An update on case studies from our finance partner:
Wages only: A contractor complained to me that he was tired of 'working just for wages' and making everyone else big profits. By way of our various development solutions, including equity investors, we have ensured that our contractor no longer 'works just for wages'.
Stop Start: A developer with around 5 years experience and circa £500,000 of capital, bemoaned that he funded his own projects because his own bank confused him. The problem was that he built out a project and then had to await the sale of the newly built units before he could consider the next project. Hence the 'stop start' complaint. However we showed him how we could obtain 95% of project costs with no profit share to maximise his capital. Furthermore, we showed the client how our equity investors could help, thereby allowing him to be running at any one time at least 4 projects simultaneously. This has allowed the developer to really 'scale up'.
No Capital: An ambitious first time developer approached our office with a potential scheme that was very profitable. Unfortunately the developer had 'no capital'. However, the landowner was very bullish about the land sale and helped by agreeing to defer some of the land purchase price. Furthermore, we arranged senior debt to ensure 100% of all other costs were covered. Finally, the developer earned 100% of the profits.
Minimal Capital: A newco developer was created by three individuals, with minimal development experience and minimal capital to invest. Their first project was to buy a freehold hotel off the administrators and convert it into apartments. By way of our professional contacts, a funding package equating to 95% of project costs was arranged. Furthermore, this office arranged for the apartments to be pre-sold to one of our long term residential investment funds. Finally, the client retained 100% of the profits despite the 'minimal capital' invested.