How an investor converted a property he didn’t even own!
Start talking about office to residential conversions and people immediately envision a great big office building associated with mega costs to purchase and then convert to residential apartments. If you are starting out, this can be pretty scary! But how about a small commercial to residential conversion, done on a R2R basis as a starting point?
In his article in the October 2021 issue, Stephen Baxendale takes us through the process he has followed to secure such a deal. Even more impressive is that Steve has only just started investing in the UK (he’s part Aussie but we won’t hold that against him) and is quickly establishing himself as a bit of an expert on purchase lease options.
He has provided some excellent tips for anyone who wants to emulate what he has achieved so far:
Tip 1: If you need to invest remotely, don’t be afraid to partner with somebody because you may have skills that will be of benefit to the partnership. Think about finding a partner to work with and don’t let distance be an excuse.
Tip 2: Evaluate your tenant demographic and build the specification of the property around the tenant type. My tenants won’t pay more for an en-suite room as they are on a tight budget, so we give them what they can afford.
Tip 3: Don’t just rely on your own network. Have conversations with people and tap into their network to find out what they want and whether you can work together.
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