In order to understand our p2p lending investment opportunities with renovation let’s see first how investment opportunities work:
In these opportunities, the investors fund the development and execution of a project through loans to a project developer. These are opportunities with an estimated length between 6 and 36 months. In this type of opportunities the yields are linked to the return obtained by sale of the asset, by the rent or both. The project developer sets a target sale price and, when this it is reached, the commercialization starts and the property is sold.
With Housers investment with renovation opportunities you will not earn rental yields, the success of the project is only linked to the sale success. The properties are selected in central areas of rising cities such as Madrid, Barcelona or Milano; in areas with a high demand and low offer, in which modern renovated apartments are hard to find.
3 steps are taken in the development of this properties:
Once acquired the renovation is made under the turnkey model, which means there is no risk of deviation. The renovation is made from scratch, creating a full new optimized distribution of the property.
To increase the value of the properties, we also perform a full decoration and a Home-Staging selling strategy that adds an extra touch of style to accelerate the sale and make the property even more appealing to potential buyers.
Each type of opportunity has its yield-risks relationship. As any financial product, the higher the estimated yields the higher the risks. Investment opportunities with renovation are placed in a balanced position in our chart, almost in the middle, which is also why they are one of our investors favourites and are usually funded extremely fast.