Basic Information for the Investor

Risks and Warnings

  • Housers is not a credit entity, an investment services company, or a part of any investment guarantee fund or deposit guarantee fund. As such, the capital invested is not guaranteed by Housers.
  • Collaborative financing projects published in the platform are not authorised or supervised by the National Securities Market Commission (Spain), the Bank of Spain or any other national or international regulatory authority. The information provided by the promoters has not been reviewed by the National Securities Market Commission and does not constitute an information leaflet approved by the Commission.
  • Housers does not offer any financial advice and no information presented on the platform should be interpreted as such.
  • The information appearing on this page is for informational purposes and does not constitute specific advice.
  • The investment made in projects published by Housers involve the following risks:
    • Risk of total or partial loss of the capital invested and risk of not obtaining the expected return. The profitability of the investment will depend on the positive development of the company, therefore, there is a risk of not obtaining the expected return, or even not obtaining any return and ending up losing the investment initially made.
      As mentioned above, the investment is not guaranteed. If losses are suffered, neither Housers, the promoter nor a fund can guarantee the recovery of the investment;
    • Risk of lack of liquidity to recover the investment, i.e. the sale of the stake in the company/loans may not be fast. Generally, investments in opportunities are medium/long term, so the same cannot be considered liquid.

Basic Housers system

Housers is a collaborative financing platform. Its activity consists of connecting, in a professional manner and through the website www.housers.com, individuals or legal entities offering financing in exchange for a monetary income (investors) with individuals or legal entities requesting financing at their own name to allocate it to a collaborative financing project (promoters).

The investment in projects published in Housers platform consists in the granting of participatory loans to promoters.

The investment opportunities published at Housers consists in the assets acquisition. In certain situations, the acquired real estate assets will also be fully refurbished, in order to increase the value and profitability. The assets selected by Housers are initially selected using "Big Data" tools and then analysed in detail to verify their legal and technical status.

Housers rigorously analyses the investment projects it receives from project developers in order to verify their viability and protect the interests of investors. Prior to the publication of the projects in the platform, the following procedure is carried out:

  1. Analysis of the legal documentation: evaluation of documents such as cadastral certificates, property registers, certificates of the building approved by the Technical Inspection, energy certificates, proof of payment from the last four years of the Municipal Property Tax (IMI), certificates issued by the administrators of the building verifying the economic situation of the property in relation to the Condominiums Community to which it belongs, as well as insurance contracts, supply invoices and electrical reports. When it comes to commercial spaces, it also analyses the information corresponding to the viability of the business (opening or operating activity licenses). If the assets are operated by means of a lease, the documentation associated with the lease contract is also verified (contract, rents proof of payment, identification of the lessee and the guarantor, both personal and banking, if any).
  2. Technical and financial analysis:
    • A visit is made with a specialized technician to accredit the status of the asset in order to collect all the possible information and confirm the veracity of all the legal information obtained.
    • A market study is carried out in the area where the asset is located.
    • An economic and financial development plan is drawn up for the project in objective terms and based on conservative positions.
    • Information technology analysis tools are used to analyse data in a segmented and geographical manner, based on information sources from public institutions and private entities. This service is provided by an external entity that provides advice to understand market’s dynamics.

Opportunity Types and Profitability Calculation

Housers publishes on the platform the following loan modalities:

  1. PARTICIPATORY LENDING OPPORTUNITIES

    These opportunities are grouped in two categories:

    • Fixed interest (sell) Modality
      • In this modality, the investors finance the development and execution by an opportunitys promoter via collaborative loans. These are investment opportunities with an estimated duration between 12 and 36 months. The profitability is linked to the income obtained with the sale of the real estate opportunity and, if applicable, the exploitation of the same. At the time of the opportunity publication, the project developer establishes a target sale price. When this value is reached, the property is sold.
        Through the following formula, we estimate the total profitability published in the opportunity:

        Net operating income accumulated during the interest period x 100
        Total amount of Loans


        Being:
        • "Net operating income accumulated during the interest period": the difference between the operating income actually produced during the corresponding Interest Period, minus the percentage % that the promoter retains for its own Benefit, that will appear in the Opportunity documentation and the operating expenses satisfied or charged (including operating expenses) during the interest corresponding period.
        • "Total amount of loans": the result of associating the capital pending amortization of all loans obtained by the Promoter Company regarding the Opportunity.

