FAQ

1. 177% profit sounds too good to be true. How can you claim there is 177% profit?
a. Profit is always a matter of calculating your total income minus your total expenses. This gives you your profit. Today we know what our expected costs will be: price of land, architects, legal fees, overhead, etc. We also know how the current price of similar projects in the same area. Our calculations are always based on current market prices and not what we think they will be in the future. Our calculation is based on real values and numbers that exist right now. Since we expect to start selling next year, we do not know exact selling prices, though it is clear to everyone in the real estate field in Bulgaria that prices will be much higher as we see happening already in Plovdiv. Still base our expected profits on today's selling prices. This is exactly how we arrive at the expected 177% profit.
 
2. Which guarantees do I have?
a. All investors receive actual shares in the Bulgarian company. They have equal voting rights just as do the company founders.
b. The contract guarantees that all investors receive a full return of their investment before any profits are divided amongst shareholders and founders.
c. All investors receive quarterly financial reports.
d. All investors have the right to full transparency as guaranteed in the investor's contract.
 
3. What is the minimum and maximum sum I can invest to be part of the deal?
a. Minimum: 29,700 euro (about 150,000 shekels).
b. Maximum: 217,800 euro (about 1,100,000 shekels).
 
4. What involvement do I have in the investment?
a. The investors do not have to be involved in the project since we take complete responsibility for all stages of the project, including selling the project and management after the project is finished. However if investors have experience in the real estate or building field, we welcome their professional opinion and involvement in the project.
 
5. Do I receive an apartment for my investment? What do I get?
a. You receive profits from the whole investment project. You do not receive an apartment for your investment. This business opportunity allows you to enjoy from being part of a large and profitable investment project. The investment money is used for purchasing the land and for receiving the building permits. This means that the investor buys a percentage of ownership in the company, or in other words a percentage in the whole company's profits. The investor receives company shares according to his investment and receives profits from the whole project according to his share.
 
6. Why do you use investors' money? Why not just take a loan from the bank? Why would you give up 60% of the profits to investors?
a. This is the basis of Naftali Halevi's, HGS CEO, philosophy. The founders will earn less but it Turns the real estate project into a very low risk project.
b. When entrepreneurs purchase land for real estate development, they do not know exactly when they will start building. There are many factors which influence the decision to start building, for example the time it takes to get your building permits, the changing real estate market, etc. All real estate developers who take loans from bank in order to buy land for development purposes know they are entering into a very high risk situation since from the moment they take the bank loan, they must pay the bank large sums of money every month in order to pay off the loan. We saw how this worked in the past three years during the world economic crisis where thousands of real estate developments went bankrupt for exactly this reason. They purchased land with bank money, and when the world recession hit, there were no sales and the developments had no money to pay the bank the monthly payments. They went bankrupt and lost the projects. We do not want to be in that situation. We prefer to earn less but we also completely avoid this risk.
c. We solved this problem by using personal and investors' money. We had to give up on 60% of our profits, but it also safeguards us from any financial pressure from the banks. This allows us to maximize profits by selling and building when the market is strong while at the same time safeguarding our investors money. This way of real estate investment funding proved to be successful for our investors. While many development companies around the world went bankrupt during the world recession, we continued working and developing our projects. The founders will earn less, but we know the investment is safe.
 
7. Can we speak with investors who already invested with you?
a. Of course.
 
8. How much in taxes will I have to pay?
a. Bulgaria has an excellent tax structure for investors. It is the lowest taxation in all of Europe.
b. The tax on the profits in Bulgaria is 10%.
c. The dividend tax is 5%.
 
9. When will I receive my profits?
a. HGS has an expected time schedule, but since our economic philosophy is to maximize profits while making sure the investments are safeguarded, we will recommend starting the building process at the best time and not to take unnecessary risks. We expect to receive our building permits within one year. We would like to start selling in one year. Within one year of selling, we expect to return the entire investment to the investors. During the second building year, we expect to pay out most of the profits, At the end of the project, in the 3rd year we expect to divide the final profits of the project.
 
If you have any more questions, please feel free to call Barbara +972-50-7235981 or email your questions to [email protected]