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.
In this episode, Kevin explains why converting a guest house into self-catering accommodation is so lucrative. He shares details of how anyone that is interested in running an SA business can use this model.
Including in-depth tips that will help you to get past typical hurdles and not make common mistakes. For example, why macerating toilets are not a good idea for this type of project and how to choose a surveyor that will provide the valuation you need. He also covers finance, maximising tax savings, due diligence, and much, much more.
KEY TAKEAWAYS
Developing an existing guest house into an Apart Hotel for self-caterers is an exciting SA opportunity.
It is a great way to increase the earning capacity of existing businesses.
Increasingly people prefer self-catering apartments to hotel or B&B rooms. Demand is huge.
Many B&B owners are trapped in their businesses, so are keen to sell.
This type of commercial property can potentially be valued on its earnings before interest, tax, depreciation, amortisation, or EBITDA. Kevin provides more details in the podcast.
Capital allowances can only be claimed once in a building’s lifetime. This needs to be considered as part of the purchase.
It is possible to get a significant % of the purchase cost back out when using this SA business model.
Even if you are buying with cash, get a survey done.
Use a conveyancing solicitor that has experience in dealing with this type of property.
Never assume that a property that is currently a guest house is trading legally.
Make sure that the seller is willing to let you claim the capital allowances. Kevin explains why.
Lease options are a highly effective way to fund these deals. They can be made attractive to sellers too.
Get a DIP to make it easier to obtain your loan.
Make sure that your option to buy is long enough to cover bank and financing delays.
BEST MOMENTS
‘Section four acquisition guest house B&B conversion is one of the most exciting acquisition strategies’
‘Ensure that both planning and building control are happy with the alterations of the property.’
‘Use a commercial surveyor who is on the recognised panel for the lender that you intend to use for your loan’
‘People often say that property investment training is expensive. But I know that ignorance is expensive.’
VALUABLE RESOURCES
The Serviced Accommodation Property Podcast
https://propertysoldier.co.uk/
Rich Dad, Poor Dad by Robert T Kiyosaki
Serviced Accommodation Success by Kevin Poneskis
ABOUT THE HOST
Your host Kevin Poneskis enjoys public speaking, travelling, exercising, and keeping fit. He also enjoys working with a charity called STOLL which provides accommodation and training for homeless veterans.
Kevin was in the British Army serving 24 years, mostly in a Commando unit, and retired at the rank of Regimental Sergeant Major. He left the Army in 2011 and became a full-time property investor. During most of his Army career, Kevin was investing in property and has been a property investor now for over 27 years.
CONTACT METHOD
https://en-gb.facebook.com/propertysoldier/
[email protected]
