All Forum Posts by: Erwin Groenendijk

@Chris Sieradzki Yes Barcelona, in fact, our monthly event is tonight so feel free to join us if you can! 

Hi @Jessica Ponder, where are you moving to when you are coming to Spain? We have an active group in Barcelona with whom we meet once a month with events and networking sessions. You're welcome to join or to connect from a distance 

@Andrea Manica we just finished the 300m2 garage project and now selling the last unit. The project makes sense and changing commercial spaces to residential ones creates margin, just keep in mind that these projects take longer than normal 'simple' apartment renovation. We have had quite some delays and hick-ups along the way as you can also see from the date of the earlier messages in this thread. 

If your capital is secured for a longer time and there is no time pressure, go for it. If you have more time constraint or want to go faster, you could potentially consider buying a to be renovated residential apartment. Our residential projects in Valencia tend to be easier and faster.

Also keep in mind the distance and (if I understand correctly) that it will be your 1st time investing in Valencia. Considering partnering up with someone could be another option to deal with this.

Hi @Rodrigo De la Maza,

Good to hear that you are coming to the beautiful country of Spain! I'm sure you will like it here, and will recall later the saying that it will be hard to leave the country as it is really comfortable.

First, let's go to the basics because you are asking a very broad question here. Flipping homes, applying airbnb, and buying commercial properties are three different worlds of real estate investing that each comes with its opportunities/difficulties. My first advice therefore would be to start focus just on one of them. 

Then, do you have experience in real estate? Each of the three options can be profitable if you understand it from previous experience. Also, do you know where you would like to invest? That is influencing which options to choose as well.

We have been applying all three of them here in Spain and, to be honest, we couldn't advise you any of them to be better than the other. It is based on your contacts and your strategy.  

Erwin

BRRRR is (almost) impossible in Spain. Especially due to the '07-'08 financial crisis that hit Spain very hard. I´m saying almost because if you know the right bank branch and the right person in the bank, it still might be possible.

They are forcing you to immediately finance the refinanced money in a new property for which it gets stuck and you can not repeat the process as they can in the US (and I believe the UK as well). 

Hi @Ferran Miret, on Idealista you can search for the previous selling prices of properties.

Keep in mind though that of course the real selling price sometimes is differing from the idealista prices caused by negotiations. 

Let me know if you couldn't find it

Hi @Michael DiNuzzo, investing internationally in Spain is not that different from investing as us from out of Spain. The only thing to have in mind is that as a foreigner you can not borrow the same amount as residents can (70% vs 80%), the distance and therefore having a strong management set up in place, and the tax consequences from out of the US as (if I am not mistaking) you are always bound to pay your taxes in the US as an American citizen.

All other details like contacts (agents, contractors, architects, banks, mortgage brokers, etc) we can help you with as we are active with multiple projects in the Barcelona/Valencia area. 

@Carlos Bautista, btw, I'm now thinking. Why not join us the group that we created so you can ask this question and get responses from multiple investors in the Barcelona area? We are organizing monthly meet up events (currently digital) and I'm sure you will get a direction there. Will send a PM

@Carlos Bautista, it depends a lot on your preferences/strategy.

Do you have a clear idea of what your budget will be, how far away from Barcelona you would like to live, with what characteristics you will feel most comfortable, etc. 

Badalona could be a good idea if you are searching a location close to Barcelona and reachable with metro, or for Tarragona the same story a bit further with train. Also Sant Cugat is a very pleasant place.

Hi @Brian Cazana, I'm not Spanish originally but now living and investing here in Barcelona for more than 5 years. 

With the 50% downpayment you are referring to legislation from out of the US I imagine?

Because here in Spain residents normally need to pay 20% down (could be lower if you talk with mortgage brokers), and as a foreigner it goes up to 30% (again, this could be lower if you talk with the right people).

We have been assisting quite some international people in their process of investing in Spain so let us know if we can be of any help regarding how to do it.