All Forum Posts by: Erwin Groenendijk

@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 R.. 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.

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

Hi @John Goldbranson, sounds familiar the hassle of permits.. The same over here! You can read about it in the latest project description that we did in Valencia. Curious if you are financing these projects yourself and where you are originally coming from. Good luck with your new adventures! 

Investment Info:

Single-family residence fix & flip investment in Valencia.

Purchase price: $70,000
Cash invested: $50,000

Contributors:
Adrià Creixell

A former local butcher shop that is being transformed into a beautiful, spacious, light apartment where the old characteristics are being maintained. The apartment is located close to the popular neighborhood Ruzafa in Valencia (Spain), a hip area with a lot of bars, restaurants, and charming artisan shops. The close proximity to Ruzafa is going to be one of our main KPI's to sell the project for the right price.

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

The fact that we bought the property as a former local butcher shop meant that we could buy the apartment for a less expensive price then what is asked normally for a project of this size (100 sqm) and in this Ruzafa neighboorhood of Valencia, Spain.

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

Via a trusted agent of us in Valencia. Listed at 82.000+ we first offered 68.000 after which agreeing on 70.000 in our second offer. Our strength was that we offered all cash and the availability to move immediately. Even though there were other offers, this gave us the advantage of winning this deal.

How did you finance this deal?

We financed this project through our investment community My Blue Bricks. Within My Blue Bricks, we are publishing group investment projects in which our community can take part in. There was a lot of excitement for this project, and within no time we had the amount together. We also always try to invest ourselves +/- 25-50% of the investment amount. This is because we believe in each project we move forward on, and we know that there is sufficient ROI potential to be made participating.

How did you add value to the deal?

Maintaining the old rough characteristics of the apartment, creating a completely renovated modern apartment with light from both sides coming in. An inner lounge patio, a kitchen island, and big crystal slides doors are just some of the highlights of the project.

And we managed to even get a 100 EU for selling the old grinder of the butcher shop second hand! If that is not a deal, what is?

What was the outcome?

We managed to negotiate the buying price for the local commercial shop down to 70.000. Currently, with still having one month to go before finishing the project, we have put 50.000 in for renovations, taxes, commissions, and homestaging services. Especially driven by the homestaging part, we are expecting to finalize the renovation and immediately sell the apartment within the upcoming month in May 2019 for a price of 160.000. This is leaving us with a net profit amount of around 40.000.

Lessons learned? Challenges?

Dealing with licensing for being able to officially transform the local butcher shop to a single-family residence.

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

One of our local agents in Valencia, Spain. Highly recommendable. Reach out to us if you would like the contact details.

Hi Jackline,

There is one close to the other Valencia in Spain. Just a little bit further away ;-)

https://www.meetup.com/Real-Estate-Investors-in-Ba.... 

We will be happy to have you there if you are close once. 

Erwin

Hi @Javier De la Rosa, could you give an idea of what the price range of these portfolios could be? 

@Javier De la Rosa, would be interesting to hear more about them. Did you already share it with @Adrià Creixell? If not, please do with the both of us. 

@Account Closed, Hong Kong, how cool is that. Is that for work purposes or fully focused on real estate? Would like to hear your experiences there and if you see possibilities. We actually met a guy in one of our Meet Ups that has properties in Hong Kong. Would you like me to bring you in contact with him?

In terms of other projects, we just published our latest project in Rubi just outside of Barcelona. We published it on our company website, if you can not find it let me know. 

@Account Closed was having some interesting projects there too. 

@Account Closed, one thing it did for sure is learning us a lot of lessons that we are taking with us with all our newer current projects. Truth is, during the project, it brought us quite some headaches and the big majority of people saying that it wouldn't be possible to finalize the ideas we had. An extra boost when it, in the end, turns out to be receiving positive messages from people with a lot of knowledge about the market like you it seems from your posts. 

Are you also having your own projects?