51: Company Structures for Property Developers: What You Need to Know Before You Buy

53: How to Save Thousands on Property Developments: Through Value Engineering

Stop letting over-engineered building specs swallow your hard-earned profit margins. Navigating the balance between what an architect dreams up and what actually makes financial sense on the ground is a constant battle for property developers. Managing a development budget isn't just about finding the absolute cheapest materials; it is about strategic value engineering. Cost engineering simply manages expenses, but value engineering finds the sweet spot between time, financial outlay, and quality without compromising the final product. Dive into the practical realities of managing construction budgets, from pushing back on high-end insulation requirements to rethinking exterior details that do not add to the end valuation. Learn how to have those tough, early conversations with structural engineers and main contractors to protect the bottom line. It is entirely possible to deliver a top-tier finish while aggressively defending the project's profitability, provided the right questions are asked before the first brick is laid. Key Takeaways Never blindly accept initial building specifications without questioning if alternative, more cost-effective materials can achieve the exact same standard. Cost engineering focuses purely on managing expenses, whereas value engineering optimises the balance of time, financial outlay, and overall build quality. Have robust conversations with structural engineers and design consultants before full construction drawings are issued to avoid expensive mid-project revisions. Always evaluate if high-end finishes or complex architectural details will genuinely increase the final valuation of the property. Establish open communication with the main contractor early on to identify practical supply chain alternatives that protect the profit margin. Quotes "The key is not to cut corners. Cost engineering is talking about the actual cost of things and managing the costs, buying right." "Value engineering is when we're not just talking about cost, we're talking about time. If it saves us time, it's going to save us a lot of money down the line." "You can't just go around swapping things out. It has to be documented. Building control needs to know about it and warranty providers need it as well." "Don't give the architects a blank canvas to go off and do whatever they want. It has just blown build budgets completely." "As a developer, being the client, you might look at working to control those costs, so you know exactly what the contractor's plus is." YOUTUBE CHANNEL ⁠https://www.youtube.com/@propertydevelopersiq [https://www.youtube.com/@propertydevelopersiq] 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.facebook.com/jonathan.stobbs.7/]  https://www.linkedin.com/in/jonathanstobbs/ [https://www.linkedin.com/in/jonathanstobbs/]  https://www.instagram.com/jonathan.stobbs/ [https://www.instagram.com/jonathan.stobbs/]  https://www.facebook.com/kieron.shepherd.73 [https://www.facebook.com/kieron.shepherd.73]  https://www.linkedin.com/in/kieron-shepherd-83b979aa/ [https://www.linkedin.com/in/kieron-shepherd-83b979aa/]  https://www.instagram.com/kieron__shepherd/ [https://www.instagram.com/kieron__shepherd/]  https://www.propertydevelopersplaybook.co.uk/ [https://www.propertydevelopersplaybook.co.uk/]  Book your seat now on our 3-day live event, Property Developers Bootcamp  https://www.propertydevelopersiq.co.uk/pdblive [https://www.propertydevelopersiq.co.uk/pdblive]

52: How to Negotiate Property Deals: Negotiation Secrets Every Developer Must Know

Negotiation isn't just about the number on the page; it’s about making sure the deal actually stacks before you even pick up the phone. Too many developers are flushing hundreds of thousands down the drain by overpaying at the front end because they haven't done the legwork. We’re stripping back the "Art of Negotiation" to show you how professional due diligence becomes your ultimate leverage when talking to vendors. From identifying bat emergence windows to navigating the minefield of CIL and Section 106, we explain why your offer needs to solve the seller's problems, not just meet their price. Whether you are hounding an agent for a year or presenting a professional pitch deck to a hotel owner, everything in this industry is up for grabs if you know how to structure it. It’s time to stop winging it and start building a credible, systematic approach to every offer you make. KEY TAKEAWAYS Due diligence is the foundation of any negotiation, providing the "ammunition" needed to justify your offer price based on site constraints and risks. Everything in property is negotiable, including professional fees, build contracts, completion timelines, and even rental terms. A professional offer pack or "pitch deck" builds massive credibility with agents and vendors, proving you are a serious developer who can actually deliver. The goal is to negotiate against the deal’s risks rather than the person selling it, finding a sweet spot that works for both parties’ bottom lines. Emotional detachment is vital; you must be willing to walk away from a deal if the margins don't work, trusting your gut when a project feels off. QUOTES "There's a right way of doing it... our way of doing it. We find it successful and it works." "Everything is negotiable. Everything." "You're not negotiating against the seller. All you're doing is negotiating against the risk." "A good deal is a bad deal for both... you'll never have a deal that is perfect for you." "If it doesn't feel right, it's not right. You've got to trust your gut." YOUTUBE CHANNEL ⁠⁠https://www.youtube.com/@propertydevelopersiq⁠⁠ [https://www.youtube.com/@propertydevelopersiq] 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.1979 ⁠⁠⁠https://www.linkedin.com/in/jonathanstobbs/⁠⁠⁠ [https://www.linkedin.com/in/jonathanstobbs/]  ⁠⁠⁠https://www.instagram.com/jonathan.stobbs/⁠⁠⁠ [https://www.instagram.com/jonathan.stobbs/]  ⁠⁠⁠https://www.facebook.com/kieron.shepherd.73⁠⁠⁠ [https://www.facebook.com/kieron.shepherd.73]  ⁠⁠⁠https://www.linkedin.com/in/kieron-shepherd-83b979aa/⁠⁠⁠ [https://www.linkedin.com/in/kieron-shepherd-83b979aa/]  ⁠⁠⁠https://www.instagram.com/kieron__shepherd/⁠⁠⁠ [https://www.instagram.com/kieron__shepherd/]  ⁠⁠⁠https://www.propertydevelopersplaybook.co.uk/⁠⁠⁠ [https://www.propertydevelopersplaybook.co.uk/]  Book your seat now on our 3-day live event, Property Developers Bootcamp  ⁠⁠⁠https://www.propertydevelopersiq.co.uk/pdblive⁠⁠⁠ [https://www.propertydevelopersiq.co.uk/pdblive]