    • Buy-to-Let Modality
      • In this modality, the investors finance the development and execution by an opportunitys promoter via collaborative loans. These opportunities have a duration between 36 and 60 months. The profitability is linked to the exploitation of the property, i.e., the income obtained through the lease.
        Through the following formula, we estimate the annual profitability published in the opportunity:

        Through the following formula, we estimate the annual profitability published in the opportunity x 100
        Total amount of Loans


        Being:
        • "Net operating income accumulated during the interest period": the difference between the operating income actually produced during the corresponding Interest Period, minus the percentage % that the promoter retains for its own Benefit, that will appear in the Opportunity documentation and the operating expenses satisfied or charged (including operating expenses) during the interest corresponding period.
        • "Total amount of loans": the result of associating the capital pending amortization of all loans obtained by the Promoter Company regarding the Opportunity.

  2. DEVELOPMENT LOAN OPPORTUNITIES
    These opportunities are grouped in three categories:

    • Fixed interest (sell)
      • Loans with a predefined maturity ranging from 6 to 24 months. Investors grant a fixed-rate loan to a real estate developer for the development of a project to buy, remodel or sell of a property.

        In this case, the promoter amortizes and pays the corresponding interest upon maturity of the loan. No monthly interest payments are made.
        In fixed interest (sell) opportunities, even though the operation has the purpose of sale, the profitability does not depend on the property sale and investors receive the interest corresponding to their investment at the time of the loans maturity.
        Through the following formula, we estimate the annual profitability published in the opportunity:

        (C x R/100 x T) / 360

        Being:
        "C" the amount of Loans pending repayment;
        "R" the type of interest (in percentage);
        "T" ation of the interest period in days.

    • Fixed interest (rent)
      • Loans with a predefined maturity ranging from 36 to 60 months. Investors grant promoters a fixed-rate loan to develop a purchase and/or renovation project, as well as a lease of the property or properties.

        In fixed interest (rent), even though the operation has the purpose of renting, the profitability of the investors does not depend on the property exploitation or sale, as the investors receive the monthly interest previously agreed with the promoter until it amortizes the whole loan.

        Through the following formula, we estimate the annual profitability published in the opportunity:

        (C x R/100 x T) / 360

        Being:
        "C" the amount of Loans pending repayment;
        "R" the type of interest (in percentage);
        "T" duration of the interest period in days.

    • Development loan
      • Opportunities with an estimated duration between 12 and 60 months. Investors grant a fixed-rate loan to a promoter for the development of a large project, such as projects construction or rehabilitation of several units.

        The income starts to be produced from the first month on the basis of the interest rate previously agreed with the promoter. In the case of fixed-rate loans, profitability does not depend on the property operation or sale, since the investor receives the interest agreed with the project developer on a monthly basis until the loan is repaid.
        Through the following formula, we estimate the annual profitability published in the opportunity:

        (C x R/100 x T) / 360

        Being:
        "C" the amount of Loans pending repayment;
        "R" the type of interest (in percentage);
        "T" duration of the interest period in days.

Scoring System

It is the scoring system for the projects funded throughout our platform.

With the purpose of making our scoring system more transparent and neutral, we asked an external company to make it. We outsource the scoring system to an external company specialized in real estate risk analysis, with many years of experience both in Spain and in the rest of Europe.

This company works to deliver financial and strategic analysis, named Silva & Asociados. It is based in Madrid and it is composed by a professional team with many years of experience in the field that aims to guarantee a high-quality analysis to small-medium sized companies. 

Particularly, they cover everything regarding the investment, disinvestment and funds. Silva & Asociados acts from the customer’s point of view and, in our case, from the investors’ point of view.

The scoring is defined as the objective or impartial analysis of the main parameters of a company, a financial product or an investment project, the purpose of which is to obtain an evaluation.

