the attorney’s trust. Any amount that goes out of that bank account is intended solely for the benefit of fund activity / acquisition of assets. Everything is of course backed by invoices, receipts, legal references and official documents.
In addition, the trustee is directed to transfer the bond funds only up to 50% of the value of the mortgaged assets in favor of the bond fund. That is, if we have assets worth 1 million euros, the company will be able to receive from the trustee only 500K euros from the fund money, regardless of the amount of money that exists in the same trust account opened for the benefit of the fund.
The risk that the investor takes is on the profit beyond the amount of the investment since the fund is likely to get back since the backing is in real estate and not in shares on the stock exchange.
What are the risks?
The main risk of the investor is the failure of the project, which will lead to the investor not earning the expected return. Furthermore, the value of the domestic real estate may decline in the most pessimistic scenario due to market fluctuations.
It is important to know that there is no risk to the investor’s money, since the company buys real estate assets, the money always retains its value and all money can never be lost.
In front of which factor in the company is the investor operating?
SMI accompanies the investors throughout the whole process. The investor conducts himself in front of a senior manager on behalf of the company that has decades of experience in the field, throughout the entire investment process until the end of the project. SMI provides available and accessible customer service and provides an answer to any question at any time.
Why invest with SMI?
All the company’s activities are managed in Israel, and SMI is the board of directors of all of its projects and are the first to know and interact with the investments. That allows the company full control over the projects and any action that is taken requires SMI’s approval. This is a huge advantage for investors, who can make an investment in an Israeli home that will provide a solution to any problem or question.
SMI differentiates itself from others as the investor knows in advance what type of investment the bond is intended for – the company only invests in real estate assets. This is different from other entities in which the bond is invested in various types of investments such as: the stock market, currencies, real estate, etc., and the investor does not know in advance where his money will be invested.
SMI takes care of the profitability of your investment from the first moment
SMI’s investment policy in the Euro-Bond Fund is such that the summarization of the terms with the local developers will always allow the ability to repay the bond investors in terms of interest payments.
It is important to know that the company’s acquisition policy is always the purchase of assets from an Official receiver. That means that at the time of the acquisition, SMI is already in a position of profit on each asset.
Interested in investing in one of our investment opportunities? Contact our experts by phone or WhatsApp today.