XAVIER ITURBIDE WINS FINANCIAL INNOVATION MEDAL AT 2017 MIAMI RETEC SUMMIT
Actualizado: 4 jun 2019
Thanks to an innovative financial plan, our President and CEO is recognized as one of Latin America's Top 10 innovators in the Real Estate Industry.
Investus' President and CEO, Xavier Iturbide, was awarded the Financial Innovation Medal at the 2017 RETEC Miami summit in October, thanks to an innovative financial plan applied to one of our premier properties in Mexico. The prize, sponsored by Real Estate Intelligence company 4S, gathers the top Latin American Real Estate Developers in one place to discuss market trends and disruptive practices.
During his speech, Xavier mentioned the difficulty in obtaining financing from traditional channels like banks and funds in Mexico, especially for the small and new developers;
A new way of fiancing
“New and disruptive developers have trouble accesing traditional financing products, as banks don't trust them; they don't have a history. But there are ways to beat the system here, we just need to be a little creative and trust our gut.”
Investus proposed a plan to finance construction of one of our residential condominiums by offering rental income to clients who paid up front, thus having larger cashflow during constructions, without the hurdles from traditional bank financing, and also offering prspective buyers the opportunity of having their money put to work even before having their unit delivered. Additional benefits for the developer include lower cost of financing, reduced cashflow need as no capital is to be paid to the investor, and liberating the property as no collateral is given except for the individual units sold.
Inspiration for younger developers
Present at the ceremony was a group of new, young developers who at the end approached Xavier to talk about possible collaboration opportunities to work on similar schemes for their own projects.