The objective is to achieve a "Global Scoring". To achieve it, Silva & Asociados, Asesores Financieros, S.A. (S&A) carries out a two-pronged analysis:

  1. Static analysis: consists in the analysis of data taken in a specific moment of time. The data refers to the project developer as well as its warranties. In particular:
    • Project developer’s experience;
    • Number of projects launched;
    • Settlement rate;
    • Debt rate/net worth;
    • Asset management rate;
    • Duration rate;
    • Rate of return;
    • Operating rate.
    In parallel, a warranties’ analysis is conducted and, if it covers the whole loan amount, the scoring system will upgrade. If it doesn’t, the scoring will retrograde.

  2. Dynamic analysis: consists in the data analysis that may occur during the whole project’s life. Therefore, the data is about the project.


    S&A suggests an alphabetical scoring, similar to the commonly accepted one, whose level and quality details are:



Applicable Fees

The fees applied by HOUSERS to investors and Project developers are the following: Brochure of Maximum Rates and Reputable Expenses.

Conflicts of interest

To avoid conflicts of interest, HOUSERS approved an Internal Code of Conduct whose contents can be consulted here: Internal Code of Conduct.

Complaints and claims

If investors wish to submit complaints or claims to HOUSERS, how to do so can be found here: Customer Protection Regulations. You can address your complaints or claims to the following email address: support@housers.com

SERVICE CEASE

Mechanisms in case of activity cease

Due to Housers Web site based on the software, hardware, and Internet systems, Housers does not guarantee continued or uninterrupted access or use of the Web site. As a result, the system may eventually be unavailable due to fortuitous events or major force, as well as technical difficulties or Internet failures, or due to any other circumstance beyond Housers control. In such cases, we will try to reinstate it as quickly as possible without Housers being held liable.

Housers shall not be responsible for any errors or omissions contained in the Web site. Users may not hold Housers responsible or demand payment for damages due to technical difficulties or failures in the systems or the Internet.

The Web site is hosted in a secure data centre owned by a specialized hosting company, and whose availability of service is guaranteed.

In view of the diversity of parties involved in providing the web site service, Housers does not guarantee the continued availability of the service. For instance, the foregoing, and in order to try to avoid as far as possible the non-availability of the service, the Platform has a triple backup system:

  1. Personalised backups (developed by Housers) of the database, carried out every hour on different servers.
  2. Backups of e-wallet transactions by Lemon Way;
  3. Differential daily backups of the entire virtual server where the Platform is hosted, by the specialized hosting company (ISP).

In addition, in the case of Housers ceasing to operate definitively for any reason, the contractual relationship between Housers and the Investor shall be finished in accordance with the provisions of the Clause 12. In such event, the Investor acknowledges that such termination shall not affect the provisions of the Contract that, as the case may be, has been signed with the Promoter and/or its partners, which shall remain in force during the term established in such contract and shall be governed by the provisions. In such case, the Investors shall coordinate with the Promoter its provision of adequate mechanisms for communication between the Investors and the Promoter in the development of their relationship under the Contract, without the Users having the right to claim Housers for any reason.

If HOUSERS decides, for any reason, to cease its activity, it shall give a three (3) months written to investors and project developers, proposing a substitute equity financing platform to succeed HOUSERS in the rights and obligations assumed with them, and indicating them the procedure for an orderly transition from one platform to another.

If HOUSERS does not activate this mechanism, investors and promoters would have to relate directly, i.e. without the intermediation of a platform, without prejudice to their right to claim any damages they may be entitled to.

Measures taken by HOUSERS to minimize fraud risk and operational risk

HOUSERS will maintain the necessary procedures and policies to minimize the risk of fraud in its operations through the following means:

