Know what to look for, what to ask and what a trustworthy developer should be offering you before you even have to ask.
Due diligence is not a sign of distrust it is the most important step you can take before placing your capital. A credible developer will welcome every one of these questions.
Scope of works, timeline, planning status and acquisition strategy all in writing.
Purchase price, costs, contingency, projected return best, realistic and worst case.
Track record, references, completed project evidence from real investors you can speak to.
How your capital is held, secured and protected with independent legal advice encouraged.
How and when you receive your return and what happens if plans need to change.
Regular updates, named contacts and proactive transparency throughout the project.
Ask your developer to provide a clear, written picture of the project acquisition strategy, scope of works, timeline and planned exit. Verbal reassurances are not enough.
Ask specifically whether planning permission is required and, if so, whether it has been granted. Planning delays are one of the most common and most avoidable causes of overruns.
What a good developer volunteers: A written project summary covering acquisition price, development costs, projected return, timeline and exit before you ask.
What to ask about
Acquisition strategy why was this property selected?
Scope of works what is being done and by whom?
Planning status required, and has it been granted?
Timeline start, completion and exit dates
Ask your developer to walk you through the full financial model not just the headline return. What are the costs, contingencies and holding charges? What does the return look like if things cost more or take longer?
A developer who can only present a best-case scenario is either unprepared or not being straight with you.
What a good developer volunteers: Full cost breakdown with 15–20% contingency included, plus best, realistic and worst-case return projections.
RETURN SCENARIOS
The developer's track record matters more than any individual property. Ask to see completed project evidence photographs, timelines, actual versus projected costs and speak to references directly.
A developer worth investing with will provide all of this without hesitation.
What a good developer volunteers: A completed project portfolio, background summary and investor references available to speak to directly.
VET THE DEVELOPER
Track Record
Refs & Reviews
Project Photos
Cost History
How is your money held? Is it secured against the property? What happens if milestones are missed? These questions must be answered in a written legal agreement not verbally.
Always seek independent legal advice before signing. A reputable developer actively encourages this. Pressure to commit quickly is a significant warning sign.
What a good developer volunteers: A solicitor-drafted agreement, clear explanation of how your capital is secured, and encouragement to take independent legal advice.
Legal points to clarify
How and where is your capital held?
Is your investment secured and against what?
What are the repayment terms and schedule?
What recourse do you have if milestones are missed?
Before investing, ask your developer to explain exactly how and when you will receive your return. Sale, refinance or rental yield each has different timescales and risks. Your timeline and theirs must be aligned.
Key question to ask: "If you needed to exit earlier than planned, what would that mean for my return?" A well-prepared developer will have a clear answer.
YOUR INVESTMENT TIMELINE
EXIT ROUTES
Due diligence continues after you invest. A good developer keeps you informed with regular updates, progress photographs and honest communication when issues arise. You should never have to chase.
Ask the developer to describe their communication process before you commit. If they cannot answer this clearly, that tells you something important.
What a good developer volunteers: Update frequency, format and a named director not support staff as your point of contact throughout.
Communication to expect
Regular written updates not just when asked
Photographs at each key milestone
Honest, prompt communication when issues arise
A named director as your dedicated contact
A trustworthy developer offers all of the following without being asked. Use this before you commit to any investment.
Acquisition price, scope, timeline and exit route all in writing.
Costs, contingency, and best, realistic and worst-case return scenarios.
Photographs and actual versus projected costs from previous deals.
Real people you can speak to directly not just names on a list.
Solicitor-drafted, with encouragement to seek your own independent advice.
Update frequency, format and a named director as your point of contact.
Whether permission is required and confirmation it has been granted.
Including contingency plans if the project needs to exit earlier than planned.
Practical, honest guidance for property investors delivered free to your inbox by Aidan & Avril Magee at Busk Properties.