CONSOLIDATE DEBT
GET OUT OF DEBT REVIEW
Improve your credit score. Real Estate Assist helps you recover from short-term debt without debt review and we will help you build financial courage to shorten the delay in your financial recovery. Turn your credit score around without further delay and increase your cash flow through our financial courage program. View a case study of this type of assistance.
To qualify for this assistance, you must own property, and to keep your property you need a consistent stable income.
a Typical Example
Here is how the real estate assist team can help homeowners.
The examples we illustrate here are real case studies of how Real Estate Assist helped distressed real estate owners.
Case Study
Frangipani Street, Brackenfell, South Africa
The owner recently got divorced and their previous employment contract was canceled. They had arrears on a mortgage bond, short-term debts, and school fees. They had a bond LTV of 40% on higher-value property that required only cosmetic renovations. The owner secured a temporary employment contract but was still unable to settle their arrears. Sale in execution procedures was then instituted by the mortgage bondholder. They required access to equity in their property as soon as possible to provide a stable environment for their children.
Assist Group’s Intervention and Solution
- Sell the property to the investor at less than market value to stop the sale in execution
- Provide rental agreement and perpetual option linked to a lease to the previous owner
- Utilize proceeds for settlement of debts after transfer and cosmetic renovations
- Should option linked to a lease not be exercised then the property is sold to a third party
- Sale in Execution procedures stopped. Pay predetermined profit to the investor as contractually agreed
- The remainder of proceeds payable to the property owner on transfer to third party purchaser
Results
- Sale in execution averted after-sale to investor
- Debts settled from proceeds after transfer to the investor and school fees paid
- Temporary employment contract not renewed to enable exercise of the option
- Rental agreement and option fees paid for 21 months provided a stable environment for children after divorce
- Property sold to the third party with listing after maintenance to maximize proceeds
- Pre-determined profit paid to investor and remainder of proceeds to the property owner
Value Created
- Current Market Value: R 2,300,000
- Auction Value @ 60% R 1,280,000
- Actual Sales Value R 2,800,000
- Equity value saved for owner. R 1,420,000
Costs
- Transaction Costs: R 281,965
- Renovation Costs: R 13,563
- Investor Profit: R 362,454
- Rental Saving: R0,00
- Net costs for the owner R 657,982