  • Measures to minimize the fraud risk:
    Considering the type of business and investments that are made with their services, the possibility of fraud can occur in both the internal and external sphere of HOUSERS for which has implemented the following procedures and measures:
    1. Before accepting the publication of an Opportunity in the platform, HOUSERS carries out an identification of both the asset object of the Opportunity and the promoter, crossing the data of both with the public data available in the official registers and through the request to third parties of the documentation supporting the Opportunity necessary to determine: (1) the reality of the same and (2) that it has the title and legal capacity to mediate. This identification and analysis of the reality of the Opportunity includes:
      • An analysis of the market in which the Opportunity is circumscribed, carried out by HOUSERS internal teams.
      • HOUSERS comparisons of prices and profitability of the area by means of specialized professionals that allow to verify the hypotheses indicated by the promoter.
      • HOUSERS reviews, with the necessary professionals, the contracts that should give form to the Opportunity to make sure of the eligibility of the obligations object of the same ones.
      • The analysis of the public registers allows HOUSERS to identify the holder of the assets object of the Opportunity and allows to determine the charges of the same one, in its case.
      • HOUSERS studies the Opportunities published on the platform.
    2. HOUSERS periodically reviews its systems to detect the operations that are carried out using the Platform and will match them with the information it receives from the Promoter and the requests for disbursements and payments that have been made with each Opportunity in order to prevent an erroneous or inadequate use of the Platform applications by its employees, Investors or the Promoter.
  • Measures to minimize operational risk:
    1. The HOUSERS governing body is aware of the main aspects of operational risk, the differentiated risk categories, and periodically approves and reviews the framework it uses for operational risk management. This framework provides an enterprise-wide definition of operational risk and sets out the principles for defining, assessing, monitoring and controlling or mitigating this type of risk.
    2. The HOUSERS governing body periodically provides senior management with an unambiguous guidance on the principles underlying the operational risk management framework and has approved the corresponding policies developed by a senior management. These guidelines cover the operational risk and its tolerance, by virtue of its policies for managing these risks and its criteria for prioritizing activities for this purpose, specifying to what extent and in what manner operational risk is transferred outside of HOUSERS.
    3. HOUSERS recurrently conducts an internal audit of its processes to verify that they are efficient and allow the ordinary development of its activities in accordance with the policies, guidelines and orientations approved by its governing body.
    4. The senior management of HOUSERS has embodied the framework for operational risk management established by the board of directors in specific policies, processes and procedures that can be applied and tested within the various business units and ensures that HOUSERS employees adequately comply with them.
    5. As part of the essential processes that HOUSERS has implemented in its operations are the performance of the following tasks:
      • High level studies on the progress made by HOUSERS to achieve the operational risk control objectives.
      • Verification of compliance with management controls.
      • Application of its policies, processes and procedures for the analysis, treatment and resolution of non-compliance cases.
      • System of documented approvals and authorizations that ensure the assumption of responsibilities before the most appropriate managerial category.
      • Verification of the respect to the limits or maximums assigned for the risk.
      • Establishment of safeguards to access and use assets and files.
      • Recruitment of suitably experienced and trained staff.
      • Identification of lines of business or products in which performance falls far short of what is reasonably expected.
      • Regular checking and reconciliation of HOUSERS operations and accounts.

RECOVERY PROCEDURE

Extrajudicial claim:

Extrajudicial claim of ordinary interests:

If the sponsoring company fails to make a payment or pays only part of the amount in relation to the Loan, Housers will contact the sponsor company to clarify the reasons for the delay and to request the payment, so that investors can be informed of the reasons for the default and the estimated payment terms. Housers may also take appropriate action in respect to the failure of the sponsoring company to repay the loan and, if appropriate, include the sponsoring company in insolvency files.

If after 60 calendar days the outstanding payment has not been received by the Investor, Housers will send a notification by bureau fax warning the sponsoring Company of the default situation and the possibility of the same being claimed in court.

Contemplated scenarios

  1. The promoter regulates the situation immediately. No further action.
  2. The promoter cannot pay immediately or within a few days after the date of monthly payment to the Investors. In this case, Housers contacts with them to understand their situation and find a solution. As far as possible, the collection is managed friendly. If the developer experiences a temporary difficulty, solutions are considered. The promoter is asked for a payment schedule which must be approved at the Meeting of Lenders.
  3. It is not possible to contact the developer or count on his cooperation. In this case, once the loan has expired, the process described in the following point will begin.

Extrajudicial claim when the loan expires:

If the Sponsoring Company, once the final maturity date of the loan is met, fails to pay one or more instalments of accrued interest and/or repayment of the principal (fails to make payment or pays only partially the amount in connection with the Loan), Housers will contact the Promoting Company to request payment for payment schedule request by sending Bur fax. In this way, the out-of-court claim is transferred to the pre-court claim.

Payments made by the Sponsoring Company will be applied in the following order:

  1. Payment of default interest to the Investor;
  2. Payment of ordinary interests due to the Investor;
  3. Payment of the principal due to the Investor;
  4. Housers collection of its default-claim rate (rate set forth on the Website).