51: Company Structures for Property Developers: What You Need to Know Before You Buy

One of the most common questions from anyone getting into property development — and one of the most misunderstood. Jonathan and Kieron break down the company structures every developer needs to understand before they buy a single brick. From the risks of lumping everything into one trading company, through to SPVs, holding companies and joint venture structures, this episode covers the landscape clearly and without the jargon. There's also a really honest look at tax considerations, pension strategies, and why lenders actually prefer a clean, history-free SPV over a company with a track record. Spoiler: property finance works differently to almost every other industry. A timely reminder that structure isn't just admin — it's how you protect everything you build. Not tax or legal advice — just two developers who've been through it, sharing what they know. 5 KEY TAKEAWAYS Buying all your properties within one trading company is the riskiest approach — if one development runs into trouble, it can bring down everything else sitting alongside it. A Special Purpose Vehicle (SPV) — a separate limited company for each project — keeps developments clean, protected, and far more attractive to lenders and finance institutions. A holding company structure above your SPVs gives you greater control over profit extraction, tax planning, and scalability as your pipeline grows. Lenders don't want history in the development company — they want a clean SPV with no baggage. This is the opposite of how most trading businesses work, and it catches a lot of developers out. Structure should be planned from the very beginning, not retrofitted once you're already in. Getting advice from a tax professional early pays dividends — sometimes literally. QUOTES "Good structure is all about protecting profits and mitigating risk — it's not one size fits all." "If something had to go wrong with your one development, it could affect all the others — that's why we'd never advocate that approach." "They don't want the history in the company — they don't want the baggage. They want it as clean as possible." "It's not about not wanting to pay taxes. It's about not paying too much tax." "Start with the end in mind. Think about your company structure right at the very beginning — even if you're just doing land sourcing." YOUTUBE CHANNEL ⁠https://www.youtube.com/@propertydevelopersiq⁠ [https://www.youtube.com/@propertydevelopersiq] 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.facebook.com/jonathan.stobbs.7/]  ⁠⁠https://www.linkedin.com/in/jonathanstobbs/⁠⁠ [https://www.linkedin.com/in/jonathanstobbs/]  ⁠⁠https://www.instagram.com/jonathan.stobbs/⁠⁠ [https://www.instagram.com/jonathan.stobbs/]  ⁠⁠https://www.facebook.com/kieron.shepherd.73⁠⁠ [https://www.facebook.com/kieron.shepherd.73]  ⁠⁠https://www.linkedin.com/in/kieron-shepherd-83b979aa/⁠⁠ [https://www.linkedin.com/in/kieron-shepherd-83b979aa/]  ⁠⁠https://www.instagram.com/kieron__shepherd/⁠⁠ [https://www.instagram.com/kieron__shepherd/]  ⁠⁠https://www.propertydevelopersplaybook.co.uk/⁠⁠ [https://www.propertydevelopersplaybook.co.uk/]  Book your seat now on our 3-day live event, Property Developers Bootcamp  ⁠⁠https://www.propertydevelopersiq.co.uk/pdblive⁠⁠ [https://www.propertydevelopersiq.co.uk/pdblive]

