by InDev Capital | Nov 29, 2017 | Resi Restart Finance Whitepaper
Island of Prosperity During the Storm The reason the survivor developers are still in the game is that even in the worst of times, these developers were able to generate profits in a select number of their projects. Location Choice The neighborhood is located in the...
by InDev Capital | Nov 28, 2017 | Resi Restart Finance Whitepaper
Ernesto – Father Ernesto starts a business in 1999 with a group of partners. The partners have all worked for other developers for about ten years. The team is in business for 7 years and then the market really starts to pick up. Launches increase 50% in 2007....
by InDev Capital | Nov 28, 2017 | Resi Restart Finance Whitepaper
Interest Rate Stability – Brazil’s Selic rate went from 7.25% in 2012 to 14.25% in 2015. Obviously, during this period this made mortgage payments radically different between the time a buyer paid the deposit and when the buyer showed up for the loan at the end...
by InDev Capital | Nov 28, 2017 | Resi Restart Finance Whitepaper
Bank Repossession Due to significant inventory levels and some developers not being able to pay down their project-level and/or holding company debt, the real estate assets the banks “took back” more than doubled in the last two years and reached almost R$10 billion...
by InDev Capital | Nov 28, 2017 | Resi Restart Finance Whitepaper
The downturn began in 2014 and was triggered by an economic slowdown and political scandals related to the Lavajato process. The downturn was broad, severe, and due to the political crisis, longer than normal. Launches which had peaked at 38,000 were only 18,000 at...
by InDev Capital | Nov 28, 2017 | Resi Restart Finance Whitepaper
There are many developers that made “fatal” errors. A fatal error for a real estate project is the wrong location and the wrong product. Many developers did not retrench and kept launching a product that had no demand. These developers are now realizing that even at...
