Invest into UK Property Development Projects
Typical investments will be offered on either an equity basis, giving you a share of the projects profit or a simple loan structure which offers you a fixed return over a set period of time.
Invest into UK Property Development Projects
Typical investments will be offered on either an equity basis, giving you a share of the projects profit or a simple loan structure which offers you a fixed return over a set period of time.
Why Do Developers Work With Investors?
An ambitious developer must have the knowledge to raise capital in various ways. Banks, building societies, specialist lenders, family offices and private investors are all crucial to a growing developers success. A good developer will have a clear financial analysis process to determine the project’s viability and the best methods to fund the project through its various stages.
Working with an investor on an equity or loan basis can provide developers with a distinct advantage in the market place by allowing to acquire quickly or complete work required.
Equity, Explained
In the property market, equity investment or a joint venture (JV) is simply where developers and investors contract with each other for a particular development project, with the ultimate goal of sharing the profits at the end.
A equity investor’s role is to provide funding to the project, with the developer taking on the responsibility of sourcing the project and completing the development from start to finish.
Loans, Explained
All developers borrow money to fund projects. If you are a large national house builder, you may well be able to walk into your high street bank and secure funding to develop your project at a nice favourable interest rate.
However, if you are a small to medium sized developer, it is likely the doors to those favourable rates are firmly closed to you, meaning you will typically borrow money from other sources.
Key Benefits
Diversification
Hands-off
Security
No management
In order to receive live opportunities, you must first register as an investor and then complete the self-certification process, you can do this by clicking the button below.
Key Benefits
Diversification
Hands-off
Security
No management
In order to receive live opportunities, you must first register as an investor and then complete the self-certification process, you can do this by clicking the button below.
How It Works
When a lender or investor provides capital to a property developer, they have the right to ask for a fixed legal charge over the property in question. Alongside that, it is perfectly reasonable to also ask for a debenture over the wider portfolio and, in some cases, a personal guarantee from the owner of the development company on top.
What this effectively means is that your work is done at the front end, conducting due diligence, verifying the project and assessing the security on offer. Once this is done and you are happy to move forward, you have a completely hands off investment and it over to the developer to deliver the project as planned.
“Introduced to the company by my architect who has other clients who have worked with Cator Wells.
I found them to be highly professional and exceptionally knowledgable when it comes to property development and the financing options available.
I have financed two projects through them so far and will be doing more in the future.”