Rental Property Investor · Dubai · Member since 2017 · 29 posts · 7 votes
Looking predominantly for investment-focused real estate agents who understand passive income and the importance of yields.
I'm an investor looking to gradually build a portfolio of 10-15 low-cost properties in Europe. The countries I prefer are Spain, Italy, Portugal, France but I'm open to all of Europe, really.
I would prefer Spain or Italy, as it is easier for me to get finance in these countries. However, I would consider other countries and explore their financing options.
The plan is to acquire €40-60k properties to slightly refurbish and rent out (either long-term or Airbnb, if allowed), to produce passive income.
I have a pool of potential investors around me who will be joining as soon as we prove that a few deals are working. So I'm looking for an agent to build a long-lasting relationship with, not a hit-and-run type.
Looking forward to getting some intro!
P.s. I'm entirely new to the field as I run a successful Airbnb rental (I'm a Superhost).
There is no such thing as a multi-country agent. Agents are local, which is normal because an agent has to know his market upside down. For example, while the Costa del Sol in Spain is pretty much a homogenous market, you'll be hard pressed to find an agent covering the whole coast; they'll mainly cover their town only. If you can't find an agent covering the whole Costa del Sol, you won't find any covering the province of Andalucia, the whole of Spain or the whole of Europe.
Also, agents get paid by the commission. There's not much money for them to make in very cheap houses. An expensive house takes the same amount of time for them and bring several times the commission.
I love your idea and it sounds sexy and exciting. Is it worth the cost, the complications and the knowledge you need to acquire though?
I hate to be the party pooper but I hope this helps you asking yourself the right questions to put your plan into practice. When I bring potential problems on the surface, I like to be able to offer solutions to go around them. However, it's a bit difficult in this case since I don't know what your objective is.
Hello @Daniel Rongo, I live in Munich, Germany, but I am Italian, and I own a few properties in the north of Italy (Lecco and Udine provinces).
My target/budget is pretty similar to yours. I look mainly for deals under foreclosure with an all-in budget of 40-60k, with an ARV (after repair value) of at least 20%+ (to get finance "easier"), and an NOI (net operating income) of €100+ (which is not easy in this price range, so I also consider €50+). Those numbers should be sufficient to provide a CAGR (compound annual growth rate) of 8%+ in 10 years, which is also my target and pretty good for EU low yields.
The last deal I bought for 20k1 spent around 18k (+ a lot of sweat equity), and it got appraised for 60k. I just finished the refinance of 70%.
The Lecco's properties I manage "myself" (actually is my family there, based on a process I am developing). In Udine I have a real estate agency and some contractors. Property management is also not a big thing in some regions of Italy. Agencies usually only advertise and sign the lease for you — no property management at all.
As you can see, I am not an agent, but I do understand passive income and yields. I am not sure how I can help you now because wholesaling is not "easily/cheaply doable" with Italy's foreclosures. I could give you some resources and websites listing foreclosures, but it would be hard for you to participate in the auction. I am also not planning to sell any of my properties soon. I will think about something else.
On the other hand, if you are also looking to invest as a capital investor, I am looking for private capital to finish the other 4 apartments I have bought recently.
This is an appetizing pursuit, @Daniel Rongo! What draws you to Europe in general for this?
Hey Will. Mainly the fact that I'm based in Europe, and mentally it feels that I'm investing "at home". I know, it is a psychological constraint, mainly. Funny enough, my current rental is based outside of EU and it works great.
I was interested in investing in the US at some point, your deals look much more appealing than here in Europe. But I missed finding a guide to get to that market.
I am a property manager and manage customer's portfolios as well as our own portfolio (residential and commercial). I do understand "passive" income quite well, although real estate is not that passive unless you have someone doing the dirty job for you.
Although I'm personally trying to expand my own portfolio, currently I'm more on a "wait and see" stance. Our typical property management customers have 10+ properties.
Happy to discuss more in detail if there's any sinergy we can work on together.
There is no such thing as a multi-country agent. Agents are local, which is normal because an agent has to know his market upside down. For example, while the Costa del Sol in Spain is pretty much a homogenous market, you'll be hard pressed to find an agent covering the whole coast; they'll mainly cover their town only. If you can't find an agent covering the whole Costa del Sol, you won't find any covering the province of Andalucia, the whole of Spain or the whole of Europe.
Also, agents get paid by the commission. There's not much money for them to make in very cheap houses. An expensive house takes the same amount of time for them and bring several times the commission.
I love your idea and it sounds sexy and exciting. Is it worth the cost, the complications and the knowledge you need to acquire though?
I hate to be the party pooper but I hope this helps you asking yourself the right questions to put your plan into practice. When I bring potential problems on the surface, I like to be able to offer solutions to go around them. However, it's a bit difficult in this case since I don't know what your objective is.
I know a guy in Southern France, my dad used to do business with his parents and I'm dealing with his brother now. Not sure if "his" region has high yield properties (I'm there more "for fun"), but I can always connect you