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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/

kevin@propertysoldier.co.uk