has just closed its ninth real estate crowdfunding operation. The Catalan company, the first to install a new construction house in Spain financed entirely by crowdfunding - just a year ago - has acquired an office near the Camp Nou and the Real Club de Polo de Barcelona.
With its ninth operation, Inveslar has achieved its own record of participants. A total of 144 people have made financial contributions to finance the purchase of the property for a total value of €152,100. With contributions from €100, each of the 144 people becomes part of an SL, owner of the property, not mortgaged. For each euro contributed, users receive a social participation. The apartment, which has been renovated, consists of 55 square meters, two bedrooms, and a bathroom. The estimated annual profitability of the property is 10.45%.
Pioneers in Spain
Inveslar started its activity in 2016. Last summer the company installed in l'Escala (Girona), the first new construction house in Spain fully financed by real estate crowdfunding. The participating investors (a total of 19) achieved a return of 12.56% in less than six months, time in which the property was sold. Since then, Inveslar has closed another eight operations: 2 houses in Girona and 6 floors in Barcelona, with investments from €117,000 to 261,000, and with minimum yields of 7.28%. Some of its operations have exceeded 20% profitability.
Proptech, the technological industry applied to the real estate sector
Inveslar selects properties that, after a deep and detailed analysis, are considered a strategic investment. Quality assets which enjoy added value and offer an interesting return. Once the project, costs, and future returns have been analyzed, the project is published on inveslar.com, offering the opportunity to participate in the investment based on a minimum contribution, which varies depending on the project (starting at €100). For each project, Inveslar creates a limited liability company (SL).
Once 100% of the capital has been obtained to carry out the operation, a capital increase of this company is made, and each investor receives a social participation for each euro that he invests. In this way, the guarantees for the user increase, since he owns the part of social shares that corresponds to him based on his investment. Thus, users are partners with each other, as in any conventional limited society. And it is this society that buys and commercializes the real estate asset.
When the financing and acquisition process is completed, which is done 100% online through Inveslar's technological platform, the asset is put to rent, and the dividends it generates are distributed monthly among the investors. If the sale price previously stipulated in the business plan published on the Inveslar website is reached, the property is sold, and investors recover their investment plus the capital gains obtained on the sale. The company formed to carry out this operation is liquidated and dissolved. The whole process, for the investor, is done without leaving the Internet, without banks, and without bureaucratic procedures.
A new concept of savings (and a new saver profile)
Carles Serradell, a founding partner of Inveslar, points to the fact that he is "democratizing the sector" as the main key to the success of real estate crowdfunding. For Serradell, "real estate assets represent the safest type of investment; they are long-term savings operations." Inveslar, which has achieved 100% financing in 9 operations, is already running the tenth: a flat in Barcelona -Sagrada Família zone- worth € 349,000.00, which provides a 9.69% annual return. Carles Serradell points out that the sector has passed "from the speculator to the millennial; The urban savers who bet on the collaborative economy are young people, mostly from Barcelona, under 40 years of age and who already have their homes.