Item (II) above shall be paid in order of seniority, with a fee before a more current fee is paid. A fee will be paid when the Sponsoring Company has made funds available to cover the entire fee.

Extrajudicial/judicial claim:

Once the breach mentioned in the previous point has occurred, a meeting of lenders will be convened to decide whether to give the promotor 10 days to present a proposal with a schedule and a payment commitment, or not.

If it is approved to give ten days for the submission of new offers, Housers will contact the project developer by bur fax to request the submission of a binding proposal with a schedule of payments for the loan repayment, providing a period of 10 days for the presentation of the same.

After the ten-day period, such proposal will be taken to a meeting of lenders to submit the proposal made by the promoting company to a vote. Through this mechanism, Housers gives investors the choice between accepting the proposal put forward by the developer or demanding repayment of the loan with the support of a company specialising in recovery.

If investors choose to accept the proposal put forward by the sponsoring company, the company will be obliged to comply with the payment schedule set out in the proposal. If the Promoter fails to pay any of the amounts agreed in the payment schedule or fails to comply with the proposal, Housers will contact it to clarify the reasons for the delay and to request payment, so that the investors can be informed of the reasons for the default and the estimated payment terms, and will send a notification to this effect by bur fax, guarantor or any other means that leaves a record.

If after 30 calendar days the outstanding payment has not been received by the Investor, Housers will send a communication by bur fax, guarantee or any other means that leaves a record, warning the Sponsoring Company of the situation of default.

If the situation has not been regularised within 30 days, a meeting of lenders will also be convened to decide whether to grant an additional period of 10 days for either the payment of the debt in accordance with the approved timetable, submission of a new offer with a timetable and payment conditions or the repayment demand of the loan with the support of a firm specialising in recovery.

If the investors decide to choose the repayment demand of the loan with the support of a specialist collection company, the recovery company will assess the situation and decide whether the collection possibilities justify a judicial claim, safeguarding the interests of the lenders (investors). The objective is to recover the outstanding debt bilaterally or through the courts.

Throughout the recovery process, Housers will manage the relationship with the recovery company and will regularly and confidentially inform all project investors about the evolution of the process.

The amounts finally collected from the Developer shall be applied in the following order:

  1. Payment of claim expenses (to the Recovery Company and Housers);
  2. 2. Payment of debt (principal and interest) to lenders.


RESOLUTION

  1. Resolution causes
    The following are resolution causes in relationship between Housers and the User:
    1. Failure of the User’s payment of Housers fees, expenses or commissions.
    2. The Users failure to comply with the obligations to provide information through the Web site.
    3. Any other breach by the User of these Terms and Conditions or of the commitments assumed by the Investor or the Promoter throughout the Website in the process of registration or any other.
  2. Resolution consequences
    Once the contractual relationship between Housers and the User has been finished; the following effects will occur:
    1. The User must pay all the amounts owed to Housers, if any, for the rendered services.
    2. Housers will remove the Investor from the Website.
    3. The end of these Terms and Conditions shall not affect the clauses relating to:
      • Fees (with respect to the fees that may be pending for the provision of services provided by Housers);
      • Liability regime;
      • Confidentiality;
      • Intellectual property;
      • Data protection;
      • Indemnities; 
      • Dispute resolution.
    4. The User shall indemnify Housers and its directors, officers, agents, affiliates, associates and employees against any losses or costs, including reasonable attorneys fees, incurred as a result of or in connection with any breach by the User of these Terms and Conditions or any law or right of a third.
  3. Voluntary resignation
    The User may request Housers at any time the voluntary resignation of the Website. In this case, Housers must be notified via the Web and it will proceed to cancel the contract within a maximum period of thirty (30) days from the time when the disinvestment is formalised.

    The consequences of resolution foreseen in the previous section will be applicable in the case of voluntary resignation from the User’s part.

    If the Investor has signed one or more Contracts with a Promoter throughout the Web in relation to different Opportunities, these may not be ended except the ones that are in accordance with the provisions of these Contracts.

Related documentation

AUDITORS

HOUSERS is audited by Ernst & Young S.L, registered in the Official Registry of Auditors with number S0530, NIF A78685310. Address: Calle Raimundo Fernández Villaverde, 65, 28003, Madrid, Spain.