50: 50 Episodes Later... We're Launching On Youtube

We’ve reached a massive milestone—it’s our 50th episode!. To celebrate, we are stepping out of our comfort zone and taking the podcast visual with the launch of our YouTube channel, Property Developers IQ. Looking back at our first 49 episodes, we reflect on the steep learning curve of moving from spreadsheets and construction sites to the podcast mic. In this episode, we dive into the core philosophy that drives our business: People, Place, and Profit. We discuss the necessity of building a "power team," the emotional roller coaster of development, and why we’re committed to showing you the "good, the bad, and the ugly" of the 100-dwelling pipeline we’re currently managing. Whether you're an aspiring developer or a seasoned pro, join us as we evolve from just an audio experience to on-site walkthroughs and deep-dive case studies. KEY TAKEAWAYS Growth Happens Outside the Comfort Zone: Moving from audio to video was a challenge for a numbers-focused accountant and a site-focused contractor, but essential for evolution. The Power Team is Non-Negotiable: You cannot do property development alone; success relies on building a core team of professionals like solicitors and planning consultants. The "Three Ps" Philosophy: Our work is grounded in People (building for others), Place (creating community), and Profit (ensuring a professional, sustainable business). Money is a Tool, Not a Barrier: You don't necessarily need all of your own money, but you do need access to capital through private investors or finance partners. Transparency in Development: We aim to bridge the information gap by sharing real build costs and case studies to help others overcome the fear of their first step. QUOTES "I love my spreadsheets... it was a lot easier no one talked back and as long as the numbers balance i'm a-okay." "As everyone knows you grow when you're outside your comfort zone." "Team is the most important thing... from day one you've got to start building that a team." "People always think that developers are greedy... but actually when you look at what a developer brings to the table... it's very understated." "Every day is a school day." YOUTUBE CHANNEL https://www.youtube.com/@propertydevelopersiq [https://www.youtube.com/@propertydevelopersiq] 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.facebook.com/jonathan.stobbs.7/]  ⁠https://www.linkedin.com/in/jonathanstobbs/⁠ [https://www.linkedin.com/in/jonathanstobbs/]  ⁠https://www.instagram.com/jonathan.stobbs/⁠ [https://www.instagram.com/jonathan.stobbs/]  ⁠https://www.facebook.com/kieron.shepherd.73⁠ [https://www.facebook.com/kieron.shepherd.73]  ⁠https://www.linkedin.com/in/kieron-shepherd-83b979aa/⁠ [https://www.linkedin.com/in/kieron-shepherd-83b979aa/]  ⁠https://www.instagram.com/kieron__shepherd/⁠ [https://www.instagram.com/kieron__shepherd/]  ⁠https://www.propertydevelopersplaybook.co.uk/⁠ [https://www.propertydevelopersplaybook.co.uk/]  Book your seat now on our 3-day live event, Property Developers Bootcamp  ⁠https://www.propertydevelopersiq.co.uk/pdblive⁠ [https://www.propertydevelopersiq.co.uk/pdblive]

49: How Do Development Valuations Actually Work: Demystifying Property Development Valuations

In this episode, Jonathan and Kieron break down the critical processes of valuations and drawdowns. They explain how developers can successfully extract money from their lender by working effectively with the Monitoring Surveyor, who acts as the primary gatekeeper for the funds.  KEY TAKEAWAYS The Monitoring Surveyor is the Gatekeeper: The MS works independently on behalf of the lender to verify your build costs and progress before any money is released. Building a good, honest relationship with them is essential. Funding is Released in Stages: You do not get your loan upfront; instead, you draw down funds in stages or "tranches" based on verified progress, usually assessed as a percentage of completed work. Avoid Overclaiming at All Costs: Attempting to claim for work that hasn't been completed yet will damage your credibility and can cause major cash flow delays down the line. Timing, Accuracy, and Evidence are Crucial: When submitting a drawdown request, make sure it is perfectly timed for your cash flow needs, mathematically accurate, and backed by clear evidence. Set Clear Terms with Contractors: Ensure your main contractor understands the valuation schedule and submits detailed, clear applications for payment that align with what the MS expects to see. BEST MOMENTS "Today we're talking about valuations, drawdowns... basically how to extract the money from your development through the lender and working with the key gatekeeper... who is the monitoring surveyor." "Ultimately cash flow is what keeps the whole development ticking, everyone moving forward... cash is king." "Timing, accuracy and evidence... they are really important points." "If you're trying to be shifty or sneaky, you're going to end, dig yourself into a hole." "You want the monitoring surveyor, whoever is the gatekeeper of the money, to be on your side or as much on your side as possible while they still independent and acting on behalf of the lender." 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.facebook.com/jonathan.stobbs.7/]  https://www.linkedin.com/in/jonathanstobbs/ [https://www.linkedin.com/in/jonathanstobbs/]  https://www.instagram.com/jonathan.stobbs/ [https://www.instagram.com/jonathan.stobbs/]  https://www.facebook.com/kieron.shepherd.73 [https://www.facebook.com/kieron.shepherd.73]  https://www.linkedin.com/in/kieron-shepherd-83b979aa/ [https://www.linkedin.com/in/kieron-shepherd-83b979aa/]  https://www.instagram.com/kieron__shepherd/ [https://www.instagram.com/kieron__shepherd/]  https://www.propertydevelopersplaybook.co.uk/ [https://www.propertydevelopersplaybook.co.uk/]  Book your seat now on our 3-day live event, Property Developers Bootcamp  https://www.propertydevelopersiq.co.uk/pdblive [https://www.propertydevelopersiq.co.uk/pdblive]