In this week's episode, Kevin will share with you the seven areas he will be focusing on to monetise in property throughout the coming year and areas where he feels all property investors should be looking at to make money throughout 2021 and beyond.  There are various areas you could be looking at to maximise your profits, from raising money to build up your portfolio, reaching out to other local businesses who may have struggled through the pandemic and conversions from one bed to two-bed flats and/or commercial to residential property.

KEY TAKEAWAYS

Converting 1 Bed Flat to 2 Bed Flats Throughout the Covid-19 pandemic there has been a drop in the value of one-bedroom flats in a lot of the major cities in the UK. The reason is simple, a lot of these properties are owned or rented by people who commute to work but live in another part of the country and these people may now be furloughed or working from home - the demand may no longer be there after Covid-19 if people lose jobs or continue to work from home. This could be the best time to purchase a larger one-bedroom flat and convert into a two-bedroom, you can add a really good margin in an uplift from a one-bedroom to a two.

 

Raising Money There will be a huge opportunity in 2021 for raising private finance to build your portfolios. People are trying to get their money out of the banking systems with low-interest rates and potentially negative interest.

 

Joint Ventures Some investors will want a joint venture and not just make an investment, ie a share of the pie. However, be careful. Make sure you’re only working with sophisticated investors and do your research on the FCA Regulations to make sure you stay compliant.

 

 

Buying Businesses Look to collaborate or go into joint ventures with other local businesses who may be struggling in the current climate. Also, you will be able to buy businesses for very little in 2021;  buying an existing business makes it easy to scale up in the coming years.

 

Creative Strategies Think about lease options, exchange with delayed completions, vendor finance. These opportunities will be massive in 2021 and onwards. Landlords will be looking to sell portfolios due to Section 24 as well as the impact of Covid.

Rent to Rent Where you control other people’s property on a rent to rent agreement but on a profit share basis, not guaranteed rent. The landlord gets the property taken care of and an income and you will make money from the profit with none of the downsides. This is a great way to scale a business and create cash flow.

 

Commercial Conversions There are empty commercial buildings all over the country at the moment and this creates a huge opportunity to convert these buildings to residential. However, don’t just think about commercial to residential conversions. What about commercial to a different commercial use? With the government relaxing laws around permitted development rights, there has never been a better time to purchase a commercial property for conversion to residential.

 

BEST MOMENTS

“Use the 3’ rule - everyone within 3’ of you, no matter where you are, needs to know that you are in property and that you are looking to do deals in property. “

“Not everybody is going to just want to lend money for an interest rate return, some will want a joint venture - a share of the pie”

“The biggest opportunity has come in the middle of Covid when the government announced a relaxation in the Permitted Development Rights”

“Keep an eye on all of the changes the Government are going to be making to try and incentivise developers”

 

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ABOUT THE HOST

Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.   

CONTACT METHOD

https://www.facebook.com/kevinMcDonnellProperty/

https://kevinmcdonnell.co.uk/

 

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