High Yields with Property Guarantee
EXCELLENT LAWYERS AND ADVISORS AT YOUR DISPOSAL
The business consists of offering private loans with property collateral, loans to a maximum of 33% of the value of the property, which we previously analyze with our scoring to offer maximum guarantees to the investor.
We have a high demand for secure operations.
We generate for the investor a commission between 10% and 15% of estimated profitability, with returns between 3 and 12 months, which means that the profitability can be even higher depending on the time of recovery and the possibility of reinvesting the recovered money.
Our recovery ratio of the loans granted are very high, around 98% due to a scrupulous selection of the files processed, in the case of executing the property, the investor would at least double his investment.
Complete Information and Procedures
Steps to follow:
LEGAL ADVICE
The legal concepts involved in this investment sector are not complex in terms of their procedures, we can offer support through our team of highly specialized professionals, which would speed up the operation; it is also optional that the investor chooses his trusted people or lawyer to intervene in the loan process, making them participants in the entire documentary and legal process, in which case we would have to contact them, assuming on our part the professional fees that we would agree.
NOTARY
We recommend to use our professionals, because they are specialized and perfectly know all the ways of the procedure that allow to speed up the operation due to their specialization in the investment sector. If the investor decides to choose his trusted Notary, he would have to contact the Notary to send him a copy of the legal body of our deeds.
BANKING INSTITUTION
Not all banks are suitable to operate in this sector, we always recommend a bank preferably a savings bank, our assessment is that banks have more infrastructure and greater agility in the issuance of bank checks, power of attorney, etc.. It is also advisable to open a new account in order to use it only and exclusively to make payments and collections of all investments made, once all parties are up to date and a working system has been defined, it would only remain to deposit the capital in the newly opened account, always in the name of the investor, since we ARE NOT DEPOSITARIES.
The following must be taken into account:
EFFICIENT MANAGEMENT OF THE ENTIRE PROCESS
One of the handicaps of this type of investment is that the processing time between the acceptance of the client’s conditions and the signing at the notary’s office must be as short as possible. The same need that leads the customer to accept this type of conditions is the one that in most cases demands an immediate solution. Therefore, prior preparation of the above steps is necessary.
For the sake of speed, once we have a complete file, verified and accepted the conditions, we send it to the investor. At the same time, we organize the signing with a notary and subsequent request for bank checks.
Depending on the location and availability of each investor, a protocol is established to visit the property, manage the issuance of the means of payment and the signature at the Notary (the investor can attend, grant powers of attorney, use a verbal representative…).
STEPS TO START INVESTING
UNDERSTAND THE BUSINESS
As we have said, it is not about the real estate market, we have to explain that what is obtained is a high profitability to solve debts of real estate assets that at the same time will serve as collateral, constituting guarantees on them that could be considered as triple AAA.
THE STAGE MUST BE SET TO START INVESTING
In order to sign in the short timeframes (around 7 days) required by private equity to be competitive, we must prepare a scenario. It is necessary to know with which notary we are going to work (if we have not signed with that notary, surely we will need a few days for that notary to adapt to his criterion the minutes of the right of purchase option that we use). If the investor has a lawyer, we will also have to present the work system.
VISIT TO THE PROPERTIES
The investor has to understand that, in some occasions, especially for the possible remoteness of the property it would be complicated to visit it, we have a team of appraisers with which we cover all Spain, it is never signed without a previous visit, it is also possible if the investor could not cover a visit in time to designate someone to represent him and so do it.
PREPARE MEANS OF PAYMENT AND SIGNATURE ASSISTANCE
The money must be deposited and available in a credit institution domiciled in Spain (if it were outside of Spain it would be very complicated due to the money laundering law), when a transaction is approved and the client accepts, it must be signed as soon as possible.
INVESTMENT PRODUCTS, RETURNS, CUSTOMER COSTS.
1. RIGHT OF PURCHASE OPTION:
This formula is ideal for operations with terms of less than 1 year, which at the same time are the ones that offer the best possibilities of recovering the money in terms much shorter than those established, thus multiplying the average annual return.
ALTERNATIVES IN CASE OF NON-PAYMENT
It is the most aggressive format, operations much more aggressive than mortgages and the predisposition of customers to solve the default is greater, they still have room to amortize the investment by redirecting it to the professional investor market, when we sign this type of operations we usually have a recovery plan already defined (with bank redirection or sale of the property to a finalist buyer or failing that to a professional investor ....) and organized with the client.
2. SALE AND PURCHASE WITH AN OPTION OF REPOSSESSION TO THE SELLER:
Two deeds are signed, a normal sale and purchase and the seller is granted a recovery option that can be instrumented in different ways, currently the most used is the lease with option to purchase.
ALTERNATIVES IN CASE OF NON-PAYMENT
They are the most aggressive operations and in which there are more possibilities of keeping the property definitively, although it is usual that during the term that lasts the option of recovery that is granted to the seller, a finalist buyer is looked for that allows to cancel us and to gain some benefit.
As the investor has to sign the sale because the property is in his name, it makes it much easier to negotiate exclusive sales, and sometimes even a part of the benefits of the sale itself, there is always room to resell the property at a good price, amortize the investment and the seller also capitalize some liquidity, in any case, if at the end of the recovery period, the property should be sold quickly with profit margins of around 45% (computed on an annual basis) for the investor.
DO YOU WANT MORE INFORMATION?
City Malaga Financial Services
At City Málaga – Mas Vida we will be happy to answer your questions. Do not hesitate to contact us by calling , sending us a whatsapp or filling out the form.
+ (34) 657 566 031 
+ (34) 952 85 1613Contact Us
We will get back to you as soon as possible