Development Finance

How to Profit as a Property Developer

Successful property developers use a range of strategies to generate returns. Each method carries its own risks, capital requirements, and timelines.

1. Flipping Properties

Flipping involves purchasing undervalued properties—often in need of repair or sold below market value—then selling them quickly at a profit. This approach demands a strong grasp of market trends, quick decision-making, and access to fast capital. While returns can be high, success hinges on identifying the right deals and executing sales efficiently.

2. Property Refurbishment

Renovating and reselling properties is a proven strategy. Upgrades—whether cosmetic or structural—can significantly boost value. However, competition for viable projects is intense, and speed is critical. A solid contractor network, local market knowledge, and fast financing are essential to success.

3. Property Conversions

Converting properties (e.g., single homes into flats, or commercial to residential) can yield strong returns by unlocking hidden value. These projects typically require planning approvals, regulatory compliance, and higher upfront investment. Despite added complexity, conversions in high-demand areas can be highly profitable.

4. Ground-Up Development

Building from the ground up—whether single units or large-scale developments—offers the highest profit potential but also the greatest risk. It demands careful planning, substantial funding, and the ability to navigate zoning laws and construction timelines. Smart design and sustainable features can significantly enhance long-term value.

Securing Development Finance

To secure development funding, you must present a well-prepared, detailed proposal. Lenders evaluate risk and feasibility, so clarity and professionalism are critical.

Key Requirements:

• Planning Permission
  Submit full planning documents, including drawings and approvals, so lenders can assess the project’s scope and viability.

• Planning Restrictions
  Disclose any constraints, including Community Infrastructure Levy (CIL) obligations, as these can materially impact profitability.

• Detailed Cost Breakdown
  Provide a full cost schedule—including build costs, professional fees, and contingencies—to help lenders assess feasibility and structure drawdowns.

• Development CV
  Your track record matters. Highlight relevant experience, qualifications, and past successes to build lender confidence.

• Schedule of Works
  Break down the development into clear phases with timelines. This shows organisational capability and supports staged payment structures.

• Team Overview
  List key professionals (architects, contractors, consultants), emphasising experience and reliability to strengthen your application.

• Exit Strategy
  Outline how you plan to repay the loan—whether through sale, refinance, or rental income—with supporting market research.

• Gross Development Value (GDV)
  GDV should exceed total costs by at least 20%. Support your valuation with evidence from local agents and comparable sales.

Expert Support & Staged Drawdowns

Many lenders prefer working with applications submitted through experienced brokers. Our team ensures your proposal is fully packaged and ready for review—accelerating approvals and reducing delays.

Staged Drawdown Structure

To minimise interest costs, funds are released in phases, such as:

• Land/property acquisition

• Site clearance and groundwork

• Structural build (walls, roof)

• Completion of watertight shell

• First and final fixes

We coordinate with your lender to align drawdowns with project milestones, ensuring smooth cash flow and financial control.

Get Expert Finance Support

Whether you're developing a single property or a large-scale, multi-unit project—residential, commercial, or international—we tailor finance solutions to your specific needs.

Contact us today to streamline your funding journey and maximise the profitability of your next development.