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Land registry secured subordinated loan Mallorca Project Falla 2A - CPH Invest GmbH

Written by Christoph Albeck | Aug 4, 2023 4:00:00 AM

Land registry secured subordinated loan Mallorca Project Falla 2A

Land registry secured subordinated loan Mallorca: investors loan inscribed into the land registry; secured subordinated loan with Mallorca real estate.

Have you ever thought about making money with Mallorca real estate? This is possible in Mallorca. Because here you can have a subordinated loan secured in the land register and earn money.

What does that mean and how does it work?

You want to make money like a bank or like an investor you know him from TV shows like The Lion’s Den ? You have two options: either you opt for interest or you prefer to take the profits from the sale of the project with you.

In the successfully placed Falla 2A project , the investor lent us money and received security in the land register in return. A total of EUR 850,000 was invested. A semi-detached house with 2 residential units, each with a pool, was built for this purpose in Cala Pi on Mallorca .

You can see the house in Google Street View! (Meanwhile the project has long since been completed, photos of the current state below!)

What is a subordinated loan secured by the land register in Mallorca?

In Mallorca, as a private investor, you can lend money and receive security that has been granted by a notary.

In our case, these are unencumbered properties. CPH Invest buys building land on Mallorca and applies for a building permit . Check out this video:

What are the advantages for you as an investor? Because with such a short term of up to 2 years you won’t find anything better in the field of capital investments. Our investor has achieved a return of 38% with this project!

What are the advantages of our subordinated loans secured by the land register in Mallorca?

It is typical of our subordinated loans secured by the land register that you are the only investor with us who is secured. In the unencumbered land register. A real advantage for you!

You will not be protected under land register law together with other investors. But only you! And typical of subordinated loans at CPH Invest is that we work independently of banks. What does that mean?

We don’t finance double or triple, as other project companies like to do. We finance with equity. Without money from the bank. Just you and us. Simple and understandable.

Where are the risks of our subordinated loans secured by the land register in Mallorca?

With every investment, it is your job as an investor to weigh up the opportunities and risks. In contrast to a participation (e.g. shares), you have greater security with a land register security. But of course a loss is also possible.

Your money is used at CPH Invest GmbH either for the renovation of a property. Or – as in our Invest project Falla 2A – for the construction of a semi-detached house with sea views in the south of the dream island.

Only one investor per project. Detailed business plan.

As the only investor, you finance the entire investment. The basis is our detailed business plan , which is calculated individually for each project. Your capital amount is defined in it and then secured by the land register.

This means: You will definitely get your money back as soon as the property is sold. Then it’s payday. The money is automatically withheld by the notary and you collect your capital plus interest from the notary. The process is similar for profit sharing.

Of course there are risks with subordinated loans: the property may of course be sold at a lower price than expected. But an investor must, of course, take these risks into account beforehand. What helps is a realistic assessment of the project before money is invested.

Advantage of our Falla 2A project: CPH Invest had already bought the property (100% equity), a building permit was available and construction of the semi-detached house could begin immediately. And the required capital (the investment) was called up according to the progress of construction.

How much return do you get with a subordinated loan secured by the land register in Mallorca?

The return that investors achieve with a subordinated loan secured by the land register in Mallorca is far above the returns that are achieved in other investments.

In our successfully placed project, the profit was 38%.

Photos of the completed Falla 2A project in Cala Pi on Mallorca

The project data of Falla 2A at a glance

Our investor has provided money for the real estate project

  • detailed business plan
  • Funding target EUR 800,000.
  • Call for capital in individual steps of EUR 100,000 depending on the progress of construction.
  • Status: Successfully funded
  • achieved return 38%

Are you interested in a mortgage-backed subordinated loan in Mallorca?

Are you curious? And could you imagine, as an investor, using our experience and drive to finance a real estate project via a subordinated loan secured by the land register? Then please contact us using the form below. We would be happy to present suitable projects to you.

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