Project Name: 11NSB
Address: 11 Nora Street, Blairgowrie
Project Date: January 2020
Status: Phase 1 Renovations Complete
We were made aware of this property all the way back in mid-2018. We received a message from someone who had seen our flyer and they got in touch with us to explain their situation.
The situation was that a widow had gotten in touch with us in the hopes that we could buy her home from her. The property however was in the name of her late husband and she was facing eviction due to the Estate of her late husband being insolvent.
Her circumstances were made even tougher as she had the challenge of needing to make a bit of money for the Estate, of which she was an Heir, off the sale of the house so that she could continue to support her kids and take up a new job in the UK. The only way she could do this however was to sell the property for well above its market value to settle the debt of the Estate and leave a surplus she could inherit which was near impossible due to the condition of the property and the market conditions at the time.
She reached out to us in the hope that we could find a solution. At first, we struggled to see past the outstanding debt and when we made her an offer that couldn’t meet her expectations, neither party saw a way forward with each other.
Some months passed by and we decided to get in touch again to see if the house had been sold - It hadn’t. This gave us a feeling of determination to try close this deal in the best way possible. We knew there were several parties to satisfy in this deal, namely:
- The Heir to the Estate
- The Executor of the Estate
- The Bank that held a bond over the property
We started looking at the deal from a different angle and we decided that the only way we were going to get this deal done was to satisfy all parties involved. We knew that the bank were going to be the biggest party to satisfy, so we decided to speak to them and see what offer they would be willing to accept given the circumstances. We needed to buy this property at a fair enough price in order to still come out profitable after we put in the costs of the renovations, so we knew, that if we knew what price the bank would expect to achieve on this property at auction should the repossess it, and if we could come in close around that mark, we may be able to convince them that our offer was sufficient. We managed just that.
The goal of the executor was to have the property sold and the estate wound up as soon as possible. This wasn’t a difficult need to solve as it pretty much tied in with our goals. So we knew we could accomplish that.
The Heir to the Estate needed some capital in order to move onto the next chapter of her life. We figured that we could help her and her kids move on by personally assisting her with a monetary contribution should we be able to secure the property at a favorable price, of which we could factor this into our all-in costs. We managed just that.
When we brought this umbrella solution to all the affected parties, we knew we had a good deal for ourselves and that’s when we took action and signed the deal up.
The Heir to the Estate successfully emigrated with her kids and started a new life.
The Executor and bond holder were able to sell the house, and we got a great deal whereby we were able to add another property to our rental portfolio.
Renovations began on 6 January 2020 and took 4 weeks to complete. We turned the space into something modern and practical, for those looking to rent space close to Randburg and Sandton.
Phase 2 renovations are due to begin towards the end of 2020 or early 2021.