Frequently asked questions
General
My Blue Bricks is an investors community that focus on real estate operations in the main urban city centres of Spain. Our focus is in Valencia, Barcelona, and surroundings. The main reasons to invest with us are:
- Short operations, strong ROI (12,5% average)
- Focus on transparency and face to face investor relations
- We speak your language (English, Spanish, German, Dutch,)
- Creative and innovative real estate strategies
- Local market knowledge
- Housing affordability compared to income
- Attractive for the international investor
- Lower competition: Spaniards prefer to own their homes and keep investing in real state as their main savings asset
- Low mortgage interests
My Blue Bricks focuses on Spain and in the medium term we plan to expand to other countries diversifying the portfolio.
No, not at all. One of the core principles of the My Blue Bricks community is learning and growing together.
So whether you are new to investing or already have some experience, My Blue Bricks is the right place to gain and share knowledge, grow and learn together.
With the right mindset, everybody has something to contribute and together we can achieve much more than each of us individually.
My Blue Bricks normally invests in urban small to medium sized flats situated in centric neighbourhoods with purchase price of 70.000-90.000 euros. However, this changes a lot for every location and type of real estate that is bought.
After the purchase, the apartments are renovated and sold for a profit.
My Blue Bricks buys specificly and centrally selected properties throughout Spain and completely reform them in a short relatively period of time. In the process of the project, we are adding value by updating the distribution of the property, recovering the original elements and using sustainable finishes that people like to have in their new homes.
This comprehensive and fast reform of just 2-3 months of work, allows to quickly rotate investments and recover liquidity every 8-12 months without getting caught up in projects that are too long to reach the market. Especially, when the economy is different from that of the start of the investment.
The advantages of fast promotions are:
- Maximize profitability by rapidly rotating assets.
- Generate recurring liquidity in short terms at the end of each project.
- Have a greater capacity to react in investments in competitive environments.
- Reduce the influence of the national economy by selling to local and international buyers.
- Increase the resistance to market cycles.
- Lower risk because, in case of need, it is possible to sell or rent the property even without reforming it.
- Reduce both labor risks and work execution.
- Market research services
- Fix & flip investments consultancy and mentorship
- Rental properties investments in Spain
- Other real estate Investments (off market deals)
- Knowledge and content
Investor projects
- Select your project in our Projects menu.
- On every project you will find a button that says: “JOIN THE PROJECT”, press it.
- You need to fill the form with all the details requested (personal details, amount that you want to invest, etc).
- After sending the form, the contract is generated automatically and will reach you in few hours.
- Review the contract, sign it and send it to us.
- Transfer the funds to the provided account
What to expect after that?
We will invest your capital in the selected project, and try to deliver the expected ROI on the expected time. During the time that the project is ON, we will keep you updated through e-mails, you could visit the property if you contact us. If you have any question, don’t hesitate to contact us.
We want to be as open and inclusive as possible so there is no hard minimum to participate in an investment.
The nature of investing, however, is that you get a percentage return of your investment back as profit, so the higher your initial investment, the higher the absolute return.
For most projects, the expected time to transform, rehab and renovate the apartment is 6-8 months and we estimate 2 additional months to sell the apartment.
For most projects, you can expected +/- 8 months before you get your money + return on investment back or can reinvest in the next project.
The investments are build up in the two following ways:
- Fix and flip investments. In these investments, we are guaranteeing a 5% minimum and up to 7,5% additionally variable. This can potentially end up in 12,5% ROI in total.
- Coliving investments. With coliving investments, the contract length can differ between 2-5 years with a fixed yearly ROI. A 2 year investment offers 6% fixed ROI and a 5 year contract offers 10% ROI.
In none of both cases, My Blue Bricks is taking a commission from your achieved ROI.
All the projects are guaranteed by a real estate asset without mortgages involved.
All investors having a personal loan, the investment is guaranteed by all the assets and income of My Blue Bricks.
The company could keep the property on the market for few months more, choosing to sell at a later moment or for a slightly minor price. And if finally the property is not sold for current market reasons, we could rent the property for a while and sell it after.
These actions will be taken on consensus agreement with the investors.
“Cuenta de Participación” is a type of contract that allows you to invest in our opportunities and obtain the total ROI of the investment based on the % you invest from the total project costs. If the deal is successful, this type of contract returns the exact percentage generated by the project after the sale.
