How We Analyse a Deal Before Investing

At PropInvest, we don’t just buy properties, we build strategies around numbers, planning, and precision. Every single project we take on, from BRRRs and HMOs to barn conversions and multi-units, starts with one thing: the deal analysis.

Because in property, your profit is made when you buy - not when you sell.

So how do we ensure we’re backing the right deals, at the right time, with the right returns?

Here’s a behind-the-scenes look at the numbers and criteria that guide our investment decisions.

1. Start with the End in Mind: The GDV

Before we even consider a site, we calculate the Gross Development Value (GDV), what the property or properties will be worth once the project is complete.

We do this by:

• Analysing comparable sold prices in the local area

• Reviewing current and forecast market trends

• Speaking to agents on the ground for insight into demand and valuation confidence

This gives us the ceiling price and helps determine if the numbers work from the outset.

2. Work Backwards: Costing the Entire Project

Once we’ve pinned down a confident GDV range, we build out the rest:

✅ Purchase Price – Is it achievable? Can we negotiate? Are there any hidden costs like stamp duty surcharges or structural issues?

✅ Build Costs – We work closely with our contractor network to get accurate estimates from day one. We factor in:

• Labour and materials

• Contingency (usually 10-15%)

• Timeframes, which can affect holding and finance costs

✅ Professional Fees – Planning consultants, architects, surveyors, solicitors - all accounted for.

✅ Finance – Whether it’s bridging, development finance, or private investment, we include all interest, arrangement fees, and exit charges.

3. Profit Margins: Our Non-Negotiables

We don’t touch a deal unless it offers a healthy return. For flips and smaller deals, we aim for a minimum of 20% return on costs. For larger developments, we push for 25–30%+ return on GDV.

This margin allows breathing room for delays, cost increases, or market shifts.

4. Exit Strategy: Always Have a Plan B (and C)

We never go into a deal with just one exit. Whether it’s:

• Sell on open market

• Refinance and retain for rental income

• Package to investors

We ensure multiple exit options are viable so we can pivot if needed. This has saved us - and our investors - more than once.

5. Area Fundamentals: Not Just a Good Deal, but in the Right Location

We analyse the fundamentals:

• Local employment & infrastructure

• School catchment areas

• Regeneration plans

• Commuter links and demand trends

The property might look good on paper, but if the area doesn't support the strategy, we walk away.

6. The Investor Fit: Who Will This Deal Appeal To?

We always think from an investor’s perspective:

• Is it suitable for a hands-off partner?

• Does it offer fixed returns or profit share?

• Is the timescale realistic?

• Will this project build long-term trust and repeat business?

At PropInvest, we pride ourselves on transparency and delivering results. That’s why our repeat investors come back time and again—because they know the analysis runs deep, and we never go into a deal lightly.

What Next?

There’s no shortcut to a solid property investment. It’s not about luck—it’s about numbers, due diligence, and knowing what makes a deal truly profitable.

If you’re an investor looking to partner on deals where the numbers stack and the strategy is crystal clear, we’d love to chat.

📩 Drop us a message or head to our contact page to connect.