Basic Information for the Investor

Basic Operation of HAUSCON

Its activity consists of listing, in a professional way, and through the websites www.hauscon.co.za, www.hauscon.co.za, individual projects that offer investment opportunities in exchange for a monetary return (investors).

The investment in the projects published in HAUSCON consists of the granting of participatory loans to HAUSCON.

The investment opportunities published in HAUSCON consist of the acquisition of assets. In certain situations, the entire renovation of the acquired real estate assets will also be carried out to increase their value and profitability. The assets selected by HAUSCON are initially submitted to a selection using “Big Data” tools and, subsequently, analyzed in detail to verify their situation from a legal and technical point of view.

HAUSCON rigorously analyzes the investment projects it receives from Investors to verify their viability and to protect the interests of HAUSCON and Equity Investors. Before publishing the projects on the platform, the following procedure is performed:

Analysis of legal documentation: evaluation of documents such as cadastral certificates, property records, approval certificates of the Technical Inspection of the building, energy certificates, proof of payment of the last four years of the Municipal Property Tax (IMI), a certificate issued by the building administrators to check the economic status of the property in relation to the Condominium Community of which it is a part, as well as insurance contracts, supply invoices, and electrical reports. When it comes to commercial spaces, information related to the viability of the business (opening or operating licenses and activity licenses) is also analyzed. If the assets are exploited through a lease, the documentation associated with the lease is verified.

Technical and financial analysis: a visit is made with a specialized technician to accredit the status of the asset to collect all possible information and confirm the veracity of all legal information obtained.

A market study is carried out in the area where the asset is located.

An economic-financial development plan for the project is drawn up in objective terms and based on conservative positions.

Technological information analysis tools are used, which analyze data in a segmented and geographic way, based on information sourced from public institutions and private entities. This service is provided by an external entity that serves as advice to understand the dynamics of the market.

Acquisition of Approved Real Estate: Once HAUSCON completed its due diligence on the proposed real estate investment and funds are available. HAUSCON will proceed with the acquisition of the proposed investment.    

Planning & Design: Planning and design will be in conjunction with Technical and Financial analysis as we need to establish the financial implications of construction investment. The final changes will be amended.

Construction Commencement: The planning on every approved project is done months in advance and all comes down to the construction commencement date. HAUSCON is very time conscious on all its projects, everything works on a detailed project time schedule. The appointed contractors sign contracts to perform certain tasks in certain timeframes.

Fixed Rate Loan Opportunities

INVESTMENT MODE

These are loans with a previously defined term that varies between 12 and 24 months. Investors grant a fixed-rate loan to HAUSCON for the development of a project to purchase, renovate and sell the property.

In this case, the promoter amortizes and pays the corresponding interest when the loan matures. In this type of project, monthly interest payments are not produced.

In fixed-rate loans – investment, although the operation is for sale, profitability does not depend on the sale of the property and investors receive the interest corresponding to their investment when the loan matures.

Using the following formula, we estimate the annual return published on the opportunity:

(C x R / 100 x T) / 360

where:

” C ” is the amount of the loans pending reimbursement;

” R ” The type of interest (in percentage); and

” T ” Duration of the Interest Period in days.