Property Developers Playbook

In this episode, Jonathan Stobbs and Kieron Shepard dive deep into the delicate dance between high-end aesthetics and healthy profit margins. Drawing from their current "Woodlands" development and past conversion projects, the duo explores why you should never design for yourself, but always for the end buyer. 

KEY TAKEAWAYS 

Target Market is King: Always work backward from your Gross Development Value and target demographic. A luxury apartment in London requires a vastly different specification than a standard rental property.

The "Want" vs. "Need" Philosophy: Developers must distinguish between luxury wants that eat into margins and functional needs that drive sales.

High-Impact Areas: Focus your budget on kitchens and bathrooms, as these are the showy areas where buyers spend the most time and base their emotional purchasing decisions.

Program Efficiency: Choosing materials isn't just about the cost of the item; it’s about how it affects the build schedule. For example, certain flooring types allow other trades to finish their work sooner, saving money on labor and time.

Avoid Over-Personalization: Your personal taste is irrelevant. The goal is to create a move-in-ready feel that appeals to the masses while adding enough warmth through organic colors to stand out from the sea of sterile white and gray.

BEST MOMENTS

"The biggest thing is you're not designing for yourself; you're designing for the end buyer."

"A lot of my guys always say 'Champagne dreams, lemonade money'—it’s easy to want more than you can afford."

"Budget shouldn't drive the design, and design shouldn't drive the budget. It’s about understanding the end use."

"Everything has gone too gray. It's become boring. We need to put some warmth back into our homes."

"People buy on emotion. If you go in and get this amazing feeling from a property because it just looks and feels right, that's the turn-key win."

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.instagram.com/jonathan.stobbs/

https://www.facebook.com/kieron.shepherd.73

https://www.linkedin.com/in/kieron-shepherd-83b979aa/

https://www.instagram.com/kieron__shepherd/

https://www.propertydevelopersplaybook.co.uk/

Book your seat now on our 3-day live event, Property Developers Bootcamp

https://www.propertydevelopersiq.co.uk/pdblive

In this episode, Jonathan and Kieron dive deep into the analytical engine of property development: deal appraisal and financial modeling. Moving beyond the excitement of finding a site, the duo breaks down the core components of a professional appraisal, from Gross Development Value (GDV) and build costs to finance fees and section 106 agreements. 

KEY TAKEAWAYS

The fundamental goal of an appraisal is to work backward from the GDV, subtracting all costs (build, finance, professional fees, and profit) to determine the maximum price you can pay for the land.

While lenders often look at ‘profit on cost’, developers should also aim for a ‘profit on GDV’ between 23% and 25% (typically equating to 30% on cost) to ensure a healthy buffer.

Always model worst-case scenarios, such as build costs rising by 10% or GDV dropping by 5%, to see if the project remains viable under pressure.

An industry-standard 10% contingency is non-negotiable for most lenders and serves as a vital safety net for unforeseen "abnormals" like moving underground drains or trees.

Presenting a professional "offer pack" with detailed numbers to an agent or vendor builds credibility and justifies why your offer might be lower than the asking price.

BEST MOMENTS

"Property development is a numbers game. This clarity gives you more confidence when you go and make those offers because you come across more credible."

"A spreadsheet is only as good as the data that goes in it. It can't magic answers for you; if you put in bad data, you're going to get bad results."

"Don't get too emotional, this is a business. Keep it simple, stupid."

"I'd rather make an offer that works for you than try to just buy the work."

"The first time you get in a car, you're like, 'How do I do everything?' The more you do [appraisals], the quicker it becomes just like driving."

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.instagram.com/jonathan.stobbs/

https://www.facebook.com/kieron.shepherd.73

https://www.linkedin.com/in/kieron-shepherd-83b979aa/

https://www.instagram.com/kieron__shepherd/

https://www.propertydevelopersplaybook.co.uk/

Book your seat now on our 3 day live event Property Developers Bootcamp

https://www.propertydevelopersiq.co.uk/pdblive

In this episode, Jonathan and Kieron break down the complexities of securing property development finance in 2026. The duo explores the ‘capital stack’, explaining the roles of equity, senior debt, and mezzanine finance, while comparing the pros and cons of working with brokers versus going directly to lenders. They share their understanding of the various fees involved, from arrangement and exit fees to monitoring surveyors, and learn exactly what lenders are looking for, including credible exit strategies and developer track records. 

KEY TAKEAWAYS

Development funding typically consists of developer equity, senior debt (usually 65-70% of Gross Development Value), and potentially ‘stretch senior’ or mezzanine finance to bridge gaps.

Brokers offer access to a wider market and handle ‘packaging’ the deal, while going direct can save on fees and help build long-term institutional relationships.

