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In plain terms. You put capital into a small residential development and we run the project, from site selection through to completion. At the end your capital comes back to you with a share of the profit the build created, rather than you keeping a property. The position is usually a preference share in the project, not a loan.

Why it matters. Waiting for the market to lift your equity is slow, and lately it has been slower than most people planned for. A development profit does not depend on the cycle. It is created by building the right home in the right place, and it is either there in the feasibility on day one or it is not.

What it means for you

• The profit is designed into the numbers before anything is built, not hoped for afterwards
• Projects are structured to target a preferred return of 20% of your capital, paid ahead of the developers' share
• No bank debt in your name, no site to run, no builder to chase
• A defined project timeline rather than an open-ended hold
• The directors carry the debt and co-invest in every deal, so our money sits beside yours

It is not a loan and not a fixed return. The preferred return is paid from project profits, so if there is no profit you may receive only your capital back, and a project that goes badly can return less. Capital is at risk and is illiquid for the life of the project.

In plain terms. Instead of taking a cash return at the end, you keep the finished home. You acquire it at what it cost to create, land plus build plus the costs of delivery, rather than the retail price a buyer off the plan would pay.

Why it matters. A retail new-build price has the developer's margin, the marketing and the selling costs baked into it. That is why the yield on a brand new home so often looks thin. Strip those out and you are paying for the house, not the sales process.

What it means for you

• The developer margin stays with you as equity from day one, instead of going to someone else
• Yield is rent divided by what you paid. Same rent, lower price, stronger yield
• Brand new, so depreciation works in your favour at tax time
• You keep the asset and the rent rather than exiting at completion
• Same project, same build, different entry price

Whether a specific home is positive cashflow depends on the rent, the rates and your circumstances. General information, not tax advice.