With their savings, they bought the vacant lot, but to begin to build the residence of 3.5 floors they needed 3 million pesos (MDP). First, they knocked on the door of Santander they asked for experience and guarantee three to one to back the loan. If the land acquired was worth 3.2 million pesos, they would only be receiving 1.5 million and the property would remain under guarantee. Two Multi-Purpose Financial companies were their second option. The percentage of 18 to 19% interest they requested was too much to support their small developer.
His last alternative was to bet on crowd funding or collective financing. A scheme that allows small investors to put their money in real estate developments, with amounts from 25,000 pesos, and obtain returns higher than the IPC in an average term of one to two years.
In 2016, by recommendations of friends, Rivera, Moniz and Curial decided to try it through expansive one of the three platforms that exist in the country. which began operations in July 2015. In a first stage, they asked for 1.5 million pesos to start construction. In just over a month, obtained from 12 investors, who could contribute from 50,000 pesos?
Adolfo Zavala, co-founder of expansive, points out that it is a win-win. On the one hand, you cover the capital needs of these developers. On the other, you open the door to potential investors who intend to diversify their portfolio and obtain more and better returns than other investment instruments.
Financing usually occurs through debt or co-investment schemes. Tau applied the first round backed with 14% fixed rate promissory notes. Today, the work is in the fourth month of progress, and through Expansive, the entrepreneur’s report how the project is going. Investors will be able to see returns by mid-2017, once the house is sold
If you spend more than you have, your debts may possibly lead you to borrow with high interests. State Street Global Advisors placed the statue to commemorate International Women’s Day. Although the cost of mortgage lending rises, 2017 is a good year to buy a home, experts recommend.