This is another auction product with the borrower- Internova. We have already financed their deals with Inveslar, the business model is to acquire undervalued properties via Auctions and then sell it bellow the market price. The expected sales prices per sq. m. is 2,553 EUR, while average listing value per sq. m. in Idealista is 2,847 EUR for comparison in Eixample district for 140-160 sq. m. apartments with 4+ bedrooms.
For this sales price, the borrower is expecting to make 66,032 EUR EBT, which is equal to 20% margin of safety for the project. As a side note, Internova is contributing 33% of project's total equity. Housers retains 10% from the earnings.
Update 11:45 AM (CET): Explaining this part: "Additionally, GOC will monitor these types of projects, in order to guarantee a permanent control regarding the allocation of the capital provided by the investors." - GOC supervises the spending of the loan which will be given to the company, in a structure that GOC (audit company) holds the funds and facilitates it on behalf on the borrower, but Housers have to validate the transfer that the funds would not be taken out of the company for other purposes. Therefore, the borrower can not move out the assets outside the escrow account without the validation of GOC and Housers.
*The invested amount on platforms can differ because founders of EvoEstate have funded the small allocation which was left from personal capital. The interest begins to be counted from the moment you invest.
FLEX CONTRACT - New type of contract that has a duration of 12 months, that can be expanded up to 6 more months.
Type of opportunity: Loan.
Modality: Development Loan1 Flex2 contract.
Profitability: 10%3 in 12 months.
We introduce you La Riera, a new opportunity of Development Loan1 which consists of the concession of a loan to a promoter for the purchase of a house in auction, for its later reformation and sale in the city of Gerona.
REASONS TO INVEST IN LA RIERA:
- For the attractive purchase price of the house;
- Extensive experience of the promoter;
- Central location;
The project is located in the capital of Gerona, a province of the same name in the north of Catalonia.
To emphasize on the location:
- Gerona has a historic centre or Barri Vell (Old Quarter), bounded to the east by the so-called Passeig de la Muralla (Wall Promenade), the sentry path of the ancient Carolingian walls (9th century) and the lower medieval walls (14th and 15th centuries).
- The city of Gerona was awarded the Prize of Europe in 2016, a distinction granted annually by the Council of Europe to those municipalities that have made notable efforts to promote the ideal of European unity. It is the second after Santiago de Compostela.
- The Cathedral of Santa María, built between the 11th and 18th centuries, has three main successive architectural styles; Romanesque, Gothic and Baroque.
The opportunity foresees the purchase of a house, for its later reform and sale in the area of Gerona.
The house is a duplex - penthouse with an area of 141 m2.
The promoter is Invernova Trade, a company in the real estate sector with extensive knowledge.
It is a company with great experience in the purchase of properties by means of auctions, for its reform and later sale.
Additionally, GOC will monitor these types of projects, in order to guarantee a permanent control regarding the allocation of the capital provided by the investors.