Hello

Hello

Hello Lenders!

I thank you all for the support accorded to our online business so far. It has been a great experience since we joined Zidisha. I shared the news about Zidisha to friends and relatives and they have started enjoying affordable financing from you. The previous loans have seen growth of our business in terms of profits through cost cutting and increased revenue per month. We would now like to use the profits to expand our business by Investing in the real estate sector.

To kick start this noble idea, we hereby apply for a fourth loan to raise capital for the start up costs. About five years ago my wife and I used our savings to buy 100*65 feet piece of land in a prime location in the outskirts of Nairobi city. In this land we want to erect rental apartments to supplement our online business income. The land has been idle since then due lack of capital to invest. To start on the project we require an architect plan, structural engineer plan, county government approval, change of user and environmental impact assessment approval.

The project has been inspired by the fact that there has been increase in middle class population working in the city and requires affordable and decent rental apartments. The cost of land and construction has increased and thus people now prefer to rent than buy houses. This project will create employment for young youths in the construction sector in our community.

Here is a breakdown of the preliminary expenses of the project.

1. Architect layout - $438.00

2. Structural engineer plan - $219.00

3. Change of user and environmental impact approval – $438.00

4. Public health and county government approval fees - $766.00

5. Bill of quantity - $328.00

Total costs - $ 2189.00

I have already engaged an architect and paid a deposit of $219.00, the drawing should be ready in a few weeks time. The balance of the funds will come from savings from our business. This is a long term project which we are anticipating to complete within the next ten years. The first phase will comprise of a three bed roomed for my family and 9 one bed roomed apartments; which when complete will generate passive income of about $1300 per month. The savings from the project will be reinvested in building more rental apartments. In short, the blueprint (our dream) of the project is a four storey apartment with 50 rental units generating before tax and expenses passive income of about $5,700.00 per month. The total cost of the project is estimated to be $820,000.00. We are planning to raise more capital from potential investors in exchange of controlling equity in the project. A proportion of net passive income will be used to pay dividends to investors and rest will be transferred to retained earnings for future investments.

A 1000 miles journey starts with a single footstep; we have just made the first step in realizing our dream. Thank you lenders and Zidisha community.

Regards

Isaiah Githaiga