#153

Adopting a new UK property strategy is no walk in the park because you need to understand and control as many of the variables you can identify as possible.

This is even more important if you’re using investor finance, because you need to have a plan A, Plan B and Plan C for giving your investors the return OF their money and ON their money. 

In this episode, we talk you through the due diligence we undertook when looking into adopting a new business model: Aparthotels.

Our model model focused on buying tired guest houses or hotels, refurbishing to increase revenue, and applying for a commercial mortgage, using the uplift in value to pay back our investors.

We discuss:

• the importance of understanding lending, property valuation, and factors affecting short-term and long-term financing.
• The process of researching potential deals, adapting floor plans, and obtaining build quotes.
• How to break down the estimation of income, refurbishment costs, interest rates, VAT, and gross revenue, along with the impact on cash flow and profitability. 
• The impact of factors such as occupancy rates, interest rates, and valuations on the financial feasibility of the new business model.
• How to detail the process of evaluating and analyzing the potential risks associated with the new business model, including considering various what-if scenarios. 
• The importance of considering risk, trust, and investor comfort during decision-making.

This episode will give you a glimpse not only into the types and extent of due diligence required when researching a new approach, but will also give you pause for thought as to whether to adopt a new model or rinse and repeat the one you already have.

We typically work with time poor professionals get a good return on their money by investing with us. To schedule a call to discuss

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Keywords

UK property strategy, investor finance, due diligence, business model, apart hotels, commercial mortgage, refurbishing, stock, mortgage brokers, lending, financing, valuation, floor plans, builders, property viewing, income estimation, occupancy rates, daily room rates, short term lets, holiday lets, serviced accommodation, room rates, risk appetite, cash flow, interest rates, HMOs, Article 4, property tour, stock availability, young professionals, legals