#152
How do you go about carrying out due diligence on a new UK Property business model?
How can you make sure you’re not believing the hype?
Do you presume that something must work because it’s what everyone else seems to be doing?
This episode (the 3rd of 4) will hopefully get you thinking about some of these things as we continue our story of why we didn’t add any properties to our portfolio in 2023.
The first reason, which we covered last week in #151 was because I found myself credit blacklisted due to an unfortunate set of circumstances.
This week, we document our research into a new UK property strategy for us: Aparthotels.
We discuss:
- Potential opportunities in refurbishing tired BNBs into apart hotels
- Researching Potential Locations for Aparthotels
- Lending Options for Aparthotel Investment
- Exploring options for commercial mortgages and short-term finance
- Challenges and complexities of securing lending for apart hotel investments
- Considerations for valuations, rental income, and loan-to-value ratios
- The importance of thorough research and due diligence in the lending process
- Building a Deal Analysis Spreadsheet
- Importance of accurate financial modeling and due diligence
- Need for a comprehensive deal analysis template
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Hong Kong: The Urban Bakery in the Landmark Building in Central on the first Saturday of each month from 11:30 am
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Keywords
due diligence, business model, hype, property investment, UK property, expat investors, commercial free space, off-plan developments, SA properties, housing market, licensing, apart hotels, commercial valuation, investment mortgage, short term finance, RICS surveyor, commercial property, brick and mortar valuation, lender options, property analysis, self check-in technology, hotel renovation, property management, building a spreadsheet, commercial yield, investment strategy, property market research, partnerships, deal analysis, property conversion
Here are some great episodes to start with.