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  • 41: Navigating Fees, Finance, and Residual Land Value

    41: Navigating Fees, Finance, and Residual Land Value
    2026/03/02
    In this episode, Jonathan and Kieron dive deep into the analytical engine of property development: deal appraisal and financial modeling. Moving beyond the excitement of finding a site, the duo breaks down the core components of a professional appraisal, from Gross Development Value (GDV) and build costs to finance fees and section 106 agreements. KEY TAKEAWAYS The fundamental goal of an appraisal is to work backward from the GDV, subtracting all costs (build, finance, professional fees, and profit) to determine the maximum price you can pay for the land. While lenders often look at ‘profit on cost’, developers should also aim for a ‘profit on GDV’ between 23% and 25% (typically equating to 30% on cost) to ensure a healthy buffer. Always model worst-case scenarios, such as build costs rising by 10% or GDV dropping by 5%, to see if the project remains viable under pressure. An industry-standard 10% contingency is non-negotiable for most lenders and serves as a vital safety net for unforeseen "abnormals" like moving underground drains or trees. Presenting a professional "offer pack" with detailed numbers to an agent or vendor builds credibility and justifies why your offer might be lower than the asking price. BEST MOMENTS "Property development is a numbers game. This clarity gives you more confidence when you go and make those offers because you come across more credible." "A spreadsheet is only as good as the data that goes in it. It can't magic answers for you; if you put in bad data, you're going to get bad results." "Don't get too emotional, this is a business. Keep it simple, stupid." "I'd rather make an offer that works for you than try to just buy the work." "The first time you get in a car, you're like, 'How do I do everything?' The more you do [appraisals], the quicker it becomes just like driving." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    25 分
  • 40: Securing Development Funding in 2026: Direct to Lender vs. Using a Broker

    40: Securing Development Funding in 2026: Direct to Lender vs. Using a Broker
    2026/02/23
    In this episode, Jonathan and Kieron break down the complexities of securing property development finance in 2026. The duo explores the ‘capital stack’, explaining the roles of equity, senior debt, and mezzanine finance, while comparing the pros and cons of working with brokers versus going directly to lenders. They share their understanding of the various fees involved, from arrangement and exit fees to monitoring surveyors, and learn exactly what lenders are looking for, including credible exit strategies and developer track records. KEY TAKEAWAYS Development funding typically consists of developer equity, senior debt (usually 65-70% of Gross Development Value), and potentially ‘stretch senior’ or mezzanine finance to bridge gaps. Brokers offer access to a wider market and handle ‘packaging’ the deal, while going direct can save on fees and help build long-term institutional relationships. Developers must account for a wide array of costs beyond interest, including arrangement fees, exit fees, commitment fees, legal fees for both parties, and valuation fees. Lenders care most about a credible Plan A exit strategy, the developer’s experience/team, and having ‘skin in the game’ through equity or planning uplift. Over-communicating with lenders and being realistic about build costs and timelines (including a 10% contingency) is vital to preventing defaults and high-interest penalties. BEST MOMENTS "Securing funding is one of the biggest bottlenecks in property development. It’s not just a loan; it’s structured risk." "For a newbie, it can be quite daunting, especially when you're borrowing hundreds of thousands or millions for a project, not just a home." "Lenders aren't just funding the project; they're funding the risk profile of the developer." "You’re looking for this person [a broker] to be almost just outside of your team but still part of it." "Every development project is a business, and like every business, you need a plan, and you need to know how you plan to repay." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    36 分
  • 39: How to Find Sites in 2026: Old Fundamentals, New Tech

    39: How to Find Sites in 2026: Old Fundamentals, New Tech
    2026/02/16
    In this episode, Kieron and Jonathan discuss the evolving landscape of site finding in 2026. While the core principles of development remain steady, the tools and technologies available to developers have shifted significantly. The duo explores traditional methods like direct vendor letters and building relationships with agents, while highlighting how new software and AI integration are streamlining the research process. KEY TAKEAWAYS Traditional methods like direct-to-vendor letters and building strong relationships with both residential and commercial agents remain effective, though they now require a more targeted approach. Modern software (like Nimbus Maps or Searchland) and AI tools are excellent for quickly rejecting bad deals, but they don't replace the need for human judgment and ‘gut feel’. Landowners are more informed about planning potential in 2026, which can lead to higher price expectations and the need for more complex structures like joint ventures. Site finding is a continuous business process, not a one-off task. Maintaining a pipeline of potential deals is crucial for better negotiation leverage. Developers should focus on controlling land through options or conditional contracts rather than outright ownership to minimise financial and planning risk. BET MOMENTS "The fundamentals haven't changed, but the speed and tools have." "The tools don't find the deals; they remove bad ones faster." "Consistency beats cleverness." "Site finding is a pipeline; it's not a one-off task." "Developers don't just find sites, they create them." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    30 分
  • 38: 5 Myths and Misconceptions of Property Development

