All Forum Posts by: Erwin Groenendijk

@Robin Morales regarding Spain you can ask me anything you want. 

Regards

Hi @Marc Garcia, if you like you could come to our following meet up when the quarantine is over so we could meet in person and talk further. We are organizing an event every month in Barcelona. Let's stay in touch

@Louis Lechanteur, not sure. The bank will most likely do due diligence and check where you are officially registered as a tax resident, and if that is not Spain it could become harder to convince them.

We have thought about commercial but for the moment we are focusing on getting new apartments one at a time to our portfolio. There are way more rules and regulations of having a building and renting out per room. Perhaps in the future.

@Louis Lechanteur If you are living most of the year in Spain and paying your taxes here, they will consider you as a resident. Having an NIE number doesn't say that much other than that you will need it for many official things.

80% financing (or higher if you talk with the right people) could be possible if it is going to be your first property, and that you are saying that you are going to live there yourself. So don't tell them that subrenting per room is going to be your idea.

We are now creating a team of workers that is bit by bit taking the management of the properties out of our own hands. Keep in mind though that managing these kinds of properties do come with extra work and sometimes headaches. We still need to be on top of it.

Good luck!

@Louis Lechanteur My advice would be to buy the apartment as a private person, or the both of you together. As a company you might be getting 50% financing (if they give you a loan at all without any history), and as a private person this percentage is going up and based on different characteristics (working contract etc, not sure if your internship contract would be accepted). As a foreigner, you can get up to 70% financing and as an Spanish citizen 80% (or more using a mortgage broker). 

How are you managing to get that amount for your internship by the way? Good job!

We are also focusing on renting out rooms in Barcelona/Valencia, now counting 20 apartments and over 80 rooms. If you ever have more questions regarding the setup, you can contact me.

@Louis Lechanteur, didn't know of Segovia before but it looks great on pictures and it is close to Madrid. I'm sure you will do well. Are there a lot of students? And what are you aiming for to get on rent?

For a business to work, it is important to have things moving in/through your business. Cashflow coming in and out your business from multiple real estate properties, or perhaps other services that you can develop at some point. Have in mind by the way, that for companies in Spain it isn't that easy to obtain financing. Companies need to show multiple records of their activities for a decent time to show it is worth to receive financing. Also only mortgages up to 50, maybe 60% are given to companies.

Hi @Louis Lechanteur, good job and move forward to your first deal. 

What I think @Jaron Walling is saying, is to re-evaluate opening up an LLC for your first purchase and the situation you are in. You can also buy the apartment together and sign an agreement between the two of you. An LLC or SL in Spain or any business set up can be beneficial, although it needs to be able to work as a proper business to use its advantages. Otherwise, it will only cost you money in the beginning while there is no/not much activity yet in the company. As an individual, you can also already apply to several advantages such as deductions, etc.

Where are you btw looking to buy your first property in Spain? We are based in Barcelona.

@Verity Macdonald, our coliving apartments in Barcelona/Valencia. We are aiming that everything is getting back to more or less normal at the end of April/beginning of May. Now, I don't mean that everything as schools etc will open, but at least companies start to open their offices and people are allowed to go out again. Yes, this is going to affect us (and it is already doing), but getting this traffic up and running it will also boost room rentals for us. Until now, we are managing it luckily!

We are btw thinking of organizing our monthly Meetup this month digitally. Coming together to talk about the situation with more people. Might be interesting to also talk about this case.

@Mike Lambert, thanks for your point. Always following your posts on the forums and reading your broad knowledge. Will stay in contact when this is happening. Actually, 1%/1,5% projects are already available, but for that we are busy in the cities surrounding Barcelona. 

@Mike Lambert, 1% deals are not easy to get here in the city of Barcelona (and beach area), let alone 2% deals. 

However, I do follow your reasoning, it is not a juicy project if you look at the numbers That is why I asked you @Verity Macdonald if 750 up to 850-950 are both based on long-term renting. Perhaps considering other strategies to get the income per month up could work

And the 850-950 euro estimation is based on also long-term renting but in a bigger market?