In this episode, we hear from Kiran Patel, the MD of Venture Finance who is a chartered accountant and broker that has worked on all kinds of property projects. Including HMOs, Buy-to-let, property flips, serviced accommodation, and commercial property. Helping clients to finance and leverage their acquisitions and portfolios.

He explains how to get commercial property properly valued. More importantly – how to get it financed at a decent rate. For this episode, Kiran focuses on how to do this for a commercial property that is going to be used for serviced accommodation. Using several examples, during the podcast. As well as explaining how to choose a good broker.

KEY TAKEAWAYS

• Bridging loans can be used to purchase properties that are categorized as unmortgageable e.g., ones with structural problems.
• Most people will qualify for bridging finance.
• Bridging or development finance is expensive. So, you need to have a robust exit plan in place.
• For a new property development model gain experience through a JV before doing one yourself. This will make you more attractive to lenders.
• Find a broker before searching for a deal. That way, you can move fast, before the opportunity disappears.
• It is usually possible to get 75% value to mortgage and 100% works and fees financing.
• Be prepared. In the podcast, Kiran lists out what information your broker will need.
• Use a broker that invests in property themselves and is recommended by other investors.
• The capital value per unit (room) is one of the key metrics for SA property finance. Kiran covers the other valuation elements and does so in great detail.
• With SA, lenders look at supply and demand in the area and what makes your property different from what is already available.
• If you are leasing out ground floor units to businesses, frequently having a national brand as a tenant is best.
• Always get a valuer to evaluate what your block will be worth in the end. Do your due diligence.

BEST MOMENTS

‘We personally use the commercial finance that we provide for our clients.’

‘Always prepare a project appraisal and or a business plan for the deal.’

‘You are never going to know how a valuer is going to value something, but it is good to understand the process.’

‘Just pay for a risk valuer to go out…it’s just the cost of due diligence.’

VALUABLE RESOURCES

Discovery Day Sign Up Page - https://progressivepropertyreferral.com/serviced-accommodation-discovery-day/amb0676

The Serviced Accommodation Property Podcast - https://itunes.apple.com/gb/podcast/the-serviced-accommodation-property-podcast/id1436005279?mt=2

https://propertysoldier.co.uk/
Serviced Accommodation Success by Kevin Poneskis
Rich Dad, Poor Dad by Robert T Kiyosaki

GUEST RESOURCES

Website: https://www.venturefinanceuk.com
Email: Kiran@venturefinanceuk.com
Facebook: https://www.facebook.com/venturefinance.propertyfinance/
LinkedIn: https://www.linkedin.com/company/venture-finance

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/
kevin@propertysoldier.co.uk