All Forum Posts by: Paolo De Leon

@Celia Fernández Awesome input! I will put all these into consideration and talk to my accountant. Sending you a message

@Erwin Groenendijk Good to hear from you! Thanks for the info, I'll have to be very careful. Does having a bulletproof lease help? Do you use a property management company to handle your rentals or know of a good lawyer that can draw up strong lease agreements?

Hi Juan! I am an out-of-county investor living in Valencia, Spain. I have investments in Las Vegas, Nevada. I am also investing here in Valencia. I'll send you a message. I can share some of my experience dealing with properties, tax implications, and property management. 

Hi Andoni,

Yes, definitely you can do out-of-state investing. Have you heard of the book called Long-distance Real Estate Investing? It's written by one of the BP leaders, David Greene.It's an awesome book and it breaks all the myths/fears about out of state investing. 

Also, I am now based in Valencia, Spain! So I'm proof that you can invest even outside the country. I have a rental in Las Vegas.

Hey Celia,

I am very interested to hear about this as well. Have you heard of La Escuela De Inversion by Haro? I found his channel on YouTube and he mentioned this 8 property loophole as well. I was thinking of scheduling a consultation call with him to find out more. 

Also, do you know if this only applies to companies? Or can you be a "particular" owning 8 properties and still get the tax benefit comes tax season. 

Hi Verity,

I closed on a piso here in Valencia that I was planning on turning into an Airbnb. I had to put down 30% down (non-resident loan) with Banco Sabadell. I had no problems with them except for the notaria. We had to get an exception to sign during the lockdown and let all parties sign the deal with social distancing, masks, gloves the whole shebang lol. We had delays too from the seller, coordinating the signing with the broker. Expect long delays. Who are you banking with?

As for the cash flow, with tourism expected to go down our back up plan is to rent it for 6-12 months then take it from there. Luckily, rent in the area is in high demand. I would check your area for how long it takes to get a good tenant. I would visit 5-6 inmobilarias and ask how long their waiting list is for available properties for rent by the beach. If they don't have a waitlist be careful. It can be difficult to get a tenant if the locals/workers prefer another section of the city, usually towards the center. Hope this helps

Investment Info:

Single-family residence buy & hold investment in Valencia.

Purchase price: $65,000
Cash invested: $65,000

Buy & Hold - Mislata, Valencia, Spain

Current project. We decided to purchase this condo because of 2 reasons; #1 it is on the main avenue of Mislata, walking distance to the subway stop and Mercadona (grocery) and #2 potential for adding a lift (elevator) in the future that will add a lot of equity. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section.

How did you find this deal and how did you negotiate it?

We found this deal by "Walking for Euros" :D Spain's version of Driving for Dollars.

How did you finance this deal?

List Price: €60,000
Offer Price: €60,000
Sold Price: €60,000
Offer Date: September 27, 2019
Closing Date: November 7, 2019
Condition: Vacant 5 years, electricity and water on, original state, needs rehab
Square meters: 79sqm
Year built: 1954
Rooms: 4
Bathrooms: 1
Elevator: No
Parking: Street
Yearly Taxes: €242
Monthly HOA: €20
Home Insurance: €127
Closing Costs Breakdown
Agent Commission: €3000 (5%)
10% ITP Tax: €6500
Notaria/Gestoria: €163
Total Closings Costs: €9663

TOTAL: €69,663

How did you add value to the deal?

The condo will be totally renovated with new plumbing, electric work, flooring, doors, windows, paint, and appliances. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section. We are planning to turn this into an Airbnb.

What was the outcome?

Rehab on the way. We are expecting to finish the project in July.

Lessons learned? Challenges?

Challenges:
-We could have negotiated the price lower but we offered full due to the competition and fear of losing out.

Investment Info:

Single-family residence buy & hold investment in Valencia.

Purchase price: $65,000
Cash invested: $65,000

Buy & Hold - Mislata, Valencia, Spain

Current project. We decided to purchase this condo because of 2 reasons; #1 it is on the main avenue of Mislata, walking distance to the subway stop and Mercadona (grocery) and #2 potential for adding a lift (elevator) in the future that will add a lot of equity. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section.

How did you find this deal and how did you negotiate it?

We found this deal by "Walking for Euros" :D Spain's version of Driving for Dollars.

How did you finance this deal?

List Price: €60,000
Offer Price: €60,000
Sold Price: €60,000
Offer Date: September 27, 2019
Closing Date: November 7, 2019

Condition: Vacant 5 years, electricity and water on, original state, needs rehab
Square meters: 79sqm
Year built: 1954
Rooms: 4
Bathrooms: 1
Elevator: No
Parking: Street
Yearly Taxes: €242
Monthly HOA: €20
Home Insurance: €127

Closing Costs Breakdown
Agent Commission: €3000 (5%)
10% ITP Tax: €6500
Notaria/Gestoria: €163
Total Closings Costs: €9663

TOTAL: €69,663

How did you add value to the deal?

The condo will be totally renovated with new plumbing, electric work, flooring, doors, windows, paint, and appliances. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section. We are planning to turn this into an Airbnb.

What was the outcome?

Rehab on the way. We are expecting to finish the project in July.

Lessons learned? Challenges?

Challenges:
-We could have negotiated the price lower but we offered full due to the competition and fear of losing out.

Investment Info:

Single-family residence buy & hold investment in Valencia.

Purchase price: $65,000
Cash invested: $65,000

Buy & Hold - Mislata, Valencia, Spain

Current project. We decided to purchase this condo because of 2 reasons; #1 it is on the main avenue of Mislata, walking distance to the subway stop and Mercadona (grocery) and #2 potential for adding a lift (elevator) in the future that will add a lot of equity. This is a 4 bedroom we are turning into a 2 bedroom and combining the living room and 3rd room into 1 large family room. The kitchen will be American style; open with a bar table section. We are planning to turn this into an Airbnb.

List Price: €60,000
Offer Price: €60,000
Sold Price: €60,000
Offer Date: September 27, 2019
Closing Date: November 7, 2019

Condition: Vacant 5 years, electricity and water on, original state, needs rehab
Square meters: 79sqm
Year built: 1954
Rooms: 4
Bathrooms: 1
Elevator: No
Parking: Street
Yearly Taxes: €242
Monthly HOA: €20
Home Insurance: €127

Closing Costs Breakdown
Agent Commission: €3000 (5%)
10% ITP Tax: €6500
Notaria/Gestoria: €163
Total Closings Costs: €9663

TOTAL PURCHASE PRICE + CLOSING COSTS: €69,663

Rehab
Labor: €23,000 including windows, doors, flooring and bathroom fixtures
Estimated finish date is in July