    38: 5 Myths and Misconceptions of Property Development
    2026/02/09
    In this episode, Jonathan Stobbs and Kieron Shepherd delve into the five core myths surrounding property development that often deter aspiring developers. Jonaathan & Kieron discuss misconceptions such as the need for substantial personal funds, the perceived safety of small developments compared to larger ones, and the belief that experience is a prerequisite for success in the field. KEY TAKEAWAYS Myth of Money Requirement: It's a common misconception that you need a lot of your own money to start in property development. In reality, you can leverage other people's money (OPM) through investors, family, or friends, and you only need a small amount of your own funds for initial costs like legal fees. Risk in Development Size: Smaller developments are often perceived as safer than larger ones, but risk is more about margins and complexity rather than size. Experience is Not Mandatory: Many believe that you need extensive experience to be a successful developer. However, surrounding yourself with a knowledgeable team can compensate for your lack of experience. Development is More Than Building: Property development encompasses various stages beyond just construction. Developers can add value through land sourcing, planning, and even selling sites before construction, allowing for multiple exit strategies. Investor Relationships Matter: While returns are important to investors, building trust and maintaining strong relationships is crucial for long-term success. BEST MOMENTS "Most of what people believe comes from social media headlines or speaking to people down at the pub who have no clue." "You do need a bit of money, but it doesn't have to be your money. It's OPM, other people's money." "Risk isn't about the size; I think it's all about the margins and complexity and buffers." "You don't have to build five houses out to build another five houses out to build another ten." "Returns attract investors. Trust keeps them." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    43 分
  • 37: Which Contract is Right for Your Development: JCT Contracts and The Alternatives

    37: Which Contract is Right for Your Development: JCT Contracts and The Alternatives
    2026/02/02
    In this episode, Jonathan and Kieron dive deep into the world of construction contracts, focusing on the industry-standard JCT (Joint Contracts Tribunal) and the more collaborative NEC (New Engineering Contract). They discuss why having a legal framework is essential for managing risk, cost, and timelines in property development, and also share highlight the importance of thorough administrative processes and clear scopes of work to avoid disputes. KEY TAKEAWAYS The JCT is the most common standard form of contract in UK construction, widely recognized by contractors, lenders, and solicitors for its clear structure. You cannot simply reuse a JCT contract; each document has a unique ISBN and must be purchased and filled out specifically for each new project to be legally valid. Under a D&B contract, the contractor takes responsibility for the design team, which can relieve pressure on the developer regarding aesthetic and technical decisions. A contractor should never perform work outside the original scope without a formal, documented instruction from the contract administrator, as verbal agreements can lead to unpaid disputes. While JCT is standard, the NEC contract offers a more collaborative approach and can allow for more flexible payment terms, such as deposits or down payments. BEST MOMENTS "Effective what you're agreeing is what happens in worst case scenario. Who will effectively be deciding the tribunal element of who's in the right in terms of how you move forward." "Don't try to trip each other up. You're working as a team. It’s not about finding loopholes." "Contracts allocate risk; they don't remove it. They just try to mitigate the risk as much as possible for both parties." "Poor administration causes more issues than poor wording. It needs to be administered correctly." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    39 分
  • 36: Why Traditional Tendering is Broken: Disrupting Contractor Procurement

    36: Why Traditional Tendering is Broken: Disrupting Contractor Procurement
    2026/01/26
    Today, Jonathan and Kieron challenge the industry standard of traditional tendering. Speaking from both developer and main contractor perspectives, they dissect the inefficiencies, hidden costs, and frustrations of the ‘cheapest wins’ mentality. Jonathan and Kieron propose a more collaborative, transparent approach that prioritises realistic budgeting, early engagement, and building long-term partnerships over competitive tension. KEY TAKEAWAYS Traditional tendering often rewards unrealistically low bids that lead to cost overruns later. The lowest initial price rarely equals the best final value. Sharing your actual budget and proof of funds early builds trust and saves everyone time. Treat contractors as partners, not adversaries. Don’t just look at the price on a spreadsheet. Interview potential contractors (via Zoom or in person) to gauge compatibility, experience, and honesty. To get accurate apples-to-apples comparisons, provide a bill of quantities rather than just raw drawings. This ensures everyone is pricing the same scope of work. Involve main contractors and quantity surveyors during the design phase. Their input on buildability and material costs can prevent expensive redesigns later. BEST MOMENTS "The lowest initial price rarely equals the best final value." "Treat contractors with respect and intelligence. If you start that conversation of allowing that contractor to ask those really important questions, we want the business." "You don't win at construction by buying the cheapest. You win by buying certainty." "Cheap isn't what you want. That level of cheap is you just asking for problems. We know our product." "It's about building long-term partnerships. If you do something well with a developer or customer or main contractor, you're going to use them again." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.instagram.com/jonathan.stobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.instagram.com/kieron__shepherd/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    48 分
  • 35: Why You Don’t Always Need to Build

