How are the returns on the Fund & Develop With Us investment created and able to provide a higher return than other investments to investors?

The Fund & Develop With Us investment program offers a unique approach to investment returns. Unlike traditional investments, funds invested in this program can be used multiple times on various projects, rather than only once. For example, when investing in a property with a developer, the developer typically makes a one-time profit of 20-30% when the property is sold.

However, by investing in the Fund & Develop With Us program, the developer can use the funds to purchase a property, renovate it, and sell it within approximately 3 months. This process can be repeated up to 8 times over the 2-year term, resulting in an average profit of 20-30% per property and a total profit of 160-240%.

Even if a developer achieves only 50% of their typical profits, the program guarantees fixed returns of 24% over the two-year term, making it an attractive investment option for both the client and the developer.

When selecting properties for development, what is the criteria?

The developer will always look to earn at least a 20% to 30% return on project costs. To calculate this, they utilise the developer appraisal software used by all leading developers and agents. The appraisal process is a rigorous one and reflects the continuous drive to achieve the highest professional standards. A thorough due diligence exercise is undertaken on all potential projects, with any concerns resolved before an investment is made. If this is not possible, the investment will not be made.

How are investment decisions made?

The Property Board makes all investment decisions. The members include all executive directors as well as key parties from the advisory board.

What evidence of success do you have?

The developer has been building and developing sites now for many years, with over 160 projects completed and other sites at various stages of refurbishment that can be viewed at any time.

Where are client funds held?

Client funds are held in the limited company that the security trustee holds the first charge and debenture over.

Who administers the funds?

The advisory board meets every two weeks to discuss current, ongoing and potential projects. At these meetings, only expenditures and disbursements that are agreed by the advisory board can be utilised.

Who pays the returns?

The returns are paid by the development company direct to the client.

Why use loan note funding rather than bank finance?

Development is funded using bank funding occasionally but does not rely solely on it. Bank funding can take time to arrange, up to 3 months. So the developer has developed a multi-sourcing strategy utilising high net worth and sophisticated investors, institutions, and family offices.

How are client funds utilised?

Client funds are utilised as a portion of projects along with bank funding and the developer’s own funds.

Typical levels are: 65% Bank Funding, 25% Investor Funding and 10% Developers Own Funds.

Client’s funds are generally spread over 8 - 10 projects all at various stages, from nearing completion, midway, nearing start and about to be purchased. This diversifies a client’s risk as not all funds are in one project.

How does the security work to protect loan note holders?

A security trustee has been appointed to represent the interests of the loan note holders. The security trustee holds a first legal charge when a land site or building is purchased, and the security trustee holds a mortgage debenture over the company's assets.

When will interest begin to accrue on my loan note?

As soon as investment funds have been cleared into the developer's bank account, interest on the loan notes begins to accrue. Loan note holders can choose when interest payments are paid to them. The choices available are to be paid every six months or to have interest accrue and be paid after two years.

How are our investment funds utilised?

Funds are utilised to buy land and properties for development or conversion.

How long has the company and its management team operated in the property sector?

The management team has extensive property sector experience, with the primary owners starting the company in 2015. Property Board members ***** and Daniel Warwick each have extensive experience of this market sector.

Is there a risk that we will be unable to source enough land and property opportunities to develop?

The developer has amassed a significant pool of potential projects through their vast agent network since 2015. This network has grown extensively, and agents are aware that if the property matches the prescribed criteria, it will be purchased. As a result, the developer is a highly sought-after partner to collaborate with.

How will I know when my investment has been received?

Investors receive a welcome letter and loan note instrument sent directly by the company and a gift to their home thanking them for the investment.

Is there any currency risk when I invest?

The developer invests in the U.K., so there is no remittance exchange risk. Funds are received in pound sterling and paid out in pound sterling on project costs and interest payments, and the return on investment is also paid in pound sterling.