Investing in Spain - What’s your Experience?

[Rick Albert]

Hello All,

As an American, I’m not as familiar with the Spanish market. I’m considering Madrid.

What have been your experiences with investing? Financing difficult? Construction complicated? Tenant laws to be concerned with (I’m in Los Angeles as a frame of reference).

Any and all thoughts are appreciated.

Thank you!

[Erwin Groenendijk]

Exchange rates is a topic that we as investors in Spain couldn't say that much about, however about investing in Spain in general we do know a lot. I too know by coincidence Billy that you are referring to and what I understand from the conversations with him is that it is not the difficulty of Spain why he is still investing in the US, but more his experience and contacts back in the US that is making him decide to stick to the formula that he knows and works for him. 

There are a couple of points that are making Spain an interesting market to invest in:

- there are still a lot of investment opportunities as investing in real estate is not as popular/exploited as in the US

- prices are generally lower than in the US (/or Northern Europe where I am originally from) so the same euro/dollar earned in the US can be put easier to work and more divided into more projects

- if you understand investing you will probably beat the competition quite easy because there are a lot of not well-presented properties for sale and for rent

- good yields are possible with traditional and especially coliving and tourist rentals

- getting financing is easy however for cash-out refinances etc you will need to become a bit more creative

And besides the numbers let's not forget the country, culture, food, quality of life and especially the sun (although in LA this wouldn't be something to complain about either ;-)). Tenant laws are more in favor of tenants and constructions are as simple as it gets if you have a good team.

We are doing multiple flip, conversion, coliving and other BTL projects in the Barcelona and Valencia areas and are finding good opportunities without too much hazzle. We will probably be able to help you out with most of your questions