Imagine a world where every borrower has strong financial backing, perfect credit, and a lifetime of experience. In this dream world, every project has a 25% profit margin and zero paperwork issues. While that sounds great to an underwriter, anyone in development finance knows it’s a total fantasy.
In the real world, margins are tight and build costs stay high. Even the best developers have barriers. What matters is their ability to pivot when things get tough. Tick-box credit decisions just don’t work in this industry. We prefer a human view of both the project and the person behind it.
Spreadsheets can’t solve problems
Development is inherently messy. Legal snags, contractor issues, and market shifts are part of almost every deal. A solid appraisal or a set of drawings is a good start, but they don’t stop the unexpected from happening. Once construction starts, challenges show that no spreadsheet can solve. A spreadsheet can forecast risk, but it can’t manage it. Every site has its own quirks. The real difference isn’t whether a problem pops up, but how the developer handles it. This is why we back the person just as much as, if not more than, the deal itself.
We look past the paperwork
Profits on paper are great, but it only happens if the job gets finished. A high Gross Development Value (GDV) looks good on a screen, but numbers don’t manage contractors people do.
When we look at a deal, we look past the appraisal. We care about relevance. We want to see that you understand your specific project and have a calm head for the usual development headaches. Experience isn’t just about how many houses you’ve built, it’s about business sense and a real grasp of technical risk.
Why “Skin in the Game” matters
Being open during due diligence and being honest when things go wrong are the real signs of a good developer. We also look for “skin in the game.” Whether it’s cash or planning uplift, having a personal stake leads to smarter, more strategic decisions.
At Magnet Capital, the deal gets the conversation started, but the developer delivers the result. We aren’t just looking at one loan, we’re looking to support your long-term vision. The best relationships grow over several projects, where we can structure funding to support your real growth.
Ultimately, success in this industry isn’t about one single scheme. It’s about building trust and a solid reputation together
Contact us on 020 8075 3255 or fill in our online form to find out how we could support your first (or next) development finance project.
