How We Turned €650K Into €850K in 24 Months: Anatomy of a Successful Investment (1/3)
- Cristina Schuttmann
- Jul 14
- 2 min read
Updated: Aug 4
In 2023, a Mexican investor came to us with €650K to diversify into Spanish real estate.📈 Today, 24 months later, the asset is worth €850K.This is the full breakdown of how we made it happen.
THE CONTEXT: WHY MADRID IN 2023
Madrid was at a unique post-pandemic moment: stabilized prices with high rental demand.
Our analysis highlighted 3 key drivers:
Factor 1: New Housing Deficit• Only 3,200 new units vs. 8,500 in demand• Critical shortage in premium areas• Opportunity: High demand = High appreciation
Factor 2: Golden Visa + Remote Work• 340% increase in Golden Visa applications• New residents seeking mid-term rentals• Target: €3,000–€4,500/month homes
Factor 3: Favorable Regulation• Housing Law not yet implemented• Tax incentives for renovations• Limited window of opportunity
🔎 OUR IDENTIFICATION PROCESS
Step 1: Strategic ScoutingWe tracked 127 projects across Madrid through our direct access to:• Gestilar (pre-market access)• CBRE (off-market deals)• Kronos Homes (exclusive pre-sales)
Step 2: Selection FiltersFrom 127 opportunities, we applied our 8 proprietary filters:
Location: <500m to public transport
Proven demand: >95% rental occupancy
Developer solvency: Assets >€50M
Permits: Granted or advanced stage
Pre-sales: Minimum 40% sold
Build quality: Energy certification A
Projected yield: >12% annually
Liquidity: Active resale market
Result: Only 3 projects passed all criteria.
SELECTED OPPORTUNITY: Residencial Chamartín
Asset Highlights:
• Location: Chamartín, next to new AVE station
• Developer: Gestilar (40-year track record)
• Layout: 2 beds + 2 baths, 85m² + 12m² terrace
• Price: €650K (€7,647/m²)• Delivery: Q4 2024 (18-month horizon)
Why it stood out:
Advantage 1: Infrastructure
• €7B investment in Chamartín Station
• Direct airport connection
• Complete urban redevelopment plan
Advantage 2: Price vs. Market
• Area average: €8,200/m²
• Our price: €7,647/m² (7% below market)
• Reason: Early pre-sale discount
Advantage 3: Proven Demand
• Local rental prices: €2,800–€3,200/month
• Projected gross yield: 5.2%
• 78% corporate tenant demand
RISK ANALYSIS
Technical Risk: LOW
• Gestilar: 0 failed deliveries in 15 years
• Permits: Fully approved
• Financing: 60% bank + 40% pre-sales
Market Risk: MEDIUM-LOW
• Madrid: +3.2% avg. annual growth (10 yrs)
• Chamartín: +4.7% (last 5 yrs)
• Client benefit: Geographic diversification (MX–ES)
Regulatory Risk: LOW
• Housing law: Not affecting new builds
• Golden Visa: Client eligible
• Tax: Spain-Mexico treaty applicable
OPTIMIZED FINANCIAL STRUCTURE
We structured the investment for tax efficiency:
• Vehicle: Spanish SL (corporate structure)
• Financing: 70% mortgage + 30% equity
• Tax benefits: VAT deductions for economic activity
Estimated annual tax savings: €15,000
FINAL DECISION: WHY WE SAID YES
Out of 127 analyzed opportunities, this one stood out for:
Triple convergence: Location + Timing + Developer
Controlled risk: All factors verified
Strong upside: Revaluation potential >25%
Exit optionality: Active secondary market
Perfect fit: Exact match to client's profile
Next week, we’ll reveal our full due diligence process that confirmed this decision.
Want to know how we identify similar opportunities for your portfolio?
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