All Forum Posts by: Erwin Groenendijk

Hi @Joaquin Camarasa, hope everything is fine.

Investing with a vehicle like a Spanish SL (equivalent of an LLC in the US) would be interesting to research as from that moment it doesn't matter if you are a US citizen or living still in the US. You will be able to buy from that company just like any other company in Spain.

Keep in mind that when wanting to do this with a mortgage banks first want to see substance and at least one yearly balance statement. So this requires some upfront planning. Without a mortgage, you are good to go from the beginning. As a company, the first two years when making a profit the company tax is 15% and from the third year onwards this becomes 25%. 

Sounds interesting. We tried to buy some foreclosures from the bank some time ago without success because quite some time the municipality holds the right to be the first buyer and purchase the property for the price you agreed it to buy for. 

NPL sounds like bigger deals so it might work differently. Or is it the same?

What would you call this in Spanish?

NPL as in non performing loans? Would that be contacting banks and requesting lists from them?

So 147.000 total costs with 21.240 gross income would give you ~14,4% yield

And with 11.640 net income ~7,91% yield.

That is a good deal and worth to be repeating 

And what would that be in % compared with the purchase price/total costs of the project?

Hi @Naima Zodros, congrats on the flip 👍. What are you estimating in terms of gross- and net yield on your student rental deal?

Hi @Ruben Garrido, send over a message and let's pick it up from there 👍

Hi @Asif Ali Kabiruddin Rajani,

What we hear a lot from other Americans is that real estate opportunities tend to cost less here in Europe (especially in countries such as Spain where we are active).

A thing to keep in mind though is your tax planning as you will still need to pay taxes based on the US guidelines if I'm not mistaken. 

Search for international people who can explain not only the basics but also culture and expectation differences.

Erwin

Couldn't say it better @Michael Baum.

They don't seem to realize that Barcelona is a world city and that in world cities prices for living in the center go up. Same for Amsterdam, New York, or any big city in the world. 

And I doubt taking out around 10.000 tourist apartments will bring down real estate prices because it hasn't been going down since they stopped giving more licenses a couple of years ago. Again because of the same reason.

The real problem is that more (social/medium priced) housing is needed which the local government hasn't been investing in for the last 1/2 governing period. Their tendency has been to limit activities instead of increasing stock. Madrid has been doing this a lot better for example (the difference between a left and a more right business-oriented governing body in charge). 

It is also important to accept that living in the center of a big city is getting more expensive and that, for the same price, with time it is only possible to live in the 2nd/3rd tier neighbourhoods. 

The economy never stands still and you can not go against it. Even with these limitations.

Hi @Ajwang Rading, you are referring to US lenders correct? There might be some alternative lenders here in Spain also open to finance the project.