All Forum Posts by: Erwin Groenendijk

@Warren Talbot that is exactly the way how you will find your formula of success. Unfortunately we don't have contacts in Granada to help. Would otherwise be happy to share them with you.

Could you give a quick overview of average house and rent prices over there?

Erwin

Hi @Warren Talbot,

Quite a story. Thanks for sharing.

We are active in the North of Spain, Barcelona and Valencia for the moment. Not too sure to give you strong advise about Granada. 

Have you been analyzing Idealista? What are the cashflow estimated rates for long term rentals in Granada? What I know is that the house prices in Malaga, for example, are rising as one of the fastest markets in Spain together with Valencia.

Regards,

Erwin

Hi Fernando,

Either as a company or as an individual, you will be paying the profit tax of 19%. This is at least in Spain, and it can go up depending on how much money you are earning. Up to 24% if I am not mistaking. As you are planning to flip one apartment per year, it would not be necessary to open a company for that. But ask a legal adviser that question to be sure :-)

For Portugal questions, I have to again refer you again to @Adria Creixell in that he has more knowledge about  that market.

Erwin

Hi @Fernando Cantini, nice to be reading your plans. In terms of where to invest there is only one answer: it depends. It depends where you know people you trust, people that deliver quality work, and people that can perhaps show you the rules on the ground. There are good opportunities to be created in every of these markets. We decided to run our projects in Barcelona and Valencia, the North-East if the country.

In terms of flipping multiple taxes per country apply. Don't forget that there are still nice gains to be made next to the taxes. In Spain it is 10% when buying an apartment, and 19% over the profit that you are making. In terms of loopholes, there are some. @Adrià Creixell is the one who can explain this best for Spain. Keep in mind though that you need to know exactly what you are doing going this way. Only more reason to find people who can give you the guidelines. 

Are you new into real estate? How did your interest arise?

Erwin

Still in Spain and busy in Barcelona and Valencia for the moment. We are creating flip projects using crowdfunding and the flow we are in is amazing. Think there are opportunities everywhere if you know how, where, and what to do!

Erwin

If there is anything you are having questions about, just ask them. We started like that one and a half year ago in Barcelona, Spain as a foreigner from the Netherlands. Good luck! 

That would also help me out quite a bit. Any advise from your side would be beneficial Jos.

Dear BP colleagues (especially those living in-, from the Netherlands and/or having knowledge of the Dutch tax/legal system),

Background: Since some time now, we have been managing fix and flip deals in Spain (Barcelona & Valencia). The way how we are doing this is with crowdfunding, or making investors 'partners' in a real estate project that they invest in. We are doing this either via a Cuenta de Participation (participation contract; sharing all the after ROI without any guarantee might there be no result in the end) or a Prestamo Participativo (participatory loan; guaranteed ROI with a fixed rate that is significantly lower). As we are now dealing more and more with international investors, the Spanish law forces us to get these foreign investors a NIE (tax identification number) in which we as a company need to pay for. We are keen to avoid that.

Question: Does the same apply in the Netherlands? Do international investors need to have a tax identification number if they invest in a real estate project in Holland? Or is it allowed to use their own country specific one? As I am Dutch myself, I know that the Dutch rules are more liberal as we need to have an open economy to compete as a relatively 'small' country. 

I hope the above description is clear. Advice is very much appreciated!

Erwin

Hi Victor, 

Thank you for sharing your story. Hope everything worked out with your medical treatments. 

What made you move to Silicon Valley, work? And where are you now in your real estate adventure?

Regards,

Erwin

Hi BP community,

Originally, I am from the Netherlands and for approx. three years now living in Barcelona, Spain. Since some time now, together with two others, we started a company buying, renovating, and selling houses in Barcelona and for the moment mainly Valencia (fix&flip). This post is meant to share our tips and tricks how we make the most out of our deals in Spain (this specific one in Valencia), and also very much to ask your opinion and experience how to perhaps do things different/better.

The project: The apartment building is situated in the Tormos neighborhood of Valencia, street Carbonell. The apartment is located within a 15 minute public transport distance to the old city center and also 15 minutes to the beach in Valencia. Our team completely renovated the third floor exterior apartment. The apartment is including a lift and balcony, and in total a surface of 95 m2. Although the apartment is relatively well maintained over the years, the renovation included a new (open) kitchen design, bathroom remodelling, painting of walls, new flooring, electricity structure and interior finishes throughout the apartment.

The renovation lasted three months and the offering of the apartment on the housing site is already 2 months with 3D renter photos, giving us a hot list of people showing interest or visiting the apartment in the meantime. Total investment is 106k and expected selling price is 145k, resulting in a +/- 39k profit. 

Needed: tips, tricks, ideas, trusted contacts, or just getting to know individuals dealing with similar projects. 

Thanks!

Erwin