Private Funding | DM Properties | Fixed Annual Returns Backed by Property Projects
Service 02 / Private Funding

A fixed annual return, without owning the property.

You lend capital. We deploy it into a project we’re already running. You earn a fixed annual return for the agreed term, and your capital is returned in full at the end. Twelve month agreements are most common, with multi year options available on larger sums.

What It Is

Property returns, without the property.

Buying a property to rent it out captures both rental income and capital growth. Lending against property captures neither directly. What it does instead is take the work, the time, and the operational risk of owning a single house off your plate.

Private funding is a written loan agreement between you and DM Properties. You lend a fixed sum for an agreed term. We pay a fixed annual return. Your capital comes back in full at the end of the term, alongside the accrued interest.

The capital goes into the company. We use it across our active project pipeline as needed: refurbishments on properties we own, working capital for purchases nearing completion, occasional bridging between buying and refinancing. The loan is to the business, not tied to any single property. The loan agreement we use has been drafted by solicitors and you’re welcome to have your own solicitor review it before signing if you wish.

You’re a lender, not a buyer. There’s no property in your name, no tenant to manage, no refurb to oversee. The only paperwork you sign is the loan agreement itself.

In Practice

"The clearest path to a property backed return without becoming a landlord."

Who It’s For

If you want returns, not responsibilities.

For people who want capital working at a property linked rate without becoming a landlord, a project manager, or a name on a title deed.

Cash sat in low interest accounts

Funds in savings, ISAs, or business reserves earning less than inflation. A fixed annual return for a defined term puts that capital to work without locking it away forever.

Predictable, not punchy

If you want a fixed rate paid on a fixed schedule, not a variable share of an outcome, this is the right structure. The return is set in writing the day you sign.

No time to manage property

Busy careers, family commitments, businesses to run. You like the idea of property exposure but won’t deal with tenants, tradespeople, or solicitors. Lending is the cleanest route in.

Diversifying alongside other assets

You already hold pensions, equities, or rental property. Adding a fixed return loan against active property projects spreads risk across uncorrelated structures.

Typical funder profile: £20,000 or more to deploy, a 12 month horizon they’re comfortable with, and a preference for a defined return over the variable upside of equity. Many of our funders roll the loan over for a second term once the first repays.
How It Works

Four stages. All documented in writing.

Private funding is intentionally simple. There’s no property to buy, no refurb to manage, no tenant to handle. The whole transaction sits in a written loan agreement that defines the rate, the term, and the security if applicable. Here’s how it runs from first call to repayment.

01
Stage 1 · First Conversation

Understanding what you want

A 30 minute discovery call. We talk through how much you’d like to put in, what term suits you, and which of our current projects fit. We answer your questions on the loan structure, the security, and our track record. No commitment at this stage. You leave the call with a written summary of what we’ve discussed.

02
Stage 2 · Loan Agreement

The paperwork

We send you our standard loan agreement, which has been drafted by solicitors. You review it, or have your own solicitor review it if you prefer. Both parties sign. The agreement sets the rate, the term, the repayment schedule, and the security if applicable. Loans of £100,000 or more, where we’re the sole lender or replacing institutional lending on a specific asset, can include a registered charge against the property as additional security at a lower rate.

03
Stage 3 · Capital Deployed

Funds go to work

You transfer the agreed sum to DM Properties on signing. The funds enter the company’s working capital and we deploy them across our active pipeline as needed: refurbishments, completions, bridging between purchase and refinance. You receive a confirmation that the loan is live and the term has started. From here, your job is to wait.

04
Stage 4 · Repayment

Capital and interest returned

At the end of the agreed term, your capital is returned to you in full alongside the interest accrued over the period. The standard structure is a single payment at term end covering both, though monthly interest can be arranged on larger sums by agreement. Many of our funders choose to roll the loan over for a second term at this point.

What You Need

Three things. That’s it.

£20,000
Minimum to lend
Below this, the legal and administrative costs eat into the return. There’s no upper limit. Larger sums often allow more flexibility on terms and security.
12 months
Standard term
Twelve months is the most common agreement. Multi year terms are available, particularly on larger amounts. The term is fixed once the agreement is signed.
ID verification
Standard AML checks
Photo ID and proof of address, completed once at the start. Standard checks for any private lending arrangement.
How the return works. The annual rate is fixed in writing the day you sign. Interest accrues over the term. The standard structure is a single repayment at term end covering both the original capital and the accrued interest. Monthly interest payments can be arranged on larger sums by agreement. The exact rate is discussed on the discovery call once we understand the term you want and the project the funds will go into.
How An Agreement Works

Two ways to receive your return.

Both options below use the same underlying loan structure. Pick the one that suits how you want to receive your interest. Specific rates are agreed in writing on the discovery call before any agreement is drafted.

12 Month Loan Agreement

A loan to DM Properties, repaid at term end

Capital lent to the company for use across our active project pipeline. Repaid in full on the final day of the agreed term, alongside the interest accrued under whichever option you’ve picked.

Option A · Rolled up interest

Single payment at term end

Capital and interest paid as a lump sum on the final day. Most of our funders take this option. Headline rate is a touch higher than Option B to reflect the deferred payment.

Option B · Monthly interest

Income each month, capital at end

Interest paid each month as cash flow rather than rolling up. Capital returned in full on the final day. Headline rate is slightly lower than Option A to reflect the monthly payments.

Specific rates are agreed on the discovery call

The rate that applies to your loan depends on the term, the size, the structure you pick, and whether security is registered. We’ll walk through the numbers with you on the call and put everything in writing before any agreement is drafted.

Common Questions

Everything you might want to ask.

How is this different from leaving money in a savings account?

