Property Development Case Studies

100% Finance: A first time developer spotted an opportunity to buy a pub to then convert it into a 4 bedroom house and build 9 houses in the grounds. The applicant had no liquid cash as an input. However, there was sizeable equity in this private residence. This office arranged 100% finance to buy and build out with the funder taking a charge on the private house as makeweight security. 

Deferred Consideration: A restaurant owner had an outlet with a large car park. He had obtained planning to knock down the restaurant and build out 17 starter homes. He wanted to sell the project to a builder who had insufficient resources to input any funding. This office arranged 70% of the land purchase and 100% of the build costs to allow the project to progress. The 30% of the purchase price was left in by the vendor by way of a deferred payment that was honoured from property sales.

100% Joint Venture Finance: An experienced developer was in the middle of a large project which had used up his Working Capital. He spotted an opportunity to buy and build out a project but had no cash reserves or assets with equity. In turn, this office arranged a finance package whereby the funder provided 100% of all costs in return for only 40% of the profit. The developer input nothing into the project but retained 60% of the project profits.