The Blueprint Podcast

239 - Developers Margin as Cashflow: £0.3m-£0.4m per project


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In this Deals, Deals, Deals Podcast Series, we go Behind the Scenes on some of the UK's most Creative, Lucrative and Award-Winning Deals 🤩

One of the Property Entrepreneurs main focus is the Wealth Pyramid with the three levels (or layers):

  1. Cashflow

  2. Profit

  3. Assets

A common issue for developers is having the cashflow through to the completion and sale of the development, which can take anything up to three years or more.

Our host, Mark Barrett welcome's back Kevin Edge to the Deals Deals Deals Podcast who featured two years ago in Episode 80.

Kevin has been on the Property Entrepreneur Board for the last nine years which has been a transformative period in terms of the three pillars of Property Entrepreneur: Health, Wealth and Life by Design.

Kevin has gone from working in the business to working on it, from doing large extensions to having just finished three developments totalling £20m.

He has lost 25kg and gone from doing his first half marathon on the first Get Up Give Back campaign to having just received the Abbott Medal after running the big 6 World Marathons. He lives in St Albans in his new build dream house with his partner Anna and dog Sunny.

This episode is one example of how having a complimentary strategy of doing custom client builds for their dream home can utilise all the expertise within the team and contractors and provide £400,000 per project of cashflow during that client build. This provides a truly win/win scenario of the client getting their individual dream home with potentially considerable equity utilising all the developers knowledge, contacts and expertise and the developer gets additional cashflow to sustain their team during their own developments.

Typical numbers:

Purchase of an existing plot: £2m

Design and Build costs: £1.6m - 2m

Gross Development Value: £4.5-£5m

Potential equity £0.5m - £1m

Developers margin as cashflow: £0.3m-£0.4m per project

Want to contact Mark or his guests?

www.thepropertybrokerage.co.uk

[email protected]

Kevin Edge

[email protected]

[email protected]

http://www.themosaicgroup.co.uk

Facebook

https://www.facebook.com/kpauledge

Instagram

https://www.instagram.com/kevinpauledge/

Linkedin

https://www.linkedin.com/in/kevinedgepropertydeveloper/

Want to learn more?

Want to know the ONLY 5 PROBLEMS you need to overcome to become a High Net Worth Property Entrepreneur making 6 and 7 figure annual profits? Click here now to download our FREE PDF report

Daniel Hill's brand new, first-ever published book Karma Credits: The Universal Law of Wealth, Health and Happiness can be purchased on Amazon. Click here now to purchase a copy.

If you've not already joined the 10.9k Property Entrepreneurs for FREE in the Property Entrepreneur Facebook Group, click here to join now: The Property Entrepreneurs Community

If you're listening to this podcast but have not yet subscribed, click the subscribe button to listen to what Daniel and other industry leading guests have to say on a weekly basis on all things business, investment property and lifestyle: The Official Property Entrepreneur Podcast

Keep up to date with Daniel's unique and proven Blueprints by subscribing to The Blueprint YouTube Channel now

Follow Daniel on Social:

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LinkedIn: @propertyentrepreneur

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The Blueprint PodcastBy Daniel Hill

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