The rate is fixed and known up front. There’s a defined term, so your capital is committed for the agreed period rather than available on demand. The trade off is a higher annual return than a high street savings account, in exchange for less liquidity over the term.

The capital is also backed by an active property project rather than sitting on a bank’s balance sheet. Different risk profile, different return profile.

How is the loan secured?

Every loan is documented in a written agreement signed by both parties. The agreement sets out the rate, the term, the repayment date, and any security applicable.

The loan itself is to DM Properties as a company. For larger loans, typically £100,000 or more, where we’re the sole lender on a specific asset, we can register a charge against that property as additional security. Secured loans carry a lower headline rate to reflect the reduced risk profile. For loans below this threshold or where no charge is registered, the obligation sits as a contractual debt of the company at the higher headline rate. Both structures are common in private property lending. The specific rate that applies to your situation is agreed on the discovery call.

What happens if a project takes longer than my loan term?

If we’re running into timing pressure as your repayment date approaches, we’ll get in touch well ahead of it. The standard provision in the loan agreement is that interest continues to accrue at the same rate beyond the original term until the loan is repaid. If you’re on rolled up interest, the additional period rolls into the final payment. If you’re on monthly interest, payments continue at the agreed rate until repayment.

You still receive your full agreed return for the original term and additional interest for any extension. Nothing changes in your favour.

What happens if DM Properties stops trading?

Honest answer: as a private lender to a company, you sit as a creditor of the business in any insolvency scenario. Where a registered charge applies (typically loans of £100,000+ tied to a specific asset), you have a secured claim ranking ahead of unsecured creditors. Where there’s no charge, you rank with the company’s general unsecured creditors.

We’ve been operating since 2017 with our own equity in every project, established lender and broker relationships, and a track record of completing what we start. We don’t take on funding we can’t responsibly deploy. But this is private lending, not a deposit account, and you should understand the position before signing.

What rate of return can I expect?

It depends on the term, the loan size, the structure you pick (rolled up vs monthly interest), and whether security is registered. Rates are agreed in writing at the outset and fixed for the life of the loan. Specific figures are discussed on the discovery call once we understand your position and the agreement that suits you.

The illustrative example on this page reflects typical rates on a 12 month structure.

When and how do I get paid?

You choose between two structures, both set out in writing before you sign. Rolled up interest pays your capital and the accrued interest as a single lump sum at term end. Most of our funders take this option and the headline rate is a touch higher to reflect the deferred payment.

Monthly interest pays out each month across the term, with your capital returned in full on the final repayment date. The headline rate is slightly lower to reflect the cash flow. Either way, the rate is fixed for the life of the loan and the choice is yours.

What if a project we’re running goes wrong?

Not every project lands exactly as planned. Refurbishments overrun. Sales take longer than expected. Refinances get pushed back. The mitigation is that the loan is to the company rather than tied to a single deal, so a problem on one project doesn’t put your repayment at risk in isolation. We have our own equity in every project, established broker and lender relationships to draw on if a project hits delays, and a track record of completing what we start.

The loan agreement also sets out what happens in the event of late repayment, including the interest accrual provision covered above.

Can I get my money back early if I need it?

The term is fixed once the agreement is signed. We commit your capital to a specific project on the basis it’s available for the agreed period, and we plan our project finance around that.

That said, in genuine emergencies we’ll always try to find a route. Sometimes that means refinancing the underlying property earlier. Sometimes it means another funder steps into your position. It’s never guaranteed and you shouldn’t lend money you might need back at short notice.

Can I roll the loan over for another term?

Yes, and many of our funders do. The conversation typically happens a month or two before the term ends. If you want to roll over, we draft a new loan agreement at the prevailing rate and the capital plus interest stays deployed into the next project. If you want it back, we repay you on the agreed date.

How is the interest treated for tax?

Interest received from a private loan is typically taxable as savings income on your personal tax return, depending on your circumstances. We’re not tax advisers and don’t give personal tax advice. Speak to your accountant about how it fits with your other income.

What’s the difference between this and JV Finance?

Private funding is a fixed return loan. You lend capital, you get a defined annual rate, your capital comes back at the end. The return is the same whether the underlying project does brilliantly or breaks even.

JV Finance is a profit share. You fund a specific flip, we do the work, the profit is split 50/50 at the end. Higher potential return, more variability, different legal structure. JV Finance is restricted to sophisticated and high net worth individuals. Private funding has different requirements which we’ll explain on the call.

Capital is at risk. Returns aren’t guaranteed.

This is private lending to a company, not a deposit account. It is not protected by the Financial Services Compensation Scheme (FSCS). Your capital could be lost in part or in full if the company is unable to repay. The fixed rate represents our contractual obligation to you, not a guarantee. We’ll talk through these risks openly on the discovery call. Independent legal and financial advice is sensible before signing any agreement.

How This Compares

Private Funding vs JV Finance.

Both options put your capital to work in property. They’re built for different situations and different appetites.

This page Private Funding
JV Finance
Minimum capital
£20,000
£100,000
Return type
Fixed rate, paid as interest
Variable, 50% profit share
Typical term
12 month standard term
6 to 12 months per project
Asset ownership
No ownership, structured as a loan
You own the property outright
Your involvement
Fully passive, no involvement required
Optional site visits and input
Eligibility
Open to anyone with the funds
Sophisticated or high net worth only
Funding flexibility
Cash only
Cash or part funded via bridging
Best for
Predictable income. Lower minimum. Fully hands off.
Higher capital. Comfortable with variable returns. Wants the upside potential and direct ownership.
Ready to talk

Let’s see if it’s the right fit.

Book a 30 minute discovery call. We’ll learn about your situation, walk you through the numbers, and tell you honestly whether this makes sense for you. If it doesn’t, we’ll point you to something that does.