Frequently Asked Questions (FAQ)

Home Owner

Question 1: Are you estate agents?

No - We are not estate agents. We are a property investment company that buy property/properties privately from sellers. This helps save the seller from paying commission on the sale of their property.

Question 2: What influences the price at which you will offer me for my property?
The offer price is based on various factors that are taken into account such as the condition of the property, the location, market value etc. We make every attempt to offer a fair price to all sellers based on these factors whilst also including a margin of profit for our business.
Question 3: How quickly can a sale be concluded?
This depends on the situation the Seller finds themselves in as well as other external factors. The normal transfer process in South Africa can take between 3-4 months, however a deal can be structured in such a way as to benefit both ourselves and the seller by either shortening or lengthening the time period for transfer of the property.
Question 4: Are you able to assist with outstanding Municipal, HOA and levy accounts?
Yes - We are able to help the seller fully or partially settle these debts before a sale of their property is concluded.
Question 5: Will you make me a cash offer?
In some instances we will make a cash offer your property or alternatively arrange bond finance for the purchase price. This is dependent on what our use for property will be once it has transferred to us.
Question 6: What do you do with the properties that you buy?
Dependent on various factors, we generally buy a property, renovate it and sell it on. We also sometimes lease out properties as well as find more creative alternatives for those sellers that find themselves in a unique situation.
Question 7: What areas are you focused on?

At present, we focus on the Johannesburg area, with the idea of increasing our footprint nationally by year 2022.

Question 8: How quickly can you make an offer on my property or find a unique solution for me?
We have a turnaround time of 24 hours or less.
Question 9: If you make an offer on my property, am I obliged to take it?
No, all offers are made obligation-free and it will not cost anything to find a solution for you.
Question 10: Do you handle all the legalities of a property sale?
Yes. We have dedicated transferring attorneys and conveyancers that handle all of the transfer legalities on behalf of ourselves and the seller. However, as per Property law, the seller has the right to use their own attorney for the transfer of their property should they not wish to make use of ours.

Investment

Question 1: I have funds I’d like to invest, how does it work?
Generally we present you with detailed information on all of the projects that are available for investment and you can make an informed decision on what projects you’d like to inject capital into.
Each project will specify different time periods of investment, different rates of return, various risks etc
Question 2: Is there a minimum size investment that I have to make?
At present, we are considering investments of R20 000+ across our projects. Eventually we would like to get this threshold low enough to accommodate investments as low as R50+.
Question 3: When one invests with KOURO, is any paperwork signed?
Yes. KOURO pride themselves on ethical and legal business, and require paperwork to be signed so that there is no ambiguity about what the investment entails.
Question 4: What happens to my investment if a project fails?

As with any type of investment, there is always going to be an element of risk present and a project is never guaranteed to be successful. KOURO however ensure that all investors are first in line for the repayment of all monies from any profits or capital made available from the project before KOURO benefits from this.

Question 5: How can I be confident a deal is good deal?
KOURO do a thorough analysis of each deal before it is opened up for investment. Each and every investment proposal will contain detailed info including market analysis, financial feasibilities, deal-specific reports etc.
Question 6: Have KOURO ever done a BAD deal?
Yes. In the past, there have been deals that have not turned out successfully. KOURO always keep detailed reports of each and every deal that we have ventured on, and we can provide details on deals that didn’t work out, why that occurred and how we have learnt from it to make us better at what we do.
Question 7: How do funds get released once one has signed up to invest?
You will be invoiced for the funds once we are ready to call for them on a particular project. Amounts under R100 000-00 are usually requested in their entirety. Funds exceeding this amount may be requested in draws at different intervals.
Question 8: Can I invest through an entity?
Yes, you may invest through whatever entity you wish, so long as you have signing power and a resolution from the entity allowing you to do so.
Question 9: Am I able to re-invest or invest multiple times?
Yes, there is no limit to the amount of projects you can invest in at any given time and KOURO will always have new and exciting opportunities to re-invest in at the conclusion of any project.
Question 10: What areas are you focused on?
At present, we focus on the Johannesburg area, with the idea of increasing our footprint nationally by year 2022.
Question 11: How Does The Joint Venture / Jackpot Option Work On Properties To Be Kept For Rental Purposes?

