Crowdfunding in Mallorca is an exciting opportunity to earn money with (holiday) real estate . Numerous German providers have already tried their hand at this topic. Only a few are still active on the island. Why it is like that? Here are the three most important arguments you need to know when you start crowdfunding on Mallorca.
Crowdfunding on Mallorca: you need to know these three arguments
- High security with extraordinarily high returns. How does that fit together? If not enough equity is planned for crowdfunding, the project will fail. In concrete terms, this means that our properties are always unencumbered . Yes, you read that correctly: Crowdfunding in Mallorca is usually secondary. This means that there is always a bank in the first place in the land register. In most cases this is not the case with us. This is good for you as an investor. And that’s good for us as a project developer: due to our short planning time and subsequent construction time of 12 months , bank financing is not worthwhile for us as a property developer at all . We prefer to use fast crowdfunding instead of slow and bureaucratic bank financing.
Advantage for you: although you are not behind a bank in the land register, we always pay a high, fixed interest rate over a fixed term. Usually 12 to 24 months. The interest rate is derived from the comparative interest rate that we would have to pay at a bank (closing costs, interest, early repayment penalty) and is usually 6.5% pa - Even during the construction period, we offer the house to end customers via our network of brokers. Either for sale or for rent. We use the money from the sale of the property to repay your investment. If we rent the property on a long-term basis, we will finance the sales price through a local Spanish bank. We then use the money from this financing to repay your investment.
- Local know-how: although Mallorca is often described as the 17th state, the construction sector is subject to numerous Spanish regulations that one must know. We have our own project company in Mallorca, Cala Pi Homes SL . And know the island.
Get started with us now. With crowdfunding Mallorca
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