Don't chase the numbers........ We see a lot of investors turning to property development, some have considerable portfolios and see it as natural progression. Others are just starting out and see development as the quickest way to either build a portfolio or create large lumps of cash. What is common across all those new to development is the hunger & desire to get going.....consequently we see many 'motivated buyers'. For some 'deals' are announced on social media....offers accepted...heads of terms agreed.... In 2024 almost 30% of commercial deals didn’t complete and according to some agents that's on the rise. Reasons are generally either due to poor numbers leading to no funding or enthusiastic 'buyers' discovering issues through the conveyance process that can and should be picked up during appraisal. We have seen numerous 'deals' over the last few years that are not even possible due to access issues, a red flag in our initial appraisal process. Don't be an enthusiastic amateur and 'chase the numbers'. Make sure you get solid advice and guidance from those that have been through a similar type and size of project. Property Development is a “get rich slowly” strategy which for many can be a “get poor quickly” strategy. It is not for everyone and despite claims by some trainers that “anyone can do it” amd “you don’t need any money” decades of experience have taught us that “few can or should do it” and you absolutely need money and generally a lot of it. Using other people’s money, which many of us do should not be for those new to development

Posted by Richard Little at 2025-05-20 08:59:54 UTC