Investing in property- can you pay an experienced developer?

[Leicesterdave]

....to help?

I would like to invest in property but have no idea what I'm doing. I'd rather share a cut of a potential profit with an experienced developer. Is there such a service??

[GT03ROB]

So what are you offering to justify your return??

[cootuk]

Do you mean a project manager to solely manage trades, or someone who will take your vision and money to develop a property from scratch with you keeping relatively hands off?
Whatever budget you have, add a good chunk extra for overspends.

[Leicesterdave]

A percentage of the profit.

Someone who would, for instance, attend an auction with me, spots a good investment opportunity and knows what is needed to turn it around and knows to be a potential profit in it.

[bobtail4x4]

Lots of builders/developers have a "sugar daddy"

someone who puts up the money for a return.

[otherman]

How about housecrowd.com

[Moonhawk]

GT03ROB said:

So what are you offering to justify your return??

Presumably cash.

[jas xjr]

Auctions are not necessarily the best places to buy from. Many years ago I had a contact at a local estate agency who would let me know what the reserve would be,before the property went to auction. For a small consideration, of course.

[z4RRSchris]

Yes

Do you have £100m?

[TooMany2cvs]

Leicesterdave said:

A percentage of the profit.

Someone who would, for instance, attend an auction with me, spots a good investment opportunity and knows what is needed to turn it around and knows to be a potential profit in it.

Why wouldn't they do that themselves for ALL of the profit?

[z4RRSchris]

TooMany2cvs said:

Leicesterdave said:

A percentage of the profit.

Someone who would, for instance, attend an auction with me, spots a good investment opportunity and knows what is needed to turn it around and knows to be a potential profit in it.

Why wouldn't they do that themselves for ALL of the profit?

because unsurprisingly property development ~(even more so in a flat market) is actually a skill.

in a up market any fker could buy a house, hold it for 18 months and sell it for profit.

[TooMany2cvs]

z4RRSchris said:

TooMany2cvs said:

Leicesterdave said:

A percentage of the profit.

Someone who would, for instance, attend an auction with me, spots a good investment opportunity and knows what is needed to turn it around and knows to be a potential profit in it.

Why wouldn't they do that themselves for ALL of the profit?

because unsurprisingly property development ~(even more so in a flat market) is actually a skill.

Yes. I know.

So why doesn't the person who's skills Dave wants to borrow just do it all themselves for all the profit?

What is Dave bringing to the party? Some capital? A good developer won't find that hard to source.

[z4RRSchris]

TooMany2cvs said:

z4RRSchris said:

TooMany2cvs said:

Leicesterdave said:

A percentage of the profit.

Someone who would, for instance, attend an auction with me, spots a good investment opportunity and knows what is needed to turn it around and knows to be a potential profit in it.

Why wouldn't they do that themselves for ALL of the profit?

because unsurprisingly property development ~(even more so in a flat market) is actually a skill.

A good developer won't find that hard to source.

you would be surprised.

[Leicesterdave]

So does it exist?

[p1stonhead]

You simply want a joint venture partner.

They stump up the skills, you stump up the cash, split the profits.

Done day in day out.

Lots of developers are looking for rich backers to take on some of the risk rather than wholly bank funding for example.

[cashmax]

A slightly different angle, but many property developers on the low end will pay around 1% per month to borrow funds in a quick and flexible fashion. Given they are normally asset rich and cash poor, choose well and make sure the LTV rate is low and you will have some very good security and safe income. Not exactly the same, but a more predictable income stream, which will turn into opportunities to leave cash in and risk direct investment into the projects should you wish to do so.

[Leicesterdave]

cashmax said:

A slightly different angle, but many property developers on the low end will pay around 1% per month to borrow funds in a quick and flexible fashion. Given they are normally asset rich and cash poor, choose well and make sure the LTV rate is low and you will have some very good security and safe income. Not exactly the same, but a more predictable income stream, which will turn into opportunities to leave cash in and risk direct investment into the projects should you wish to do so.

Could you expand on that- how do I find out more- this is a good shout certainly!

[jonamv8]

I woke with some guys in the BMV sector, they enter into arrangements whereby they are funded by a third party and share the profits or pay a monthyl %age on the amount. You could look into this. These chaps are experts in property trading though, not developing per se although they do develop some of their buys if they feel there is more profit to make. Day to day though they look to flip properties to investors.

[Leicesterdave]

jonamv8 said:

I woke with some guys in the BMV sector, they enter into arrangements whereby they are funded by a third party and share the profits or pay a monthyl %age on the amount. You could look into this. These chaps are experts in property trading though, not developing per se although they do develop some of their buys if they feel there is more profit to make. Day to day though they look to flip properties to investors.

Thanks for this- again where would I find more info on this?

[trowelhead]

Leicesterdave said:

Could you expand on that- how do I find out more- this is a good shout certainly!

Dave, you can find people like this a few ways:

Attend local property networking event (progressive, property hub etc), loads of developers who are looking for JV partners, just do PLENTY of due dil and make sure your money is secured with 1st charge on property

Look on various uk property groups on facebook.

1% per month should be attainable.

Or you can lend it via savingstream etc at 1% per month, basically you are acting like a bridging lender

Depends if you like the idea of being hands on with a project or not?