InverActiva > Strategy & Operations

OUR STRATEGY WHEN SELECTING PROPERTY INVESTMENT OPPORTUNITIES IS VERY SIMPLE: TO MAXIMIZE PROFITABILITY BY MINIMIZING THE DIVESTMENT PERIOD.

The average disinvestment period is less than 12 months, which leads to a high, atypical turnover in property transactions, thereby neutralizing any possible fluctuations in the property market.

The investment operation is arranged in 6 steps:

1

SEARCH FOR
OPPORTUNITIES

A large market like the distressed property market in Spain requires strict selection criteria in the search for investment opportunities. For each potential investment, we analyse:

  • Average price per m2 in the town.
  • Income per capita in the area.
  • Number of inhabitants in the town.
  • Market potential for the property.

Experience (we analyse more than 600 operations per month) has shown us that investment opportunities are not so much related to the location of the asset, but rather to the market potential of the asset. Our priority is investment in prime areas (Barcelona, Madrid, etc.), and their areas of influence, but there are also great investment opportunities in non-prime areas, where you can buy at very competitive prices and sell with high returns.

2

PRELIMINARY
ANALYSIS

Once the property complies with the requirements established in the search phase, we proceed to a comparative analysis of assets (prior valuation of the property) and liabilities (charges levied on the property).

2

PRELIMINARY
ANALYSIS

3

SELECTING
OPPORTUNITIES

Based on the information gathered in the previous phases, we select those operations whose properties, according to location, market value, market potential and legal situation in the distressed property process, deserve to be analysed in detail for possible purchase.

4

DETAILED
ANALYSIS

From the selected investment opportunities we carry out a detailed analysis of the property and its legal situation:

Property: “on-site” visit to the property, photos, condition, occupancy, age, town planning regulations and current market price valuation, checking this with estate agents in the area and specialists in each type of property.

Legal situation: property, updated debt (mortgages, leasing, seizures, etc.), credit preference and rating, lease agreement, Land Registry, type of foreclosure, Bankruptcy Administrator report, Liquidation Plan, etc.

4

DETAILED
ANALYSIS

5

PURCHASE

After studying the detailed analysis of the operation, the InverActiva Investment Committee establishes the maximum amount to be offered, prioritizing both the maximum profitability and the minimum sale period (divestment).
Once the asset is sold, we carry out all the formalities to conclude the purchase; notary, allocation (decree, attestation, order for cancellation of charges) and settlement of corresponding taxes. We monitor the entire process until its registration in the Land Registry and possession of the property.

6

SALE

We sell through our own commercial team or by using an external specialized property company that we supervise directly. We look after the entire sale process (certificate of occupancy, energy performance certificate, etc.).

6

SALE