Investing in JV Developments
New Investment Opportunities
At Source our policy has always been to help investors find the best quality property investments with a primary focus on income producing investments. We continuously research the market and during our due diligence view several dozen developments and work with some of the best developers. By building and maintaining contacts with these developers/vendors we can offer our clients the best property investment opportunities across the UK.
These relationships have now opened new areas of investment opportunity for our investors in property development projects, giving Source new tools to deliver the right property investment plan for each individual investor.
Primarily our focus is on delivering the following;
– Buy to let investments nationwide aimed at a balanced return of capital growth and rental return, starting capital required £30k.
– HMO development projects in the south east aimed at building equity through refurbishment and then producing strong rental incomes, starting capital required £130k.
– Joint Venture (“JV”) Development opportunities in the south east partnering with experienced developers on a 50/50 profit split aimed at achieving between 20-40% annual returns, investment capital required £350k – £3m.
Working a de-risked model
Investing in JV development projects carries significantly more risk but also significantly more potential for upside. We work with development partners that de-risk these investment opportunities by working in several contingency across build cost, timeframes and projected end values. They are also experienced with strong track records in their respected areas.
A typical example for JV development opportunity structure;
– Investor acquires the site/property (£1m)
– Developer finances the build and delivers project (£1.5m)
– Profits are split 50/50 (£500k)
– Investors can be as hands on or off as they wish
The Right Investments For You
We stress that some investments will not appeal, or be appropriate, to all investors. The main factors when looking at investing in property are;
– The amount of Capital you have to invest
– Your tax position
– Appetite to risk
– Long term financial plans
– How much time you have to focus on property investment
If you are thinking of investing get in touch with Tom or Chris to work out what the right property investment is for you. Contact them at https://sourceinvestments.com/contact/