Increasing construction and selling costs mean developers and housebuilders are sacrificing their cashflow. We believe there's a better way and it starts with bulk-selling
As a developer, your main goal is to create a building that you can not only take pride in but which also returns a solid profit. However, while the residential property market can deliver lucrative returns, it can often feel like your cash flow is suffering from increasing construction and selling costs.
We think there’s a better option for developers and housebuilders than the traditional method of selling to individual buyers. Developers deserve a better method, one that cuts the red tape and maximises their profits. Straying from the norm may sound kooky but that’s how innovation happens and it’s how you can strengthen your cash flow.
How are residential developments traditionally funded?
Traditionally, most developers looking to build a new residential block must secure the necessary funding before they can start construction. In recent times, arranging finance with the banks is far from an easy process, due to their risk-averseness. It is difficult negotiating an affordable interest rate without any pre-sales.
While this may be the typical way to fund residential buildings, it’s not necessarily the best way to approach it. Also, selling to individual buyers can make the whole process more complicated. Even worse, this method eats into your bottom line, due to the time it can take as well as all the sales and marketing costs.
How can the process be improved?
It’s no secret that bigger deposits give access to better interest rates and repayment terms, so our Kooky approach doesn’t just make you an offer for the whole development, it can also exchange contracts within a month and provide a large deposit on exchange.
With a guaranteed sale price and knowing that all units are pre-sold, developers will find themselves gaining easier access to better lending terms. As a result, you’ll find your development can provide a greater return on investment.
What if the development is already built?
If the residential building is already completed, then every second it remains unsold is money lost. To maximise profits, completed units need to be disposed of as quickly as possible and at Kooky, we can purchase them quickly. Our entire purchase and legal process have been built around speed and efficiency, enabling you to move onto your next project quickly.
We also help you strengthen your cash flow by purchasing every unit. This means there’s no need to invest money, time and effort into sales and marketing as once we exchange, there won’t be anything left to sell. We don’t just save you money, we also save time with our proactive legal process and minimise any external legal costs.
At Kooky, we’ve developed a new way to purchase your development which removes the risk from your sales process. So, if you have an under construction or built development of between 30 to 150 units, then we’re interested in buying.
A quick and simple legal process may sound too good to be true, but it’s just a kooky idea from us. To find out more, speak to Nicholas Belkin, our Head of Acquisitions, on 0207 907 5555 today.