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Is it Time to Try Passive Property Development?

Peter Hemple talks with Mike Coyne at the Coyne Group

Coyne Group specialises in property developing and it funds the projects through working with private investors who put in a minimum of £25,000 upwards. The Group has successfully completed at least 18 projects in the UK, with several more in the pipeline. To find out more about their investment model I interviewed the Coyne Group’s Mike Coyne and start by asking how long the company has been doing these development projects using private investor funding.

“We have been engaged in these types of development deals for the last six years and throughout that period we have constantly evolved the model to work harder, both for our investors and for us as a business. In its current iteration the model has returned an average ROI (return on investment) of 39.45% for our investor group.

“The model is targeted at investors who are interested in short term investments, especially planning gain flips, or build out and sell. This generates a fast turnover of capital which in turn achieves a high ROI, hence the reason we have exited all of those developments. The buy and hold model is an entirely different, long term, investment proposition that targets a contrasting part of the investor spectrum. However, holding onto these developments is an exciting new investment opportunity that we are going to launch in the near future. Further details will be released within the next few months.”

Once hearing how high the returns are, many investors would immediately wonder why the Group doesn’t just use bank finance and keep those high returns in-house. However, as Mike explains, the investor finance is used in combination with other, less traditional, financing methods to actually increase the ROI.

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