Do you want to Invest with us
We are continuously evaluating new development opportunities to co-invest with the developer and our capital partners. If you wish to join us in a pre-vetted, risk mitigated project then get in touch with me for a chat.
Boomscore Capital Partner’s property team includes architects, engineers, developers and project managers with the ability to undertake all stages of the development lifecycle, from site acquisition, council approvals, construction and the end sale of off-the-plan properties (units, houses and land subdivisions).
Once a development opportunity has been secured, Boomscore Capital Partners, investors are invited to participate at various stages in the capital stack including pre-DA approval (preferred equity) all the way through to construction (mezzanine debt). The returns offered reflect the differing risk profile of the project as it advances through each stage.
Once an offer is closed, the funds are managed by our fund management team under the appropriate financial licence.
become a property development investor
Are you too busy, inexperienced or too risk averse to undertake your own property development project? Maybe you want to diversify your investments without being exposed to a single project of your own.
Investing in property development has been democratised with the internet opening access to projects for retail and wholesale investors chasing above market returns in a compliant structure.
The internet has made it possible for everyday investors to enjoy the kind of returns once restricted to wealthy investors and developers alone.
The key steps to successful property development investing
Successful investment in property development projects requires a solid understanding of the stages in a development project and how to mitigate the risks as a capital partner investing with the developer. This is sometime referred to as Armchair Development whereby the developer provides their time and expertise in order to take a project from concept to completion while the investors provides some of the cash in return for a monthly return on a loan or a larger lump sum on completion of the project. The developer takes on the bank debt while the investor is offered an equity and preference equity position in the project outcome.
Dr Kim Ngo
Once you see your money back with the expected returns you know this is the real deal. It's a no-brainer. Only wished I had found you earlier....
STEP 1: Getting Started
Investing in property development projects is not for everyone until you understand the risks and how the risks impact a particular project. If you are wondering if now is a good time to invest in property developments, the simple answer if YES. When you understand the local market dynamics and the risk mitigation measures in place, then you might be in a better position to move forward with confidence. All the investors mentioned on this page started there journey here. They had the same concerns and excitement as you may have. I invite you to equip yourself with the knowledge to invest like a professional.
STEP 2: The Property Development Process
Property development is a complex undertaking that revolves around the people involved. Assembling the best team has taken us nearly a decade to achieve. We work with consultants across various disciplines depending on where the project is located. Boomscore Capital Partners manage the process as your representative on the project panel.
Juerg & Nicola Nydegger
"I had had a previous experience which had not been a great success, so I wanted to make sure that we would not be losing any money.
Juerg & Nicola have since invested in 4 projects most recently earning another 30% fixed dividend in 13 months.
I am very pleased with the financial outcome of the project being a net return of 49.19%.
STEP 3: Finding a Suitable Site
The next step is we use our unique property data algorithms-you may have sampled this technology by using Boomscore. Our data removes the subjective nature behind finding a site. It answers important questions like what can we sell the product for, how much depth (buyers) are there to ensure everything sells fast. Our developers understand that we don't operate on gut-feel or local market bias. If our 'site suitability score' is high then we pass one test in many. We also prefer to acquire sites off-market to give us time to negotiate with the seller, the council town planners and a range of resources to minimise the risks of entering a project.
STEP 4: Financial Feasibility Analysis
In over 10 years of providing capital to developers, one thing I have learnt is even the best of breed developers can over estimate the revenue from sales and the overall development costs. There are a number of measures we have in place to independently quantify the costs and the total revenue impacting our returns. This can include appointing an independent valuer and quantity surveyor.
After all, the bottom line is this is about making money. I'm approached weekly to support various projects and the vast majority do not stack up but they subsequently raise money elsewhere. I hope those investors do okay.
I achieved a 42% return on my $100,000 over 19 months. Have told my friends and family and will definitely invest with Boomscore Capital Partners again.
John has since invested in 3 projects most recently earning a fixed return of 30% in our latest land subdivision.
MSF INVESTOR, BANKER
A developer's 57% return on my cash without all the work. Everything ran smoothly.
Tracy has since invested in 2 projects including settling on her new townhouse at 21.7% below bank valuation and she earned a 57% return on cash (in one year).
STEP 5: Purchasing a Site
We live by the mantra, "a developer's price for developer's terms". What this means is we always ensure the seller gives us enough time to undertake thorough due diligence so we can uncover any potential risks that either impact the final price or are easily solved. Once we secure the site, we will invite our investors to review the project offer.
STEP 6: Development Finance
There are various stages in a development that require different funding types and sources as the project evolves. Before we can obtain finance, a lot of thought goes into setting up a special purpose vehicle (SPV) - essentially a trust or company that only exists for the duration project and is dissolved on completion of the project. This vehicle undertakes the project while a seperate investment SPV is formed to loan money from our capital partners (investors) on terms that reflect the stage being invested in. Our investors are not liable for any bank debt. Typically they are viewed as an equity partner without any liability whatsoever. This is not the case in a pure joint venture, however.
Jonathan & Brianna Mansfield
These have been the best investments I’ve made with continued growth even during a housing market downturn.
Jonathan has invested in 2 small development projects both delivering results as promised.
Simon & Nicole Amery
The lending environment was making it too difficult to secure investment property loans. Throughout the entire project the updates were stand out giving me an inside view to progression and conveying the challenges and concerns. At all times I felt informed and involved.
Simon and Nicole achieved a 30% fixed return in approx. 14 months.
STEP 7: Valuations
Valuers are crucial for project debt funding purposes. The lenders will always require a commercial valuation that assesses the entire project fundamentals. We also require a valuation to support our analysis of the project.
Valuations can be tricky due to the subjective nature of something that does not exist i.e. the final properties to be built. There can be significant differences in valuation and it's our job to provide all the local market data and supporting numbers to get the valuer 'on side'. A lower than expected valuation can cause major issues so this is a crucial part of the project investment process.
STEP 8: Design
One of our strengths as a property market research technology business is we understand local markets. Who wants to live there and what they want. Not what the creative architect wants. Not what the developer wants. We get a deep understanding of the demographic and psychographic of our typical end buyers.
Many developers build according to their own ideas of taste and style and then wonder why they end up stuck with properties nobody wants! A good design will make all the difference to the success of the development so matching the skill of the designer or architect is important.
EQUITIES TRADER, SYDNEY
As an algorithmic equities trader for a major investment bank, I had been looking for investment strategies that offered the chance of excess market returns. Boomscore Capital Partners delivered.
I was looking to do my own development but did not have the amount required or expertise. The project I invested in was suitable and offered high returns in comparison to the risk with relatively low amount of investment.
STEP 9: Local Council Permits
Most developers dread the thought of having to deal with local councils. We love it. In fact it's one of the areas we have excel in. When we've been told we can get 20 lots, we've obtained approval for double that. When we've been told we cannot get approval due to some planning constraints relating to local wildlife - our team of consultants have proven otherwise. We've even convinced a high court judge of the merits of what we are doing. Our principle developer has personally obtained higher yields than the rule allow. It's this creative thought in combination with understanding the rules that takes a project from profitable to BOOM. We also prefer obtaining our own approvals because, in most of our projects, it has lead to a boost in the value of the site prior to securing funding and we mostly only choose projects where there is no requirement to advertise the project thereby stirring up the local NIMBYs.
STEP 1: Marketing
We've developed a number of powerful marketing strategies that we don't share widely. They work. Marketing a development is an essential part of the pathway to profits. We never wait until the project is complete before starting to market the project. In most cases we test the market by obtaining pre-sales (off-the-plan) before we even settle the site.
I came across Boomscore through a friend and found Michael very professional and friendly in explaining the concept of armchair developmentI would love to work with the Boomscore and Michael again.
I'm very satisfied with the result which allows me to spend more time with the people I love and to do charity work.
STEP 11: Project Management
Now we come to the actual construction and building of your development. If you've followed Property Mastermind’s blueprint up until this point, most of the hard work has already been done. Remember that you don’t have to be an expert builder yourself. Simply make sure you hire the right builder and this stage should not require too much of your time.
Once construction is complete, you're almost home. But before you can collect your profits, there's one final stage to complete: SETTLEMENT. Settlement involves completing all the final paperwork and inspections so that you have recognised ownership and can sell your completed development. It's important that this goes smoothly because the sooner settlement is complete, the sooner the cash will be in your bank account. Every day that settlement is delayed could be costing you hundreds, even thousands of dollars. So it’s important to get this right.