How We De-Risk Every Deal

PropInvest Co.
Jun 9
3 min read

→ Inside Our Due Diligence Process

In property development, trust is earned one deal at a time. At PropInvest, most of our investors come back again and again. Not because every project is perfect, but because we make risk management a core part of everything we do.

That’s not just a line. It’s baked into our process. Before any site gets a green light, it has to go through a detailed and disciplined due diligence framework.

Here’s how we de-risk deals before a single brick is laid.

1. Start with the End in Mind

Before we dive into legals or floor plans, we ask one key question: Who’s the end user, and what do they actually want?

It sounds simple, but most developers skip this. They get excited by site potential and forget to sense-check demand. We study the local market to understand resale or rental appetite, buyer trends, price points, and absorption rates. There’s no point planning the perfect scheme if it sits on the market for months with no traction.

We run comparables, study planning portals, check recent sold prices, and speak to agents to get a clear, current picture. This gives us a feel for exit viability from the very beginning.

2. Run the Numbers—Then Stress-Test Them

Once we understand potential demand, we run full financials. That includes:

Build cost analysis
Professional fees
Stamp duty, finance, and contingency
Planning uplift where applicable
Realistic end values (not agent hype)
Timelines and holding costs

But we don’t stop at a single spreadsheet.

We pressure-test the figures across multiple scenarios—cost overruns, slower sales, interest rate increases, and delays. We ask: What happens if things don’t go to plan? Do the numbers still work?

If the margin drops below our minimum threshold when tested, it’s a no from us.

3. Legal & Planning Deep Dive

This is where deals can unravel quickly. We involve our legal and planning advisors early to:

Identify title issues or covenants
Check boundaries and access rights
Review planning history and potential complications
Confirm permitted development eligibility (where applicable)

We’ve seen great-looking deals fall apart at this stage because someone skipped a title check or misread a restrictive covenant. We take our time here, because rushing this part is one of the fastest ways to lose money—or a relationship.

4. On-Site Surveys and Condition Reports

No matter how good something looks on paper, we don’t fully commit until we’ve physically walked the site. Our team inspects the structure, checks drainage and services, and looks at anything that might affect costs or timeline.

For more complex builds—like barns or heritage assets—we often commission further structural or ecological surveys early. It’s an upfront cost that saves a lot of pain later.

5. Reliable Build Costs from Real Contractors

One of the biggest risks in development is underestimating the build cost. We don’t just guess or Google it. We work with our repeat contractor network to price schemes based on real-world delivery, not theory.

That gives us greater control over cost certainty—and it means our investors get budgets that are grounded in current market conditions, not wishful thinking.

6. Security and Structure for Investors

Before bringing investors into any deal, we’ve already de-risked the numbers, site, and exit. Then, we make sure they’re protected in how the deal is structured.

Depending on the agreement, this might involve:

First-charge security
Clear shareholder agreements
Fixed returns or equity splits
Waterfall models
Transparent payment timelines

We tailor the structure to suit the investor profile—but we never compromise on clarity. Everyone involved knows exactly how, when, and under what terms returns are made.

7. Ongoing Monitoring and Communication

Risk isn’t a one-time check. Once we’re live on a site, we keep investors updated with regular reporting, site progress photos, and honest updates. If something changes, we explain why, what it means, and how we’re responding.

That’s how we’ve built a reputation for transparency and professionalism. Problems happen in development—but silence kills trust. We stay proactive.

Our approach to due diligence isn’t about being risk-averse. It’s about being risk-aware.

Every deal has risk. But when you build a system that looks for red flags early, stress-tests assumptions, and gives investors real visibility, you create something that scales.

We don’t just de-risk deals for our benefit. We do it because the strongest partnerships are built on trust—and trust grows when your process is as solid as your pipeline.