Register your interest in Serviced Accommodation Discovery Day here, and a member of our team will get back to you to confirm your place at your preferred date.

 

 

Welcome to another episode of The Serviced Accommodation Property Podcast! In today’s episode, Kevin talks to Michael Primrose, a Commercial Finance Broker and Director/Founder of TPEFinance.

This is perfect for newbies out there who wants to get funding, raise finances to get their first serviced accommodation up and running in no time. Michael discusses the key things lenders are keen about, the bridge to let products, the development finances, choosing SA managing agents, how to get rent to SA funding and many more. So, make sure to click that play button and put those ear pods on to learn from the finance expert!

KEY TAKEAWAYS

• From standard buy to let to crowd-funding rent to rent. Michael does everything related to property.
• Objection for lenders
  • No experience of managing or owning SA.
  • Get the best SA business that you can and outsource. Get it systemized to increase your profits.
  • Lenders look at that. Bad reviews stop the lenders to lend you what you need.
• Bridge to let products
  • It’s a long-term bridging lane. 6-7% annum. What you pay per month is only 4-5%.
  • For first-time landlords.
  • There is no exit fee. They’re not paying hefty amounts. Arrangement fee is 2-2.5%.
  • A great product and it fits a niche.
• Development finance
  • People doing refurbs, conversions and even building SAs.
  • Normally, for a £400,000, your deposit will be £100,000. If you use development finance which covers 80-90% of your total cost (purchase and refurb), that £100,000 could cover a potential million end value.
• Leveraging serviced accommodation managing agents who you can partner with.
  • Partner with someone who is more experienced than you.
  • If you’ve got no experience in SA and given it to someone who’s reputable, lenders can take a lot them, track record, and reviews.
• Rent to SA funding
  • Equity crowd-funding. Set up a Special Purpose Vehicle (SPV). Sell shares in that SPV.
  • There are a lot of crowd-funding platforms you could use online.

BEST MOMENTS

• “What comes down to when they’re looking at the property is the fact that you can’t uplift the value of that property because it’s a flat, house or whatever. It’s the business that’s worth the money.”
• “If they look for conversion or new builds, there’s actually more profit to make.”

VALUABLE RESOURCES

• Progressive Property
• TPEFinance

ABOUT THE HOST

Kevin Poneskis, also known as the Property Soldier, has been a full-time property investor and mentor since 2011. This happened after he served the army for 24 years. He spent the majority of these years in the 29 Commando Regiment RA and finished his time in the army as a Regimental Sergeant Major. Even during his time in the army, Kevin was already building his property portfolio and educating himself everything about real estate investments.

Right now, he is writing his book Property Soldier, in which 100% of the profit from the book will go to homeless veterans, and hosting The Serviced Accommodation Podcast which educates people who want to explore and earn from serviced accommodation property investing.

ABOUT THE GUEST

Michael Primrose is the Director and Founder of TPEFinance. Its purpose is to help developers and investors raise finance for their projects. Their experts help you from the very start through the end of the project and promise the biggest profit from a very little amount that you’ve put in the deal.

CONTACT METHOD

Michael Primrose

• Michael’s Facebook
• Michael’s contact number: 07951802602
• Email Michael at [email protected]

Kevin Poneskis

• Kevin’s Facebook
• Kevin’s LinkedIn