Should an investor or entity be willing to fully fund a particular deal in its entirety, they have the option of receiving an equity stake or profit share in relation to that deal depending on certain factors.

 

If the aim of the deal is to retain the property for rental purposes, and the investor or entity provides all the funding but does not / cannot stand surety on a mortgage bond from a financial institution, they can receive up to a 30% stake in the property and receive 30% of the monthly cash-flow. The initial capital injection will be paid back upon the refinancing of the property which usually occurs within 6-12 months of a deal commencing.

 

Should an investor or entity be willing to fully fund the project AND stand surety over any mortgage bond from a financial institution, they can receive up to a 50% stake in the property and receive 50% of the monthly cash flow. The initial capital injection will be paid out upon the refinancing of the property which usually occurs within 6-12 months of a deal commencing.

Question 12: If I Choose The Joint Venture / Jackpot Option, Do I Receive Interest On My Capital Injection When The Property Is Refinanced?

No. The idea is to benefit from the monthly cash-flow of the property on an ongoing basis and essentially have all your capital returned to you within a 6-12 month period so that you enjoy infinite returns on your capital whilst also benefiting from having a part-ownership pf the property depending on the level of risk and resources one has contributed to the deal. (Monies invested, Suretyship provided etc)

 

From here, the idea would be to re-invest the capital into another project and repeat the process.

Question 13: Do KOURO Also Stand Surety Over Mortgage Bonds Taken Out Over Properties?

Yes, we do. This assists our investors in lessening their risk that they have in getting involved in these types of deals and also provides sufficient backing in attaining the required finance from financial institutions.

Question 14: How Does The Joint Venture / Jackpot Option Work On Properties To Be Flipped or On-Sold?

Should an investor or entity be willing to fully fund a particular deal in its entirety, they have the option of receiving a profit share or preferential ROI in relation to that deal depending on certain factors. The preferential rate of return offered for full funding of the deal will be higher than what is offered to investors who partially fund the deal. The investor will receive the lower amount between the ROI offered or the % profit split offered. This is to ensure the balance of risk from both parties so that profits are adjusted in relation to the performance of the deal.

 

I.e. If 15% p.a. ROI is offered as the preferential rate of return on R500K invested into a deal, and deal concludes over a 6-month period, the interest due on R500K at the conclusion of the deal will be R37 500. Should the profit made on the deal be R300K, then the investor will receive their capital back with the R37 500 interest as opposed to 15% of the profits (R45 000) since the investor gets paid out the lower amount between the two.

 

If the profit made on the deal is R200K, then the investor will receive 15% of the profits, as this will be the lower amount as compared to the preferred ROI of 15% (R37 500). The 15% of profits in this case will be R30 000, resulting in a 12% p.a. ROI. The return is lower here because the deal did not perform as well as expected.

Partners

Question 1: What type of partners are you looking to work with?
Reputable businesses that are related directly or indirectly to the property industry that can add value to KOURO and its customers.
Examples would be building contractors, building suppliers, attorneys, retail stores etc.”
Question 2: What are the requirements to partner with KOURO?
We are seeking partners that hold themselves to high standards and ethics. Where a strong synergy exists, both parties will negotiate a partnership to allow for beneficial growth.
Question 3: How will my business benefit from being a KOURO Partner?
Being in the property industry has allowed KOURO to network with many individuals and customers of which KOURO’s Partners will also benefit from in order to grow their business reach. KOURO takes pride in their partnerships and are happy to associate and promote the brands of their partners.
Question 4: Is there any documentation or paperwork involved when partnering with KOURO?
Yes, we generally like all partnerships and the details thereof to be documented to protect both parties from any ambiguity.
Question 5: What do you do with the properties that you buy?
Dependent on various factors, we generally buy a property, renovate it and sell it on. We also sometimes lease out properties as well as find more creative alternatives for those seller’s that find themselves in a unique situation.
Question 6: What areas are you focused on?
At present, we focus on the Johannesburg area, with the idea of increasing our footprint nationally by year 2022.