Our Ethical Approach to Funding Development
- PropInvest Co.
- Jul 23
- 3 min read
In a fast-moving industry where "fake it till you make it" has become disturbingly common, integrity is more than just a buzzword, it’s a decision, made daily.
At PropInvest, we’ve built our reputation (and our investor network) not by shouting the loudest or promising the highest returns, but by doing what we said we’d do.
Over and over again.
This is our approach to raising capital, and why we believe ethics and delivery must go hand in hand.
🚫 The Problem with the Industry Today
Let’s address the elephant in the room.
Too many developers:
Raise money before they’ve fully costed a project.
Show inflated returns without any real downside analysis.
Offer vague “profit share” structures with no legal protection.
Use investor funds to plug holes or pivot mid-project.
Disappear when things get tough.
The result? Burned investors, ruined trust, and a bad name for everyone else in the game.
We’ve met investors who’ve been stung before, and it’s exactly why we do things differently.
✅ Our Principles for Ethical Capital Raising
We believe capital raising should be professional, structured, and fair.
Here’s how we hold ourselves accountable:
1. We Only Raise When We’re Ready
We don’t start raising until:
We have heads of terms agreed on the site
Planning strategy is well underway
Build costs are priced by real contractors (not guesswork)
Exit options are clear and viable
We’ve stress-tested multiple scenarios
That means no vague pitches, no "we'll figure it out later" mindset, just real numbers, real data, and a real project plan.
2. We Put Investor Protection First
Before we talk profit, we talk protection.
Every project is set up as a limited company with:
A legal shareholders' agreement
Defined capital input and ownership %
Clear exit strategy and timeline
Legal charge or priority repayment (where appropriate)
Open-book project accounting
This structure gives investors clarity, security, and control. No handshake deals. No fuzzy terms.
3. We Show the Downside, Not Just the Dream
Every pitch deck includes:
Realistic timeline expectations (including planning delays)
Contingency budgets (typically 15-20%)
Risk scenarios and mitigation plans
Examples of where we’ve had to pivot, and how we responded
Because smart investors don’t want hype. They want truth. If we lose credibility now, we lose the opportunity for every future deal.
4. We Communicate — Especially When It’s Hard
It’s easy to send good news. We make sure we send the tough updates, too.
Investors get regular reports (monthly or milestone-based)
We use video walkthroughs, dashboards, and WhatsApp for transparency
If something’s delayed, we explain what happened and what we’re doing
The result? Confidence and clarity... even when the market shifts.
5. We Don’t Over-Promise
We’d rather surprise people with performance than disappoint them with overreach.
That means:
Conservative projections
Clear assumptions in our models
Avoiding “headline returns” without showing the full picture
If the deal doesn’t work on realistic figures, it’s not the right deal, for us or for our partners.
Why This Matters
Over 70% of our development capital comes from repeat investors.
Not because we offer the biggest returns.
But because they trust us to:
Protect their capital
Be honest when things don’t go to plan
Do what we said we’d do
If more developers took that approach, the whole industry would be in a stronger place.
The Bottom Line
We’re not just raising capital. We’re building a long-term ecosystem. One where investors, developers, and end buyers all benefit from trust, integrity, and delivery.
That’s what we mean by ethical capital raising.
Want to work with us on a future deal?
Let’s have a real conversation, about the risks, the returns, and what trust actually looks like.
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