All Forum Posts by: Erwin Groenendijk

Hi @Pablo Kursón López, nice to see you here. 

We can be quick: both of these markets could work. 

What is most important is your capability of getting undervalued deals and with little to no changes being able to sell them for a higher price. 

If you don't have specific inside knowledge or contacts in any of these areas, just start getting to know agents which are usually the most easy ones to find. 

So instead of giving you advice between the two areas (because I'm sure there are successful wholesalers in both of these areas) change your focus on how to become a successful wholesaler in general. 

- Build up an agent network that sends over off-market deals

- Team up with an experienced wholesaler in the area

- Understand construction and easy methods to add value

- Walk the streets and literally call every number that you see on buildings or even knock on doors with bad-looking properties

- Go to local events or meetups to create a network and your personal name/brand

And I could go on like this for some time. 

Hope it helps

I was thinking about my previous reply and need to correct myself. Although multi-family properties is a term used more in the US and converted itself into a proper investment strategy, this is also possible in Spain (or anywhere in the world). You would need to be a bit more creative but for sure possible.

In the private message sent to Adriano, I shared a commercial space that we are converting into 8 tourist units. Meaning that the owner of the property will have a property and license to rent out these 8 units individually per day or months. 

In Spain, this is usually seen more as a barrier as people rather would invest in individual units (less purchase capacity needed), but by rethinking the setup up it matches the criteria of a multi-family deal. Perhaps rather calling it a multi-short/mid-term deal.

Will send you a PM and pick it up from there 

Hi @Adriano Triana, nice to meet on the BP platform.

It depends very much on your knowledge of the market. If you know what to do you are able to find good deals in any strategy here in Spain. It is true that multifamily properties are less common.

What yield are you after? And is it purely an investment or also something for you to live in?

@Linda Weygant 

Yes agreeing with @Montse C. here that this first needs to be discussed by the governing bodies and most likely will get tackled or at least in part tackled as it makes no sense.

Oke yes so we are basically talking about the same thing. 

The accountant offices focused on international clients will offer the possibility to register your SL at their address for a compensation (yearly or monthly).

Regarding these other services, like mail handling, phone assistance, etc., I would advise you to try to manage it yourself to slowly understand the Spanish system. Keep in mind that these offices love to charge you their premium package (€250-€350 and up) while usually, you will be perfectly capable of doing some tasks yourself, especially in the beginning when there are not that many things happening in the new SL. You can simply use a free or occasionally paid coworking space when a meeting room is needed.

To quickly zoom in on needing a meeting room: a thing to have in mind is that meetings here in Spain a lot of times are done during lunch with a decent priced menu of the day (the Spaniards immediately know what I mean). Just invite someone and you are good to go. 

To make it clear here I'm not talking about doing tax filing or similar legal tasks yourself by the way. Those should always be done by a professional representing you.

@Jesus Montero Pleasure. 

Roughly calculate €1500 for Spanish residents and €2500 for foreigners (also having in mind Power of Attorneys to delegate some of the work so you don't need to be here yourself) to set up the SL. From what we have been seeing from the people investing in our projects from abroad is that only to open a bank account they themselves need to be here, although I imagine that towards the future this will be changed as well. 

Monthly operating costs vary between €150-250 based on the amount of work and the type of accountant office you would choose to work with (those focused on foreigners usually charge more).

It is true that in general this is higher than in many other countries.

It is the first time I have heard about the possibility of a virtual office from out of an LLC. What I know is that for doing tangible real estate projects, a Spanish SL is needed as a working entity that holds the asset on its balance. This should be able to be linked to a holding outside of Spain to transfer e.g. dividends, however, keep in mind that other countries will ask you to have substance there for them to approve the holding. As you are living in the US and might this virtual LLC office work, it could be an interesting option.

What I personally do is link the working entities with my holding which is also based in Spain. After paying the company tax in the working entity I'm sending it to the holding as dividend, and there it is exempt from paying dividend tax if I leave it within the holding reinvesting in other projects without taking it out. 

@Jacob St. Martin the property management argument isn't really an argument if you look at the bigger picture that most investors don't want to manage their properties anyways because they are spending most of the time on their main job. So you might be living in the US or in Europe, investment properties are bought to outsource and earn from the cashflow. If this isn't applying to your first investment property, it will apply to your second.  

Hi @Mark Hafner, we are active in the Spanish real estate market and have been developing several real estate projects in the last few years in the Valencia area (Valencia city and the Costa Blanca). Usually, these are interesting investments because of the higher rental yield and cash flow it gives. 

It is getting harder to obtain the licenses though so it is important to do clear checks beforehand.

@Nick Hulsebos you can have a look at Artof.Co and subscribe to their newsletter Everything Coliving. They are bringing the coliving industry together across all continents. We were on their podcast recently talking about ways to finance a coliving business, for those starting and further along the road. 

They also recently opened an incubator program for people wanting to get into the coliving business with one of the modules that is on business models if I'm not mistaken.