We recently had the pleasure of speaking with Josh Thompson from CrowdProperty, a keynote speaker at our upcoming Property Developer Show in Bristol on 30th April. Josh shared his insights into property development finance, the challenges developers face, and the exciting opportunities in the market.
Josh is a Senior Lending Manager at CrowdProperty, where he has worked for 4 years. Prior to this, he worked in a variety of roles within the land and property sector over the past 11 years including planning, strategic land, and development agency.
What’s the biggest challenge property developers face when securing finance?
For Josh, the biggest challenge property developers face is the importance of experience and having the right team. He explained:
“Development lending is very different from bridging finance. It’s crucial that the lender the developer works with knows what they’re doing. Going with a lender with the right experience who can guide them through the process and highlight crucial documents that might not be needed for bridging is key. Working with a team is crucial, and the challenge can sometimes be working with a lender who doesn’t know the ins and outs of development.”
What’s the most exciting or interesting project you’ve funded?
Josh shared a particularly memorable project he was involved in, the development of a family farm that had been in the family for generations. The owners wanted to repurpose the buildings into five houses. Josh’s team supported first-time developers through their journey, guiding them from planning permission to title splitting, ensuring they could still live on the site but with a few more neighbours. He remarked:
“It was exciting to completely change the whole set-up of the property and ensure they could still live there. Working with people who didn’t initially know what they were doing but who certainly learned a lot by the end of it was incredibly rewarding.”
What’s the most common mistake developers make when securing finance?
According to Josh, a common mistake developers make is focusing on the wrong thing – speed of completion. He said:
“When people come to us, they want to know how long it will take to complete, but that’s not necessarily the right way to go about it. It’s about having the right team around you to achieve the goal. Some developers will go to a solicitor who they’ve used before for a regular family house purchase, but they don’t have the experience to handle bigger developments. All that does is cause delays and additional costs.”
For someone new to property development, what’s your best piece of advice?
Josh’s advice for newcomers to the industry was clear:
“Do your homework. Look at all the elements of the project, not just how much it will cost you. Consider the team you’re working with, your exit strategy, and all potential scenarios. What happens if there’s a slight change in market demand? Do you have a backup for your exit? The build can be complex, but the real difficulty lies in exiting it. Keep your options open, and work with a team who is experienced.”
Where do you see the biggest opportunities for property developers in the market?
Looking forward, Josh sees huge opportunities for property developers, especially given the government’s ambitious housing targets:
“The government has big aims to build more and more. While there are complexities within the planning system, there are definitely opportunities out there and deals to be done. Now is the time to get into development and find the right sites.”
Josh’s expertise and experience in property development finance are invaluable for any developer looking to succeed in today’s market. Don’t miss the chance to hear from him in person at the Property Developer Show in Bristol on 30th April.
0 Comments