About Matthew Cullum

Economy – Matthew Cullum

The whole of the UK were in turmoil of how leaving the EU would affect income levels as well as the trade market. There was a period of real uncertainty and fear throughout the UK among big and small businesses. London being the financial hub of the world was looking certain to be hit hard, however the fallout was less severe than first expected. The south east of England including Folkestone have now become settled since there has been real clarity regarding the date to finally leave the union.

Developers and experts alike were seriously concerned when the decision was made to leave the EU, however as time as progressed and the economy has settled confidence is now growing with not just property developers but throughout ever sector in the UK.

Building properties can be an exciting venture for any developer or private investor alike, given that is it carefully planned out with precision in terms of the designs, costings and staff management.

A careful well planned out approach with all factors being taken into account is the only way to guarantee you will build the home of your dreams, or the dream home for somebody else if you wish to sell. Matthew Cullum’s blog says many mistakes can be made when building property, this can be due to a careless and slack approach. If your ultimate plan is to sell the constructed properties on to buyers, there are certain things you need to make sure of. Matthew Cullum’s blog states that homes of unusual construction often put potential buyers off, for example timber framed properties are among one of the biggest features that deter buyers. Things like high rise flats are also one of the biggest factors to repel potential buyers, these are the issues that need to be looked at before any concrete decision is made to start building. When a developer or investor makes the decision to begin a project, usually many team members will come together to give their input. You will usually find a finance manager to ensure things remain within budget and costings don’t go above and beyond the planned amount.

You may also find a land acquisition manager to source the plots of land in the most affluent areas they can find.

Matthew Cullum blog also writes that developers will often have relationships with contractors over many years, resulting in a trusting rapport to ensure the work is done within the designated time frame as well as being within the budgeted costings. Property development can certainly be a stressful project, especially is not property planned with each and every avenue taken into a account, however when done correctly, the rewards can be huge. If constructed to a good standard and sold at a profit, this will give developers and private investors momentum too continue doing multiple projects as time goes on.

Quote #1

“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Franklin D. Roosevelt

Quote #2

“Owning a home is a keystone of wealth…both financial affluence and emotional security.”

Suze Orman

Quote #3

“Landlords grow rich in their sleep.”

John Stuart Mill


Financing Property Development Through Joint Venture

You just found the right property development project. You have the skills and the commitment to bring this project to life, but there’s only one thing that’s holding you back, finances. Now, before you give up on that project, there’s another option.

A Joint venture allows you to partner with a financier. With the right skills, experience, and knowledge, you can get financing and work on the project.

So, what are financing options in a property joint venture? Matthew Cullum provides more information here.


The most viable option that a property developer can settle for is seeking a partnership with an investor. The investor can be people within your network or otherwise. In this set-up, the investor contributes money while the property developer brings skills, knowledge, and expertise to the project.

The two or more parties involved can opt for a limited company, a partnership, or a contract development agreement. Whichever the contract, the parties must be clear on roles and responsibilities. Matthew Cullum property has extensive articles on the subject of legal JV contracts.

Another crucial factor is the finance structure. Often partners will opt to buy, renovate, and sell a house rather than renting out. Thus, depending on what each party brought to the table, the partners can opt for a 50:50 share once the property is sold. If one partner was solely responsible for the finances, then the 50:50 split will most likely happen after they have gotten their investment back.

Auction Financing

Buying property at an auction usually requires that the buyer settle the bid fast. In this case, the property developer has a prior arrangement with a financier or financial institution to process the money in the shortest time possible after they’ve settled for the right property.

Bridging Finance

Bridging is a short-term payment plan for projects with a low budget. This fund is time-bound, and one will get it quickly.  If a property developer wants to refurbish a shop before selling it and he/she doesn’t have the money, they can apply for this kind of loan.

Commercial Mortgages

This kind of financing is for commercial properties. The financial arrangement is straightforward since it’s a mortgage. Say you’ve rented a pub, but there is an option of buying it. So, you can choose the mortgage payment option. In the long run, you’ll own the place and can customize it to your preference.

Factors to Consider When Applying for Financing

Whether you are looking for investors or choosing auction financing, several factors will determine whether you get the financing. Here is a list of three things that you must get right to enter a joint venture.

Your Skillset

The question here is what are you bringing to the table? A property developer needs to have a track record of previous projects. This way, the potential investor can confirm that the developer has done such projects before, and the chances of their investment going down the drain are minimal.

Property Profit

Everyone bases their investment decision on the profit they stand to get from the investment. Therefore, you must articulate the project implementation process and how the investor will profit from the project.

Gross Development Value (GDV)

Gross Development Value is the projected value of a property once it’s complete. The value determines whether or not the project will be approved for funding. Ideally, a worth investment can get up to 65% of the GDV. Register to the Matthew Cullum property blog to find out more.

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