We encourage our starter clients to start small and increase the size of their property portfolio as they gain the necessary confidence and ability through experience. This approach facilitates the entrepreneur’s ability to change from a part-time to full-time property entrepreneur. We work with you as our client on a feasibility document to ensure that the project will earn enough money to cover your utilities, rates and taxes, bond and operating expenses. Therefore we do not finance you based on how much money you earn, but rather on whether or not your project will be able to cover all costs and expenses on its own. More importantly, we look at who you are as a person; we call this our character based lending approach. When considering your loan application, we look at the collateral value of the building, and will lend to a maximum of 80% of the collateral value. This means we look at the total project cost and will provide up to 80% finance of this cost. You as entrepreneur have to contribute the other 20%. If you do not have the full 20%, please visit our
Intuthuko Equity Fund. TUHF also looks at the cash flow of the individual or business and requires that the ratio of net income after expenses to loan repayment be 1.3.
TUHF Entrepreneurs:
- have an honest and reliable character
- know the inner city areas in which they’re investing
- have the right property management skills and network of contacts for the size of their project
- can provide good customer service and firm credit control
- are proud of owning well-maintained, clean buildings
- are confident they will make sufficient profit from their business
- have the interests of urban regeneration at heart
TUHF Projects:
- are in major city centres that are in urban decline
- are close to schools, transport systems and places of work
- are economically sustainable - able to generate sufficient income to repay expenses, as well as service the loan and make a profit
- will upgrade buildings in the selected inner city area providing affordable and decent residential rental units
- have a positive effective on the areas in which they are based.
