Reward! 

The final stage of the whole process and approaching an exit point is a huge milestone in itself. However, how we exit is something that we would have agreed at the very beginning when setting the strategy and business plan for the project.

The exit is how we realise and make our profits.

 

Sell

Most property development lenders and joint venture partners prefer the sell option as it helps them forecast an exit based on recently sold comparable projects to those we are proposing to build.

 

Let & Hold

Sometimes, property prices can go down (not just up) during the development cycle therefore it’s important for every property developer to forecast a worst-case scenario - being able to rent the properties whilst waiting for the market to recover.

 

Refinance

It could be that our strategy is ‘build to rent’, therefore meaning your proposed exit is to refinance the end market values (using a term mortgage) once the construction works have finished.

This strategy is proving more and more popular as the private rented sector continues to grow i.e. more people renting than buying.

 

These strategies are time dependant, and it may well be that a hybrid solution is found. For example, we may seek to Let & Hold while the market recovers and then Sell once the market has recovered to level that would guarantee a suitable profit.