Real Estate Players | Zentrica Real Estate Investment Club Blog

Real Estate Funds will be one of the main players in the markets

After the market in Spain say “no” to continue working with the banks like lenders, working on the way of the “promoter lend”, where they was financing a 100% of the RE promotion and subrrogating the lend like a mortgage to the final buyer.

Is possible that after the crisis this way don`t continue living because anyone could promote, and for large projects the Real Estate Funds could be a very good alternative always that work like a perfect complement to the bank lend, in Spain banks can lend between a 50% and a 80% of the project and the rest of financing must be done with the company funds or Real Estate Funds that support the project.

This funds like to invest in projects that are going to be development in several years, so for them is a good way to manage their cashflow in order to the funds they receive annually.

Real Estate Funds have a variable that define their work philosophy that is call “voracity” of the fund, if they are very dinamic they have a high voracity, this means a great interest to invest the money they receive from their investors quickly and focusing in a project line.

Is possible that the specialization from now in advance do that Real Estate Funds or Real Estate Hedge Funds begin to arise like a new investment movement and hundred of these Hedge could be defining working for short term periods or to invest in a few of projects, having a fund live not more of 5 years.

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Spain need to be on the edge in Real Estate Invesment focus

From the Spanish Goverment to the Real Estate Investors, all the players in Spain, need to be on the edge in Real Estate Focus, really the Real Estate Promoters companies are really fine in comparison with companies from other countries but not in Real Estate Investment.

The Spanish Real Estate Investment market need to up one step further and have professional players, more than now having the experience of anglo-saxon companies.

We can saw in last SIMA the need of companies to work with investors, not with final buyers, but to work with investors a company need to know how to work in this league, and what and how to offer products to investors, looking for an exit strategy or at least a good yield annually.

This point have not been worked by the Spanish companies so when they are trying to sell all the final product stocks they cannot do it, because the secret is not a good cheap only, the secret is a good yield and a good exit strategy for the money, and when you dont have an exit strategy you can work with a cheap price.

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