DevDosh Ltd Frequently Asked Questions

DevDosh Ltd is a company that does 2 things. We run a fixed income investment product and we provide property development finance to property developers.

We do this by lending investors capital to property developers in the form of 1st charge real estate development mortgages. We charge the property developer 15% interest a year. We give the investor 10% interest a year and we use the other 5% to cover our management fee.

DevDosh Ltd can be an investment house and a lender in the same way that any bank or building society can.

They take customer funds on deposit and they use those funds in various ways to generate income. The main difference is that the banks keep the lions share of the income for themselves and we give the lions share to our investors.

DevDosh Ltd is a private limited company owned by Mike Galloway. You can read more about Mike on our About page and on his LinkedIn profile.

Mike Galloway is a financial professional that has spent the majority of his career in offshore wealth management based in the APAC region. He identified the DevDosh Ltd business model in 2016 when on holiday in the UK and has waited patiently for some Brexit respite (and now COVID delays) to enable the launch of the product.

DevDosh Ltd has submitted dormant accounts from 2016-2020 because it has not engaged in commercial practice. Mike Galloway has funded all research and development activity directly and so no accounts have been necessary.

DevDosh Ltd’s dormant status will be broken with the submission of an SH01 share capital form as the company is capitlaised prior to hard launch.

DevDosh Ltd is a UK company based in London, UK. DevDosh Ltd also has a representative office in Bali, Indonesia.

You are more than welcome to visit us by appointment. 

The London office is most conveneient for EMEA visitors
The Bali office is most conveneient for APAC visitors

DevDosh Ltd has an office in Bali because Mike Galloway is semi-retired and spends a sizable portion of his time there. The Bali office will serve clients from the APAC region.

Before Mike semi-retired to Bali he was actively working in offshore wealth management based in Jakarta (around 2017). During that time he employed telephone researchers and a blog writer for DevDosh Ltd.

Devdas is a Bengali romance novel written by Sarat Chandra Chatterjee and published in 1917. Movies of the same name were released in 1935 and 2002.

We haven’t watched the movies or read the book yet but presume both must be great as they are searched on Google so much the search engine likes to double check users are searching for a fantastic investment product/property development finance and not the aforementioned book or movie.

Firstly read the statutory declaration and suitability page. If you are suitable to invest with DevDosh Ltd then fill in and return the Investor Declaration of Suitability and that will enable us to send you an investment Information Memorandum.

After that it is as simple as deciding what level of investment you would like to get involved at and completing the letter of intent included with your Information Memorandum.

DevDosh Ltd will then issues your shares in the SPV on an unpaid basis and put you in touch with the third party regulated commercial escrow agent to help you to fund your account.

Of course we are on hand every step of the way to guide you through the process.

A fixed income investment is a type of investment that pays the investor a fixed rate of interest at fixed dates until the investment matures. At the maturity of the investment the principal sum is returned to the investor.

Fixed income investments are normally debt investments and include Gilts, corporate bonds, money markets, various fixed income/debt funds.

A 1st charge mortgage is the most senior debt charge that can be taken on property. It is the primary lien and has to be paid before any other debt from the proceeds of the sale of the property.

A 1st charge real estate development mortgage is a mortgage made available to a property developer to be used for the purpose of financing the construction of a building/buildings. The 1st charge is taken over the land/development rights/structures. Should the property developer default on payment or fail to meet their contractual obligations then, like any mortgage, the land and property will be possessed and disposed of to pay off the mortgage and interest.

DevDosh Ltd have a minimum equity level of 30% per loan.

If a full 30% is not available in the property scheme we will accept 20% equity in land/development rights/structures and 10% from other collateral.

This means that every 1st charge real estate development mortgage DevDosh Ltd issues is 30% asset backed for the security of our investors.

We take Risk Management very seriously. DevDosh Ltd have multiple risk assessment and reduction processes in place. The best way to get a solid overview of these is to read the following pages on our website.

Protections
Risk Management
Generic Risk
Security

The finance industry has many areas of conflict of interest. DevDosh Ltd is avoiding these areas by outsourcing key roles to professional 3rd party service providers. For deeper insight into conflict of interest within the financial sector please review our Service Partner page.

The short answer is that we do not need to be. DevDosh Ltd provide a product and not financial advice. You can find out more details about this on our FCA and Suitability pages.

Unless you are in the top tier of property developers and very good friends with institutional lenders 1st charge real estate development mortgage interest rates start at 1% per month (12% annual). Our interest charge is 1.25% per month (15% per annum) which is within an acceptable market range and enables us to pay our investors 10%.

We don’t need to charge investors fees because all costs are covered by the legal and arrangement fees that the property developers pay.

There are plenty of companies that offer a fixed income investment products and then lend money to property developers. They fall into 2 categories.

Firstly there are open/closed ended funds. We do not agree with this business model because they do not pay a fair percentage of the profit to the investors, they charge the investors fees and they have a business model which promotes conflict of interest.

Secondly there are mini-bond and loan note type investment products. We do not agree with these business models as they promote a typically unsustainable business model, poor underwriting practices and promote conflicts of interest.

The reason why DevDosh Ltd are the first to champion our particular business model is because we believe in fair play and seek to make money with our investors and not from them.

We only accept investment capital when we have a 1st charge real estate development mortgage to apply it too. Open/closed ended funds on the other hand will accept capital and then put it on ice until they can deploy it. This means that they are under constant pressure to deploy capital so they do not lose money paying investors interest on money which they are not actively using.

The 12 month FCA mini bond marketing ban was announced in November 2019 and came into force in January 2020. DevDosh Ltd was incorporated in 2016 and has a long history of stated purpose prior to November 2019 on social media.

While it is true that DevDosh Ltd could sell mini bonds to the same category of investor that we will make our fixed income product available to we do not like the mini bond business model.

The way we have constructed our fixed income product provides the investor with a lot more certainty, security, protection and tax efficiency.

DevDosh Ltd charge 15% interest. 10% goes to our investors and we keep 5% as a management  fees.

You can repay your loan early. Early repayment does not represent a financial benefit to you as the structure of the loan is full term retained interest.

Houses, penthouses, flats, mixed use and exceptional commercial.

First time developers will be considered as long as they have an experienced team.

All key team members will need to provide an overview of their expertise for discovery during due dilligence.

As long as you have no missed payments in the last 12 months and no CCJ’s over £1000 in the last 3 years we will consider your application.

The amount you can borrow will depend on your development scheme.

The amount we will lend varies depending on the following multiples;

• Profit on cost
• Loan to GDV
• Loan to value
• Loan to cost 

Minimum and maximum loan limits are £500,000 – £5,000,000

DevDosh Ltd are a boutique lender and aim to deliver a limited number of high quality loans and investments each year. Loans above £5,000,000 do not fit our business model.

The retained interest model protects our investors and secures their yield for the entire term from the first day of the loan.