Argentines often choose property as a haven of value and many prefer the outdoors to escape local uncertainty. If that is your profile, I discovered an excellent alternative.
Pablo Giunta, what do you do in $r. House?
We had worked for many years for people with a lot of money. We had a dream that was the seed of the company, which was to lower the entry barrier for those sophisticated investments that were for a few. To do this, we face two great challenges: on the one hand, to be able to be part of businesses of this style, before, you needed to have a minimum of between 100,000 and 1,000,000 dollars. These amounts were already prohibitive for a large part of society. And on the other hand, it was a form of investment that only a small niche knew. We took step one, in $r. House we made it possible for you to join these proposals with only $10,000. With that money, you do absolutely nothing in the real estate sector in Argentina, much less in the United States or Europe. We wanted to give professionals, workers and savers the opportunity to invest in a conservative and profitable way. After managing to lower the minimum ticket, we went to step two and communicated it massively. We are currently on several radio stations (Blue, Milenium and Aspen Punta del Este) and we have a very active role in financial education on social networks, mainly on Instagram (@senor.house)
What do they invest in particularly?
We constantly analyze what is the healthiest way to maintain a healthy balance between security and returns, thinking all the time about protecting our clients’ assets. We believe that the assets with the lowest risk and greatest potential are four: industrial warehouses, self-storage, the residential sector and rental or multi-family buildings.
What returns are we talking about?
Currently, our different proposals provide a very interesting rate of return of between 10 and 15% annually. We have to think about an investment horizon of three years, so we are talking about a final profit, cash on cash, of between 30% and 45%.
What is the process like in each of the investments?
To understand how it works, I am going to give you the example of a multifamily in which we recently invested. It is located in Princeton, New Jersey (USA). It is a complex of 440 houses. It cost more than 131 million dollars. Today those homes were rebuilt and 95% are rented. The idea is to finish renovating all the functional units and improve the common spaces. I am referring to the club house, the pool, the children’s play area, among others. When that milestone occurs and the multifamily is completely renovated, we can raise the rents and obtain greater cash flow. That makes the business more attractive and that is when we offer it to an investment fund that is our final consumer. When that sale occurs, our clients have the possibility of withdrawing the capital and their profit, taking out a part or reinvesting what they want in the next project. The most virtuous model occurs when capital and profits are reinvested from project to project. There the interest that the investor receives becomes compound and that is the most recommended strategy. We do very conservative developments and real estate takes time. But if the investor can wait, in six years he can double his capital, in twelve years he can triple it and in fifteen years he can earn 433%.
Contact:
Web: www.señorhouse.com.ar
Email: info@señorhouse.com.ar
Telephone: 4185-6272
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by CEDOC