Has anyone done a BRRR in Europe?

Question

I am from Spain. Living in the US now, planning to go back to Spain within the next 5 years and I am wondering if anyone has experience using the BRrr strategy there.

Erwin Groenendijk · Answer

Hi @Max Alings, yes it is now possible to do the refinancing set-up in Spain. The only thing is that will not allow you to do it as a cash-out refinance, because they only allow you to directly invest the money given in a new property with financing from that bank.

Erwin Groenendijk · Answer

@Joaquin Camarasa, we did some and still doing some projects in Valencia. Once you are there, please let us know. Would be nice to contact in person and share the ideas further. Are you looking for BRRR'ing as an individual or a company?

Exactly, @Gilbert Romaní Roca. There are more characteristics though. Have you guys been talking to mortgage brokers? These brokers can do an amazing job of making things with banks possible that for normal individuals are impossible. Getting the best interest rates, doing (re-)taxations, changing the percentage for a down payments that needs to be paid or for the % in refinancing to get back.

We are actually planning our next meet up in Barcelona about refinancing where a mortgage broker is coming to have a talk. Would be nice to have the both of you there, but will also give you a recap how it was.

Max Alings · Answer

Hi @Erwin Groenendijk,Thanks for your response! So as long as you find the next deal, you can refinance and pour it directly into the next deal? So cool, I just noticed you founded enter coliving. I used to rent a room with you guys in el born a couple of years ago haha loved that place. Would love to pick your brain about real estate investing in Spain. Do you still live in Barcelona? I would like to buy apartments in barcelona and fix them up and rent them out long term or flip them.

Erwin Groenendijk · Answer

Nice to hear 👍 Will reply to you in private

Székely Lajos · Answer

Hi everyone!

I am thinking about it in Hungary middle Europe. I am contact with banks and it seems that the refinance could work, but the interest rate will tend to 5%. I planned to do that in 2023 until I save up for the flat. Afterward I will keep you updated.

Erwin Groenendijk · Answer

Individuals and companies are representing different possible risks for banks to loan money too. Or, in our situation now, to refinance a property with a mortgage/loan.

It is most likely all about track records based on different characteristics. For companies, for example, the length of owning a company and owning other assets. For individuals, employee contracts, other assets, your history of mortgages/loans. Among other requirements of course.

Gilbert R. · Answer

@Joaquin Camarasa

+1 also trying to implement BRRRR in Spain, Barcelona area (Vallès). I’ve been talking to banks about the refi and it does look challenging, although I’d say not impossible. Looks like what makes the difference is having a strong relationship and track record with a bank. For now the bank says they need to know what is the money going to be used for (the central bank may ask), and ‘liquidity’ doesn’t look enough.

Let’s stay connected and share findings..!

Gilbert

Erwin Groenendijk · Answer

Hi @Joaquin Camarasa, we are now busy with the topic trying to figure out the way/contacts via which it is possible to do this. The requirements are different for an individual and companies, of course, but there should be a way. The only thing that lacks for us at the moment is finding that way. I am Dutch and living in Barcelona, so once we know more I am happy to share the information with you. Where are you from originally in Spain?

If others already did this research or even put the refinancing in practice already (preferably in Spain), please reach out.

Erwin

Erwin Groenendijk · Answer

Guys, coming back after having done quite some research and asking around. BRRRR for individuals in Spain is not possible, however, for companies it is if you talk with the right people. Not like 75% as in the US, but you can get a LT(new)V of 50%.

Let me know if I should bring you in contact with our specialized mortgage broker who is helping us out in one of our projects.

Has anyone done a BRRR in Europe?

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