    35: Why You Don’t Always Need to Build
    2026/01/19
    In this episode, Jonathan and Kieron debunk the common myth that being a property developer requires you to actually build houses. They break down the full development lifecycle, from sourcing land to securing planning permission, and explain why ‘building’ is actually just one of several potential exit strategies. The duo discuss the benefits of exiting early, such as selling sites with planning permission to reduce risk, and why the old ‘rule of thirds’ for calculating profit no longer applies in today’s market. KEY TAKEAWAYS Construction is often the last stage of development, and you do not have to undertake it to be successful; many developers specialise solely in sourcing land and achieving ‘planning gain’ before selling the site. While building out a site typically offers the highest profit margin, it also carries the most risk regarding construction costs and market changes. Selling a site with planning permission is a ‘shorter game’ that allows you to realise profit sooner with less exposure. The old rule of thumb (33% land cost, 33% build cost, 33% profit) is outdated. A more realistic breakdown today is often 20% purchase price, 50% build costs, 20% profit, and 10% finance/anomalies. When working with investors, treat the planning approval stage as a checkpoint. This gives everyone the option to decide whether to sell the site and take the profit now or proceed to the construction phase. Successful development requires the ability to pivot. You might intend to build, but personal circumstances or market conditions might make selling the site (‘flipping’) a smarter financial move at the time. BEST MOMENTS "In reality, building is often the last stage in property development. There are multiple exits before you actually get to start building." "Some people just specialise as property developers in planning gain. They find a piece of land, sort out the planning, and then sell it on to another developer." "Building is ultimately just one method of extracting the value from the site." "A bird in the hand is better than two in the bush. Cash in the hand is better than cash in the land." "People used to do the whole 'third, third, third'. We don't do that anymore. It's probably a bottom line 20% conservative on your profit." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    27 分
  • 34: Alter Architects - Designing for Developers. Architecture That Builds The Purpose of Place

    34: Alter Architects - Designing for Developers. Architecture That Builds The Purpose of Place
    2026/01/12
    Today, Jonathan and Kieron welcome Grant Shepherd from Alter Architects. Grant shares his journey from landscape designer to architect, detailing his experiences working with various property developers and the importance of collaboration in the industry. They discuss the nuances of architectural design, the significance of effective communication between architects and developers, and the challenges of balancing creativity with budget constraints. KEY TAKEAWAYS Successful property development relies on effective collaboration between architects and developers. Understanding each other's perspectives and terminologies can lead to better project outcomes. Decisions made in the early stages of a project significantly impact the final build cost and overall success. It's essential to assemble the right team and establish clear communication from the outset. Creating spaces that foster community engagement and cater to the needs of residents, especially youth, is vital. Good architecture should not only focus on aesthetics but also on enhancing the quality of life for users. Familiarity with local and national planning policies is critical for architects. This knowledge helps navigate the complexities of securing planning approvals and ensures that projects align with regulatory requirements. Efficient layouts and thoughtful design can add value to a project. Architects should focus on maximising space and functionality while being mindful of budget constraints, ensuring that designs are both practical and appealing. BEST MOMENTS "For us, that was second nature. We grew up with a father who was very creative and he was a landscape gardener." "I think the key thing is that what we come across a lot is that developers don't want to do measured surveys." "I think the critical thing is that those buildings are good returns." "You are the maker of dreams. You are turning their ideas and wishes and wants into reality." VALUABLE RESOURCES https://alterarchitects.co.uk/ https://www.linkedin.com/in/grant-shepherd-arb-maarch-5a79a889/ HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/ Book your seat now on our 3 day live event Property Developers Bootcamp https://www.propertydevelopersiq.co.uk/pdblive
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    56 分