TYPE OF INVESTMENT
Euram specializes in two forms of residential investments: cash flow and project development.
Cash flow investments
These are investments whereby an existing complex with rental properties is purchased. These are often well-let properties that are several years old, and which we allow to increase in value through smart renovation rounds. With this, rents can be increased and the project can ultimately be resold at a higher price. We call this way of investing “value add”.
As a rule, the turnaround time for a cash flow investment is approximately 60 months. Because the homes are already rented out at the time of purchase, this form of investment provides a stable and predictable cash flow from the first moment, with payments per quarter.
The average projected return is 9.5% linearly per year*. Cash flow investments have a more “defensive” character in terms of degree of risk. Euram only fulfills the role of “capital partner”, by financing only part of the required equity capital.
* The value of your investment may fluctuate. Results from the past do not guarantee future results.
This is the whole process of buying land, making plans and organizing the financing. During a development, the project developer is in full control. From the closing of the bank financing – for which she also guarantees – to the contracting of the contractor, organizing the rental after completion to the eventual resale of the entire project.
A complete development process takes an average of 24 to 36 months. An important difference from cash flow projects is that no distributions are made to investors in those two to three years. The amount of that payment only becomes clear when the completed project is resold. At that time, the initial investment, together with the sales return achieved, is paid to the investors in one go.
Euram only participates in development projects with an average projected return of 14% * linearly per year. A development has a more “offensive” character in terms of risk level. Also in development projects, Euram only fulfills the role of “capital partner”, by financing only part of the required equity capital.