Francois R Rust
Bloemfontein (ZAF)
Role(s):
Founder/Owner/Principal
RustCo Holdings
Find More Startups
Startup
Location:
Bloemfontein
Industry:
Real Estate
Year Founded:
2007
Number Employees:
1-10 people
Description:
I have started a new Group in 2007, RustCo Investment Holdings (Pty) Ltd. (RustCo. Investments (Pty) Ltd., RustCo. Properties (Pty) Ltd., RustCo. Management (Pty) Ltd., SCE Debt Elimination Experts and (URL removed))
We have put an alternative option in the market for property owners in South Africa who are in financial difficulty due to the current financial situation in our country.
Due to the fact that the property market in South Africa has changed from a sellers market to a buyers market the last 12 months (30% less buyers and 40% more properties on the market) the high interest rates and inflation rates, current property owners are struggling to keep their head above water and are struggling to sell their properties or struggling to get second bonds or finance to carry them through this market cycle.
We have designed a double leverage system where we consolidate property owners debt in their property whereby we buy 50 to 75% of the property form them through one of three new products.
a) The Investment Option (New Tenant)
b) The Sell to Rent Option (Owner Tenant)
c) The Sell to Rent with Buyback Option (Owner Tenant)
The property owners now use the profit he or she made from selling his 50 to 75% of his property to pay off all his or her outstanding bad debt.
A bond of only 50 to 75% of the value of the property is raised at one of our banks in South Africa and the remaining 50 to 25% equity is used by the company to give us the double leverage effect. (Using the banks money and the equity of the previous 100% owner)
The previous 100% property owner now rents the property from the company at between 6 to 9% (Residential Property) and 11 to 13% (Commercial Property) of the value of the property depending on the area, the value, the percentage buyout and city we buy the property.
This gives the Company the double leverage effect where the rental income now doubles, 12 to 18% on Residential property and 22 to 26% on Commercial property from month one due to the fact that the Bond is only 50 to 75% of the value of the property.