Unfinished developments

Unfinished developments are housing complexes, unfinished buildings, unfinished works, which for different reasons have not been completed and delivered and therefore are a percentage of their execution.

The reasons
are several:

1.- Not has been  completed the percentage of sales that allows the execution of the promotion 
2.- Not achieving the percentage to sign the developer’s loan
3.- Poor management of resources in their economic plan
4.- Poor selection of the land and its purchase price, which hampers the final price of the homes to be competitive.
5.- Market factors that cause the demand to be reduced and leave the promotion out of the market.

How to access to unfinished promotions to invest?

Our company has access through different sources to unfinished developments, which it analyzes to put them in investment value.

What are the sources of access to unfinished buildings or unfinished residential?  

(Bank restructuring assets company) 

Sareb is a company that is part of the scheme proposed by the Spanish State and the European authorities to recapitalize the financial institutions most affected by the financial crisis of 2008. Sareb  is not a bank, is  a company that absorbed the impaired assets of those entities.

Purchase of mortgage loans
from banking institutions

Although it may have gone unnoticed by some, there is a new market used by small and medium investors who seek the indirect acquisition of real estate assets through the purchase of the mortgage loan that encumbers it.

In this way, high yields can be obtained due to the discount that the purchase of the loan encumbering the asset entails compared to the direct purchase of the asset itself.

We find a retail mortgage credit market aimed at those who seek to obtain the indicated discount, assuming, however, a higher risk than with the direct purchase of the real estate asset.

With this type of business, the assigning financial institution obtains an indirect benefit since it eliminates the risk of non-payment of the assigned loans while reducing its level of delinquency and, for its part, the acquirer or assignee, in return for the greater risk assumed, obtains a significant discount, which results in a more profitable investment or lower cost than the direct acquisition of the asset.

As a starting point, it is necessary to clarify that the assignor and assignee are completely free to enter into the assignment without the need to reach an agreement with the debtor, the only legal requirement being the notification to the debtor of the change of creditor. In addition, it is necessary to notarize the assignment document so that it can access the Land Registry and the change of the holder of the mortgage loan can be registered. These, in principle, would be the only formal requirements to proceed with the assignment.

However, in order to face with security this type of investments it is necessary to take all the possible precautions, among them it emphasizes the previous analysis of the operation (due diligence), in which, not only the legal details of the property are studied (including obviously the loads, making sure that ours enjoys priority of rank, and the possessory situation, urban development, etc.), but also and, especially, the transfer of the mortgage loan. ), but also and, specially, the actions taken in the judicial procedure, examining that the same one is processed correctly, in order to avoid that any formal or procedural nonconformity frustrates or delays the pretended acquisition.

From the fiscal point of view, the assignment of credit will be taxed by the Tax on Patrimonial Transmissions and Documented Legal Acts, in its modality of Documented Legal Acts, being the taxable base the total of the mortgage liability, independently of the price of the operation.

After the purchase of the loan and taking into account that the loan will almost certainly be unpaid, it will be necessary to proceed with its execution in order to gain access to the real estate asset.


Our company has among its team practicing insolvency administrators regulated that connect with other professionals to detect operations Attractive to the discount that allow profitable investment operations.

What are insolvency proceedings?

Let’s start by explaining what an insolvency proceeding is and then tell you who can apply for it, when, the types of insolvency proceedings that exist and their different effects. We could define an insolvency proceeding as an instrument that every company has to solve an extraordinary economic situation and crisis. Specifically, a company can file for insolvency proceedings when it does not have sufficient liquidity to meet its obligations. Therefore, it is closely related to the lack of solvency of the companies.

Thus, the Insolvency Law 22/2003 of July 9, 2003 provides that only companies that “are unable to regularly meet their due obligations” will be subject to insolvency proceedings.

This tool is used in order to be able to solve this situation and pay all the debts that have been assumed with the creditors.

For this, the debtor must prove that the insolvency is “actual or imminent”. Thanks to this, it will be able to execute a 50% write-off of the credits classified as ordinary.

Types of insolvency proceedings:

There are two ways of filing for insolvency proceedings:

Voluntarily. In this case it is the individual or person responsible for the company who does so. It is important to emphasize that such person, if he/she is aware of information that foresees the bankruptcy of the company, is obliged to file for insolvency proceedings. Otherwise, he/she may be fined and even criminally charged if the judge considers that the bankruptcy is caused by illicit purposes.

Forced. If it is one of the partners or creditors who request the bankruptcy. This can occur when there are disagreements with the management of the company. Here it is a judge who processes the request for insolvency proceedings and decides whether or not it is finally carried out.

Phases of insolvency proceedings

There are four phases in any insolvency proceeding:

1. Common phase

This in turn is divided into four parts:

First. Request for the declaration of insolvency. Study of the request by the judge. Possible application of precautionary measures.

Second. Judicial resolution declaring the insolvency proceeding or rejecting the request for insolvency proceeding. 

Third. Determination of the active mass of the company. 

Fourth. The passive mass is determined and the credits (debts) that the company has are classified. (Special, general, ordinary and subordinated).

2. Agreement phase

In this phase the proposals of agreement presented by the debtor and any creditor will be received. Said proposals must contain a proposal for a reduction or  be able to include both in the same agreement, always specifying a detailed payment plan. 

The proposals must necessarily imply the continuity of the business or professional activity of the debtor. 

Once the proposals have been presented, the creditors may vote at the creditors’ meeting for the one they consider most favorable to their interests. If any proposed arrangement obtains a sufficient majority to be approved and does not suffer from any defect or infringement, the judge will approve the arrangement.

3. Liquidation Phase

The insolvent debtor may request at any time during the insolvency proceedings that the liquidation phase be initiated. 

The liquidation phase will also be opened when no proposals for reorganization agreements have been presented or when reorganization agreements have been presented but none have been approved, among other cases. 

Once the liquidation phase is opened, the debtor will lose all its administration and management faculties, being the insolvency administrator the person in charge of doing so. 

The liquidation consists of selling all the debtor’s assets with the objective of paying the maximum possible debt, following the order of priority established by law. 

4. Qualification Phase

In this phase a reflection on the insolvency proceeding is carried out in order to classify it as fortuitous or guilty. 

The insolvency proceeding is considered guilty when the debtor is guilty of fraud or gross negligence in the generation of insolvency. 

When the insolvency proceeding is declared as culpable, the affected parties will be disqualified from administering the assets of others, sentenced to return the assets or rights that they have unduly obtained from the debtor’s assets and will have to compensate for the damages caused.