Developers must account for a wide array of costs beyond interest, including arrangement fees, exit fees, commitment fees, legal fees for both parties, and valuation fees.

Lenders care most about a credible Plan A exit strategy, the developer’s experience/team, and having ‘skin in the game’ through equity or planning uplift.

Over-communicating with lenders and being realistic about build costs and timelines (including a 10% contingency) is vital to preventing defaults and high-interest penalties.

BEST MOMENTS

"Securing funding is one of the biggest bottlenecks in property development. It’s not just a loan; it’s structured risk."

"For a newbie, it can be quite daunting, especially when you're borrowing hundreds of thousands or millions for a project, not just a home."

"Lenders aren't just funding the project; they're funding the risk profile of the developer."

"You’re looking for this person [a broker] to be almost just outside of your team but still part of it."

"Every development project is a business, and like every business, you need a plan, and you need to know how you plan to repay."

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.instagram.com/jonathan.stobbs/

https://www.facebook.com/kieron.shepherd.73

https://www.linkedin.com/in/kieron-shepherd-83b979aa/

https://www.instagram.com/kieron__shepherd/

https://www.propertydevelopersplaybook.co.uk/

Book your seat now on our 3 day live event Property Developers Bootcamp

https://www.propertydevelopersiq.co.uk/pdblive

In this episode, Kieron and Jonathan discuss the evolving landscape of site finding in 2026. While the core principles of development remain steady, the tools and technologies available to developers have shifted significantly. The duo explores traditional methods like direct vendor letters and building relationships with agents, while highlighting how new software and AI integration are streamlining the research process.

KEY TAKEAWAYS

Traditional methods like direct-to-vendor letters and building strong relationships with both residential and commercial agents remain effective, though they now require a more targeted approach.

Modern software (like Nimbus Maps or Searchland) and AI tools are excellent for quickly rejecting bad deals, but they don't replace the need for human judgment and ‘gut feel’.

Landowners are more informed about planning potential in 2026, which can lead to higher price expectations and the need for more complex structures like joint ventures.

Site finding is a continuous business process, not a one-off task. Maintaining a pipeline of potential deals is crucial for better negotiation leverage.

Developers should focus on controlling land through options or conditional contracts rather than outright ownership to minimise financial and planning risk.

BET MOMENTS

"The fundamentals haven't changed, but the speed and tools have."

"The tools don't find the deals; they remove bad ones faster."

"Consistency beats cleverness."

"Site finding is a pipeline; it's not a one-off task."

"Developers don't just find sites, they create them."

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.instagram.com/jonathan.stobbs/

https://www.facebook.com/kieron.shepherd.73

https://www.linkedin.com/in/kieron-shepherd-83b979aa/

https://www.instagram.com/kieron__shepherd/

https://www.propertydevelopersplaybook.co.uk/

Book your seat now on our 3 day live event Property Developers Bootcamp

https://www.propertydevelopersiq.co.uk/pdblive

In this episode, Jonathan Stobbs and Kieron Shepherd delve into the five core myths surrounding property development that often deter aspiring developers. Jonaathan & Kieron discuss misconceptions such as the need for substantial personal funds, the perceived safety of small developments compared to larger ones, and the belief that experience is a prerequisite for success in the field.

KEY TAKEAWAYS

Myth of Money Requirement: It's a common misconception that you need a lot of your own money to start in property development. In reality, you can leverage other people's money (OPM) through investors, family, or friends, and you only need a small amount of your own funds for initial costs like legal fees.

Risk in Development Size: Smaller developments are often perceived as safer than larger ones, but risk is more about margins and complexity rather than size.

Experience is Not Mandatory: Many believe that you need extensive experience to be a successful developer. However, surrounding yourself with a knowledgeable team can compensate for your lack of experience.

Development is More Than Building: Property development encompasses various stages beyond just construction. Developers can add value through land sourcing, planning, and even selling sites before construction, allowing for multiple exit strategies.

Investor Relationships Matter: While returns are important to investors, building trust and maintaining strong relationships is crucial for long-term success. 

BEST MOMENTS

"Most of what people believe comes from social media headlines or speaking to people down at the pub who have no clue."

"You do need a bit of money, but it doesn't have to be your money. It's OPM, other people's money." 

"Risk isn't about the size; I think it's all about the margins and complexity and buffers."

"You don't have to build five houses out to build another five houses out to build another ten." 

"Returns attract investors. Trust keeps them."

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.instagram.com/jonathan.stobbs/

https://www.facebook.com/kieron.shepherd.73

https://www.linkedin.com/in/kieron-shepherd-83b979aa/

https://www.instagram.com/kieron__shepherd/

https://www.propertydevelopersplaybook.co.uk/

Book your seat now on our 3 day live event Property Developers Bootcamp

https://www.propertydevelopersiq.co.uk/pdblive