A reference to a 10% preferred return does not establish the terms or payment security of a particular Tzfat investment. Read the actual signed agreement and offering documents before deciding whether there is an enforceable payment obligation, a target or a conditional distribution priority.
Check the calculation period, accrual or compounding, return of capital, debt priority, management fees, distribution waterfall and the cash or reserves available for payments. Do not assume the developer receives no fees before investors, or that accounting profit alone determines every distribution.
If a guarantee is claimed, identify the guarantor, exact obligation, financial capacity, security, exclusions, enforcement route and applicable law. A preferred-return label does not by itself prove that a bank, insurer or other third party guarantees payment. Capital can remain at risk; due diligence does not eliminate that risk.
For a particular offer, obtain independent legal and suitably licensed financial advice on the documents, counterparty, valuation and risks. This page does not verify that a named project offers 10% or any guarantee.
This is general information, not legal or tax advice; confirm with a licensed professional.
Further reading: SEC general investor education on private-placement risks in the United States. This does not determine which jurisdiction or securities rules apply to your particular investment.
Before committing capital, read our guide to profitable real estate investment in Israel.
Have a specific requirement? Send us your details and the Semerenko Group team will get back to you.
