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Practical guide

Working with Developers & Capital Raisers

Developers raise capital to fund property projects. Investors provide the money for a fixed return or profit share — but it carries real risk if not done properly.

Typical Deal Structures

  • •Fixed return: e.g. 10–15% p.a. secured on the project
  • •Profit share: % of net profit on completion
  • •Equity stake: ownership share in the development SPV
  • •Loan note: formal debt instrument with a fixed term

Red Flags

  • •No legal agreement or security offered
  • •"Guaranteed" returns (capital is at risk)
  • •No track record or references
  • •Pressure to invest quickly
  • •Unregulated collective investment scheme

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