INVESTMENT

If you are a private client looking to invest within the property development market, we can offer joint venture opportunities to help you make the most of your capital or even build your property portfolio.

The Joint Venture investment operates as follows; 

  • The Client Investor purchases the property and registers it in their own name.

  • The Client is responsible for the Land, Sales and Build Costs.

  • The Client signs a JCT Design and Build Contract with Fit Out Projects (acting as the Main Contractor) for the total construction cost.

  • Fit Out Projects will invest up to 50% of the construction cost via monthly build valuations.

  • The Employers Agent will sign off on all valuations.

  • The Client's exposure is reduced by the amount invested by Fit Out Projects and the Client retains the security of the property and the build works completed.

  • The Client retains the gross profit on property sales, less a payment to Fit Out Projects equivalent to the gross profit % of their investment in the construction costs.

  • Once the property is fully sold, the Client pays the Employers Agent a commission of 10% of the retained profit, for acting as Employers Agent and for managing the project.

Living Room

It's a very simple way of earning between 20-26% on a property development.  If you're interested in talking to us about a Joint Venture Investment, click below to conatct us with your details and we'll get right back to you!

JOINT VENTURE working EXAMPLE

DEVELOPMENT FINANCIALS

Expected GDV

Land & Sales Cost

Build Cost

Profit

Profit %

£4,300,000

£1,632,000

£1,550,000

£1,118,000

26%

  • The Client Investor purchases the property and registers it in their own name.

  • The Client is responsible for the Land and Sales costs of £1,632,000 and Build Costs of £1,550,000

  • The Client signs a JCT Design and Build Contract with Fit Out Projects, acting as Main Contractor for £1,550,000

  • Fit Out Projects invests £500,000 into the project, through construction costs via monthly build valuations.

  • The Employers Agent will sign off on all valuations.

  • The Client's exposure is reduced to £2,682,000 and they have the security of the property and the build works.

  • The expected gross profit on the project is £1,118,000 which equates to 26%

  • The Client retains the 26% Profit, less a payment to Fit Out Projects of £130,000 representing a 26% profit on their £500,000 investment.

  • The Client's retained profit is therefore expected to be £988,000

  • Once the property is fully sold, the Client pays the Employers Agent a commission of 10% of the retained profit, for acting as Employers Agent and for managing the project.

Image by Markus Spiske