[RBS] Additional Information RE: Kvish 10 Buyers Group - RBSA

[Buyers Group]

I would like to thank all of those who have responded with enthusiasm to the
Kvish 10 project.

As many inquiries about the project were echoed again and again, I thought
it would be helpful to address some of the "repeats" I have received and
address them, not just one on one, but as well, in this open forum format.

I hope it will help answer the questions many of you may have concerning the
Kvish 10 project.

First, where is the Kvish 10 project?  If you take the shemeshphone and turn
to the back of it, you will see maps of Beit Shemesh and Ramat Beit
Shemesh...on the Ramat Beit Shemesh page look to the bottom right hand
corner you see a green dot facing the direction towards Gush Etzion.....that
dot is a traffic circle...to the left of the traffic circle is Shederot
Nahar haYarden...if you go straight down past the traffic circle...you get
to Kvish 10.  The lands to be developed start from the left of the traffic
circle and will essentially fill the open space between Shederot Nahar
Hayarden and Kvish 10.  That is the location.

Second, what kind of people will be in this project?  Until the group it
formally established, it is not a question I can answer definitively.  That
said, the overwhelming response to date are a religious Anglo Saxon, RBS
Aleph type crowd...many of whom already live close to Shederot Nahar
HaYarden and/or have family in Chutz La'aretz that would like to live close
to their existing family already living in RBS Aleph near the Kvish 10
lands.  The local interest is intense for obvious reasons........ rather
than move to RBS Gimmel etc.  ....you are looking for better quality housing
and layout, but must also remain in the immediate area as you do
not (understandably) want to change neighborhoods, friends, shuls, etc......

Third, how long will the project take to complete?  The general rule of
thumb is 20 - 24 months from the date building permits are issued by the
municipality.  That is the date to achieve Tofes 4.  This presumes
infrastructure is in place by the time the building permits are issued.  To
be on the safer side - estimate 24 months.

Fourth, when will the Michrazim be released?  It can be any week now - but
can be longer...the Michrazim are to be released by the Israel Lands
Authority, and the reason why these announcements are being made now in
advance is to afford enough time to form the right group of people to
effectively bid on the parcels we would be interested in developing for the
group.  Planning in advance is critical for success in the bidding process.
The group will be closed once we have 40 participants....possibly even less
depending on the size of the units buyers want to have constructed.

Fifth, why a buyers group when I can buy from a kablan?  If you do not mind
living with design, size and fit-out a kablan will give you and if you also
do not mind paying the kablan all the profits he will be looking to take in
selling you his paper to buy his apartment, then you should not consider a
buyers group.   If however you are interested in larger, custom type housing
and architecturally appealing floor plans and higher levels finishes for
less than what you could get with a kablan the a buyers group option is
something for you to consider.

This next point is very important...

A buyers group, to be clear, bids on the land, just like a kablan or a yazam
(developer).....you as an individual cannot lawfully bid on a multi unit
housing project...only as a collective organized group can you do such a
thing....so if the kablan or yazam wins the bid then you have to buy his
home/apartment he designs at his prices .......BUT IF YOU WIN THE BID AS A
UNIFIED GROUP, the you control the land, how you design the units as well as
size of the units....quality of build...(and you know your neighbors in
advance) and the "profit" component does not exist because your building for
yourself and not like a kablan/yazam who is building for someone else at the
highest market price.

Sixth, how does the project get financed?  This is a very important point.
The project first requires each member of the group to have enough funds,
pro rata to the cost of your apartment your looking to build within the
project, and that will require putting funds up in trust to demonstrate
financial ability, and second, you will need to get pre-approved by the bank
that will finance the construction of the project as a whole (in this case I
am looking to Bank HaPoalim to consider being the bank for this project) and
the bank therefore will need to assess each member of the groups ability to
pay for their unit and carry any mortgage separate for each buyers apartment
within the project.  this pre approval process ensures the financial ability
of the group to start and complete the project.

Seven, why am I doing this (aside from the typical economics)?  Because
there is a great need in RBS to access quality housing that is also priced
at levels that do not take advantage of the market frenzy....which we all
see happening in RBSA as well as RBS Gimmel.  For that reason as well,
preference to join the group will be given to those who already live in RBSA
and/or have family in Chul that want to come live close to family already
living in RBSA.

Eight, who will run the project? Only highly reputable professionals will be
on the roster to provide the required skills sets to the group, including
project management, architectural design, interior design, engineering,
legal, accounting, bank finance and GC trades to construct at each phase.
You will likely know many of the professionals who will be involved in the
execution of the design and building of the project.

It being close to Chanukah I will leave it at 8 questions and
answers.......for those of you interested in applying to join the group
please send an email to rbsbuyersgroup at gmail.com

Erev tov to all.

Eliyahu (Larry) Pinczower
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