All Forum Posts by: Erwin Groenendijk

@Lia Martinez like you said some other platforms are really big on it. Are you part of ColivingHub or Co-Liv? I've been meeting some really interesting people there. 

@Randall Re II will send a PM asking a few things more. 

@Mike Lambert, 100% agree with you here. The numbers need to make sense.

@Randall Re II, what would be your strategy investing possibly in Spain? We are doing multiple flips here and can help you with everything you need to know

@Inigo A., curious to hear some numbers. Would that be a yearly bruto renting yield of 10% and CoC higher %?

In Valencia we have multiple flips that we are now finishing (a building and a garage that we are transforming into apartments). After we will focus completely on shorter term rentals with our capital in mainly Barcelona and some in Valencia.  

@Inigo A., could you give an example of this? We are mainly active in the Barcelona/Valencia and surrounding areas.

@Antwon Davis, the start is always the hardest and you got over that step. Once you got this one operating the next one will be easier, and after your tenth, the economy of scale is more and more kicking in.

Investment Info:

Large multi-family (5+ units) other investment in Barcelona.

Purchase price: $75,000
Cash invested: $75,000

Contributors:
Adrià Creixell

Property managing a building in Poblesec, Barcelona (Spain) with 13 apartments and 35 created rooms where we are applying coliving. Every apartment has 3 rooms and including furniture, weekly cleaning, high-speed internet, maintenance, and community events for the tenants. The apartments had 2 rooms and we created another room to boost the ROI on the project as a whole. The building comes with a rooftop for the tenants and a basement floor in which we transformed into a coworking space.

What made you interested in investing in this type of deal?

Being able to apply coliving - renting out rooms and boosting the ROI of property managing real estate projects.

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

Online ad on Spain's listing site called idealista.

How did you finance this deal?

Partly own investment and partly private investors.

How did you add value to the deal?

Coliving - renting out rooms and boosting the ROI of property managing real estate projects.

What was the outcome?

Monthly costs around 14k and income around 19-21k.

Lessons learned? Challenges?

- Managing big amounts of furniture ordering
- Maintenance request
- Managing a community of tenants living at one spot
- Maintaining a high occupancy

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our agent that provided the project.

Just got back with the call with Robert and we went through the numbers.

In summary, if everything above is correct the BRRRR method makes sense in Spain if you manage to scale up with your 2nd/3rd or 10th property. The higher value or at least the value of the last refinanced property the consecutive properties will have, the easier it gets to play within the 60% combined LTV that they are willing to finance.

And, coincidentally, this is normally what we are after for in doing more projects right?

Hi @Gregory Lopez, I recently joined Ricardo's group and there a lot of people that are helping each other out. So yes would advise to start connecting there with as many people as possible.

Will send a PM sharing the Meetup group that we are owning and organizing a monthly event. Where are you located?

Are you all in a network coliving group? We just joined the Coliving Hub and searching for partners in the coliving world to exchange knowledge and ideas as we are active in Spain (Barcelona and Valencia for the moment). 

@David Lowe, how does your portfolio looks like for example - are these individual apartments or a complex of apartments together?