Vice versa, if the property is not sold on time or the market goes down, you are assuming a potential loss of capital. If we had to rent the property, you would get part of the rent, according to the percentage of the total capital that you would have invested.
We could say with this kind of contract, you become the business partner of My Blue Bricks, with all inherent rights and duties.
Example: Our next opportunity is a flat where we should invest 100.000 euros in total. If you invest 10.000 euros, you will own 10% of the operation. If the operation is successful and generate 20.000 euros of total profit, your profit will be 2000 euros before profit tax. |
A “prestamo participativo” is a type of contract that allows you to invest in our opportunities and obtain a fix percentage of interest. The length and interests of the contract are determined by an agreement between My Blue Bricks and the investor.
The agreement is guaranteed by a determined project or different projects (one or more properties that are being renovated and sold after the renovation).
We are sending periodical newsletters explaining the evolution of every project you are investing in.
In some occasions, we organize field trips to visit the properties you have invested in.
We have different trusted collaborators in every town we operate: architects, contractors, homestagers and suppliers. Depending on the size of the project we use the most convenient partners.
Our average renovation costs are between 20.000 to 30.000 euros per property. Sometimes this amount increases or decreases depending on size, quality of the materials and complexity of the renovation.
Taxes and red tape
Yes, to buy, invest or create a company in Spain you need a tax identification, called CIF (many people think you need the NIE, but for non-residents, you need the CIF). This document is necessary for the Spanish authorities to identify you in Spain for tax purposes. Normally, with obtaining your NIE, the same numbers is used for your CIF.
It is very easy to get in any Spanish embassy and it will only take 5 minutes of paperwork. However, it is very important to book an appointment through the website of the Spanish embassy.
We advise you to check with your tax advisor. This information should be taken solely for informational purposes.
In general terms:
- If you are an individual, interests received are taxed as income from capital on the following scale:
- Up to €6.000 at 19%
- From €6000 to €50.000 at 21%
- From €50.000 up to €200.000 at 23%
- From €200.000 and more at 25%
- If you are a legal entity, the interest received is included in the tax base of the Corporation Tax, taxed at the corresponding tax rate.
Profit is subject to a withholding tax of 19%. This means that My Blue Bricks will keep 19% of your profit, which must be paid on your behalf to the Spanish treasury. This means that for individual investors, taxes on profits up to 6000 euros, this amount will be paid by My Blue Bricks. Above this amount, the investor will have to pay directly to the spanish treasury (in the yearly tax declaration).
Case 1: If the profit obtained is 6000 euros or less, My Blue Bricks pays for you. You just have to tell the bookeeper (in Spanish ‘gestor) to notify that on next year tax declaration. Case 2: If the profit obtained is 10.000 euros, My Blue Bricks pays for you up to 19% of the first 6.000 euros. The rest of the remaining 4.000 euros will be taxed at 21%. That means, that you will need to pay 810 euros at the tax declaration of next year, and it’s your responsability to do so. |
This information should be taken solely for informational purposes, however, in general terms:
Interest paid to non-resident investors will be taxed at a rate of 19% in Spain. The investor can deduct in their declaration the amount that, according to the regulation of his country of fiscal residence, corresponds to the taxable income that appear as income obtained and taxed abroad.
You could find more about rental property taxes in Spain in this article.
Partners
My Blue Bricks is all about sharing, the power of many working together and achieving bigger goals. You earn 1 My Blue Bricks Token worth 0,5% of your referrals investment amount for each new investor who invests €10.000 or more. This will be aplicable on their first investment projects.
You will receive this token as a profit top-up of your investment in the following successful My Blue Bricks project you participate in.
Example: If you promote My Blue Bricks among your friends and one of them invests €10.000 for the first time, you earn €50 on top of the first following successful project that you invest in. Since your investment will be bigger, your absolute ROI increases as well. If the new investor contributes €65.000, your My Blue Bricks Token will be worth €325. Good deal for talking to your friends, right? |
We have a couple of partners that proposed us ideas/projects to be developed in parallel next to the investment projects.
As we have a startup mindset within My Blue Bricks, please, bring your idea and perhaps we have the tools to make it become real.
Comments, ideas, suggestions?
Tell us a bit more about yourself, and one of the team members will contact you.