Today, Jonathan and Kieron take a look at one of the most critical challenges in property development: securing the right finance and funding. They share real-life experiences, including Kieron's recent encounter with unexpected construction on his commercial site, highlighting the importance of proper planning and communication. They cover the complexities of financing, including the pitfalls of hidden fees, the significance of building strong relationships with brokers and investors, and the necessity of having a diverse funding strategy. KEY TAKEAWAYS It's crucial to start discussions with brokers and lenders early in the development process. This allows for better planning and understanding of financing options, rather than scrambling for funds when a deal arises. Developers should be aware of hidden fees associated with financing, such as arrangement fees, exit fees, and interest on undrawn funds. These can significantly impact the overall cost of financing and should be factored into budgeting. Establishing strong relationships with investors and lenders is essential. Networking and maintaining communication can lead to better opportunities and support when seeking funding for future projects. Relying on a single source of finance can be risky. Developers should explore multiple funding options, including bridging loans, development finance, and equity partners, to ensure they have backup plans in case one source falls through. When selecting valuers and monitoring surveyors, opting for local professionals can lead to more accurate valuations and lower costs. Local experts are more familiar with the market and can provide insights that national firms may overlook. BEST MOMENTS "Finance is always one of the most common hurdles that developers face. Even the best sites with the strongest GDVs don't always work unless you've got the right funding in place." "It's just slapdash. It's really crap. We wouldn't get away with it in construction under HSE, but when you're a big phone company, they just bulldoze through." "You need to be doing both all at the same time. Send it to a broker, get their thoughts on it and see what kind of indicative terms you can get on day one." "You need to have like a pot of cash that you can work through to get to the results of getting the finance, the decision in principle." HOST BIOS Jonathan is a property developer and entrepreneur with a background in finance and construction. Originally from South Africa, he holds degrees in Accounting and Auditing and relocated to England in 2003. He gained financial and operational experience at firms such as RSM, Prudential, and Baker Tilly before transitioning into property. Since 2014, Jonathan has managed major commercial-to-residential conversions and new build developments, particularly across the South West. His analytical mindset and on-the-ground experience help listeners navigate the property world with confidence. Kieron is a construction expert and entrepreneur with over 20 years of industry experience. Starting as a mason, he went on to found Shepherd Construction in 2012, delivering projects across both the public and private sectors. From extensions to luxury new builds, Kieron has earned a reputation for quality, precision, and strong leadership. As Managing Director, he’s involved in every stage—from design to delivery—offering a no-nonsense, deeply practical perspective to anyone looking to build with success. https://www.facebook.com/jonathan.stobbs.7/ https://www.linkedin.com/in/jonathanstobbs/ https://www.facebook.com/kieron.shepherd.73 https://www.linkedin.com/in/kieron-shepherd-83b979aa/ https://www.propertydevelopersplaybook.co.uk/