Meet Peter, who chose LendInvest to help him complete a property development in Broadstairs, Kent.
When the recession hit he realised that at some point it would start recovering, so he spent many months looking at auctions and plots of land, investigating the possibilities of developing some new-build residential properties.
In June 2013 Peter incorporated his company and went to auction. Soon afterwards he went on holiday, and whilst away he received the results of the auction he’d attended. One of the plots hadn’t sold, and it happened to be one of the plots he’d had his eye on. He visited the auctioneers, agreed to the guide price and began the development in January 2014.
The plot came with permission to build three detached three bedroom bungalows and the refurbishment of an existing two bedroom detached bungalow. With limited cash behind him, Peter funded the project partly with his own funds and partly through a high street bank, which had very strict lending criteria. Money was tight, and it was a tough time for him and his family. For the best part of 8 or 9 months he stayed in the existing dilapidated bungalow 3 nights a week to get the business on a sound footing. He project managed and laboured, doing most of the decorating himself.
Towards the mid part of the project he was contacted by a broker who put him in touch with LendInvest, which he says was good timing as he was on the lookout for a new development project. Very quickly we were able to help him restructure the business and increase cash flow to complete the existing development, which enabled him to move onto the development of 14 units in Broadstairs, Kent. Every one of his first properties were sold just prior to completion and the project was successful.
When Peter’s existing contact got in touch about the plot of land in Broadstairs, he needed to make a decision very quickly. They already had a purchaser who wasn’t coming forth with the funds, and needed a decision within a week. When Peter contacted the deal team at LendInvest, we were able to give him a quick decision, which meant he could move forward with the development. The site had two planning permissions; one for 6 semi detached houses and the second for 5 terraced houses and three two bedroom cottages.
From suppliers and subcontractors, right the way through to lenders, Peter started his business with the idea of using local, professional and pro-active people wherever he developed.
‘The main attraction for me in working with LendInvest is that they tailored their offer and lending criteria to help suit my business as well as theirs’.
Being a new business Peter had limited funds and cash flow, so bridging finance helped him to move onto the next project.
‘The offer was fast, efficient and suited both parties – exactly what I needed at the time – and it’s enabled to continue my business successfully.’
We asked Peter to share his advice for budding property developers – watch this here.