I see many experienced investors avoiding new builds. I can tell they’re eager to dive in—they’re excited by the idea—but something about it feels intimidating, which holds them back. I know this because I once felt exactly the same.
The thought of property development used to terrify me. The image I had in my head was far more daunting than the reality.
Fast forward to today, and I’ve overcome my imposter syndrome. I’ve just secured a scrapyard, which I plan to convert into 10 houses. There’s also a commercial property on-site, which I’ll be turning into flats (subject to planning). On top of that, I have another site ready for 10 units, along with a few land option agreements in progress.
This is the advice I have for experienced investors looking to step into new build developments—and for newcomers aiming to gain the experience needed to reach that point. It’s neither quick nor easy, and you will face hurdles. That’s why I’m keeping this article grounded and pulling no punches.
In 2012, I was somewhat forced into becoming a ‘property investor.’ At the time, I was living in a six-bedroom house that I could barely afford. To cover the bills, I rented out rooms to five other people, all of whom were students. There was even a small unit in the garden that I used as a bed and breakfast. Holiday lets weren’t as popular in 2012, so I had to turn to sites like Gumtree to find people.
I was what’s known as a ‘host mother.’ The people staying with me were essentially my guests. I cooked for them, kept the place clean, and drove them wherever they needed to go. In many ways, I became a mother of six!
There wasn’t a pot of cash waiting for me at the start. Building up capital took time—sharing the property helped, and I took on any extra work I could find. Looking after people’s pets, driving high-net-worth individuals—whatever it took.
Eventually, my savings grew enough for my first project. From that point, everything snowballed.
I began with straightforward renovations, turning properties into houses in multiple occupations (HMOs). Every penny came from my savings or bank finance. Nothing glamorous about it. I made sure to document as much as possible on social media.
By the time I reached my third project, some of the wealthy people I had worked for reached out to me. They wanted to invest in me. Money wasn’t their issue. What they didn’t want was the hassle of finding projects, managing renovations, or dealing with tenants. If I could handle all of that, they’d fund everything.
Plenty of people like that are out there. Those with experience and integrity can offer a ‘build your portfolio for you’ service, which can be a game-changer.
The biggest hurdle wasn’t finding investors. It was my imposter syndrome holding me back. Even while running my own projects, self-doubt clouded my judgment. Asking people for money didn’t even cross my mind. That mindset probably slowed my growth. Only when investors approached me did I start to think that maybe, just maybe, I was good enough.
The best way to beat imposter syndrome is to push through the invisible barriers you’ve created for yourself. That’s exactly what I did.
Finding three-bed semi-detached properties for investors and splitting them into two units felt easy. The process became second nature. Without realising it, I was playing it safe.
Then, a site came up for sale in my village—a bungalow with planning permission to convert into two flats. The price was a steep £325,000, which made it seem out of reach.
New build projects had always piqued my interest, but fear held me back. This time, rather than listening to self-doubt, I backed myself. I put in an offer and negotiated the price down to £260,000. To fund the deal, I borrowed £300,000 from an investor, agreeing to a 28% return over a year.
Challenges came thick and fast. Builders underperformed, which forced me to manage the project myself to cut costs. The refinance of the two flats completed just one day before the repayment deadline. Stress levels were at their highest, and I swore I would never take on another new build. But as you can see from this article...that didn’t last, and now I’m juggling multiple sites.
When you take on your first project, you’re at the mercy of everyone around you, especially if you’re working with a tight budget.
Banks can tell when you lack experience. In that case, they’ll either refuse to lend to you or offer you finance products that are ridiculously expensive.
Working with a budget also means you won’t attract the best builders. Some, especially those who realise you’re new, will try to take advantage.
What saved me was the experience I had gained. I started with HMOs, moved on to single-storey extensions, then loft conversions, and eventually double-storey extensions. That track record made a difference. Banks and investors could see my progress, which meant that over time, I gained access to better finance products and learned what to look for in tradespeople before hiring them.
On that first project, I risked everything. My own home and my HMO were used as collateral. People told me I was crazy and would lose it all. That was a very real possibility. But that’s the thing: when you start, you have to sacrifice more—but only at the beginning.
If you want to find investors and raise finance, it helps to already be in the property industry, networking and building relationships. When you're surrounded by established investors and developers, you're connecting with people who have access to capital and understand investment.
I’m not a great salesperson, but I believe that if you stand firm, demonstrate credibility, and build a positive reputation, people will approach you to invest. On the other hand, if you’re a strong salesperson, raising finance becomes much easier.
What’s tough is delivering on your promises—completing projects on time and paying investors back. That’s what earns you a solid reputation.
You only have one reputation. Once it’s gone, it’s gone. Focus on building your credibility and track record, and everything else will fall into place.
If you lack experience, one way to mitigate this is by teaming up with people who have it. That said, always vet anyone before working with them. Don’t get swept up just because an experienced person wants to collaborate—ensure they’re someone you can trust.
There are people out there who genuinely want to help you. For example, I let one of my apartments in London to a friend of a friend on a rent-to-rent contract because I wanted to help her get started.
Another option is to work for those with experience. I was recently hiring for an admin position, offering a wage while teaching them everything I know about developments and allowing them to shadow me on my sites.
The most frequent mistake I see property developers make is that the numbers on their projects just don’t add up. They get so excited about securing a deal that they end up offering the vendor too much for the site.
A short while later, they realise they’ve overpaid and find themselves having to renegotiate with the vendor.
Some developers even use this tactic intentionally. They’ll wait until just a week—or even a day—before completion, then lower their offer. This doesn’t sit well with me ethically. When you do this once, you've ruined your reputation with the estate agent. Word gets around quickly.
I typically get most of my opportunities on the second attempt, after the sale has already fallen through. Just because a site is sold subject to contract doesn’t mean you should remove it from your radar. Keep monitoring it. If the sale falls through, the owner will likely be more motivated and open to negotiating a more realistic price.
I also notice some people avoid new build projects, thinking they’re too large or intimidating. From my experience, I actually find them simpler than some refurbishment projects. Sure, there are surprises along the way, like archaeological surveys or utility issues, but once you’re past the groundwork, the process is often far more straightforward.
Being a property developer is essentially another way of saying you're a full-time problem solver. You need to get good at thinking on your feet and surround yourself with people who can help tackle the problems that will inevitably arise.
To get a sense of what to expect, start with a smaller project. Understand that it will be tough. Anticipate it. But at least when you’ve gained experience with something smaller, like a one- or two-unit development, you’ll be better prepared for the obstacles you’ll face when taking on larger projects.
My final piece of advice is to learn to do things the right way and never stop learning. I’m still learning myself. I’ve never done a commercial conversion before, and I’m about to take on my first one. Never think you know enough.
I am passionate about helping others. There’s plenty of room for collaboration in our industry. If there’s anything I can do to support you, including offering advice, don’t hesitate to contact me using the details below.
Website:
Instagram: @victoriadevelops
LinkedIn: Victoria Tsoy
