25-home development with 200% ROI
150k – 450k
Yes. Many people are surprised when we say we offer up to 200% ROI on some of our property investment opportunities, especially as many property investments will offer you a return of around 15% – which is nothing compared to the amount of profit gained on developments using your investments.
So how and why do we do it?
Firstly, we use banks to finance most of the construction costs of our projects, however we still need to finance the cost of the deposit.
The investment opportunities we are offering cover this cost.
The alternative would be to take 100% development finance from banks or other lenders as JV partners.
However if we did this the lender would demand 50% of the total profits and have control over the project.
Instead we prefer to take out the finance with the bank and to raise the deposit we work with private investors – and treat them well.
The return on their investment we offer (up to 200%) is a lot more than many other developers give private investors but it is also a lot less than us giving 50% of the total profits to a JV partner.
We find this works for all parties involved.
Yes. This is a completely hands-off investment. You don’t need to do anything. We have done all the leg work and the project is at a stage where we are ready to start developing the site.
As an investor you become a shareholder in the a Special Purpose Vehicle limited company set up for the development. Your investment is used to purchase the land with the remainder of the development financed via institutional funding.
After the investment term is complete you are paid your agreed return as the second charge, with first payment to the main lender and the developer third.
You would get your full investment back from our secure solicitors account. The funds are used for acquiring the site and are only released with your permission. In the unlikely event that the project didn’t complete because of a problem with the developers, then we find another developer to complete the project.
Our main lenders carry out full due diligence and ensure our cost plans have plenty of contingency built in before they would even offer a loan. In the unlikely event that the project did run out of funds due to unforeseen circumstances, the lender would provide additional funds to ensure it is completed. The worst case scenario is that we sell the development to a new developer and return your funds.
If the profits are less than we projected, the investor would still get their full ROI as agreed. First payment is to the main lender (usually a bank) and our private investors are second charge. Our private investors are paid before the developers, who will earn less if the profits fall short of expectations.
Losing money is highly unlikely as we will always have the asset your investment was used to purchase and as a shareholder you have a legal right to your share of it. The worst case scenario is that the asset is sold and your investment returned.
This project is being carried out by developer Cullion Group. The company has delivered more than £25million worth of successful developments across the UK over the last seven years.
Cullion has offices in Sheffield and Liverpool and has delivered a range of projects from converting disused offices into residential apartments to creating new builds in key suburban areas.
You can download our detailed investors Spotlight pack by filling in the form below. This pack includes more detail about the project including financial figures as well as plans. Also feel free to drop us a line or an email using the details below.
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