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:
Housers publishes on the platform the following loan modalities:
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:
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:
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:
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.
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:
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.
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: