How we select investments

Only investments that pass the rigorous assessment of the CapitalRise team,
with over 75 years of property development experience are selected

CapitalRise has an in-house team with over 75 years of property development experience. This team looks at more than 50 different factors when assessing whether a project is suitable to be offered to our investors. We spend a huge amount of time analysing every possible aspect of a project to ensure that it meets our rigorous underwriting standards. This means that only a small percentage of the projects that we get offered actually make it onto CapitalRise.

Our due diligence checks are focused on 4 keys areas:


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1. THE DEVELOPERS

First we start with the developer and its management team as we believe that people are the vital ingredient that make a project successful. We analyse the developer’s track record, their historical financial performance and review all the key management and staff to ensure they have the right experience and creditworthiness to be entrusted with our investors’ money.

We only back developers who have a consistent proven track record of profitable financial performance and have a high probability of success in the future.

2. THE PROPERTY

Once the Developer passes the first test, we then delve into the detail of the project and the property itself. This entails meticulous analysis of the property’s location and surrounding area. Detailed reviews of market demand for the project being proposed are undertaken including analysis of comparative property data and historical sales/lettings in the area. The team review all planning risks if applicable.

We only back properties in the finest locations in their market segment which have established market demand.

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3. THE BUSINESS PLAN

If the project has passed the first two tests, we then review in detail the business plan. What is the developer’s intention for the property? Does this plan make sense? All developers must have provided a complete and comprehensive financial appraisal to accompany their proposal. We evaluate whether timelines and allowances are sufficient and conservative.

We only back proposals that have a clear and sensible business plan which makes financial sense.

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4. THE FINANCIALS

The final test focuses very much on “the numbers”. CapitalRise analyse in great detail the financial appraisal and cashflows which have been provided. We check all of the assumptions which the developer has made to create the appraisal including an appropriate sales price, build costs, professional fees, miscellaneous costs and make sure that sufficient contingencies have been allowed.

We review the Capital Structure of the project and ensure that the project is fully funded and that the funding is appropriate (both the equity and debt) for the business plan. CapitalRise make sure that the developer’s equity is always the first to be wiped out if things don’t go according to plan so that our investors are as protected as possible on all transactions.

CapitalRise only backs proposals that have the appropriate profitability and rate of return to our investors for the risks being undertaken.

CapitalRise - intelligent property investing.

Capital at risk. No FSCS protection. See Key Risks.