Shop To Residential Conversion: In a recent video, I toured a unique property investment in Uttoxeter! A former cake shop, bought for just £70,000, was transformed by my student, Dino, into a profitable residential home.
In the video, we cover everything from financing options, like bridging loans, to renovation costs. We also talk about the process of finding tenants, and the steps to boost property value. From getting a great deal on the property to complying with regulations, watch the full video until the end to see exactly how he did it. You can find the video at the top of this page or on my YouTube channel.
A lot of people have begun looking at commercial to residential conversions as a way to maximise their returns when investing in property. Commercial to residential conversions cover a broad range of properties, from offices to factories. One of those property types is retail shops. In this article, I will be focusing on the shop to residential conversion process by giving you 3 powerful tips on exactly how to do it.
Many property investors are looking for creative investment strategies beyond the standard buy-to-let model. If you found this article helpful, please consider adding value to your followers by sharing it on your social media pages.
1. Shop To Residential Conversion: Understand Permitted Development Rights
Because of changes to the planning laws, you can often do a shop to residential conversion without getting planning permission. This means that you will not need to go through a full planning process, but rather simply need to notify the local council about the conversion. Many people that are new to the world of property are unaware of this, therefore understanding this will give you an edge.
That said, however, this does not always apply, and local restrictions may be in place. Speak to property experts and your local council to find out what rules apply to the property you are interested in buying.
2. Shop To Residential Conversion: Make An Embarrassingly Low Offer
Dino bought the property for just £70,000. He says the key to doing that is to make an embarrassingly low offer. This is something I teach in my training. You need to get a property for a good price, because there can be unexpected surprises along the way that eat into your profits. If you have a good cushion in terms of potential profits, those surprises are easier to absorb.
One way to make cheeky offers, without damaging your relationship with estate agents, is to ask permission before booking a viewing. Say something like, “I am interested in [X property], but I would probably only be able to offer [X amount]. I don’t want to waste anyone’s time or offend anyone, do you still think it is worth me booking a viewing?” Their response will give you some indication of the seller's thought process.
3. Shop To Residential Conversion: Contacts Matter
Dino bought the property on bridging finance. Bridging finance is a higher interest loan which acts as a bridge between buying the property and getting a regular mortgage. This allows you to buy a property, refurbish it, and refinance it at the new value.
One problem people have doing this is that they buy property and then look for builders to do the work. Often, the good builders are all booked up, leaving the buyer on a high interest loan for longer.
Dino, as a member of my Academy, didn’t have those issues. Another Academy member hooked him up with his power team and the work was done quickly and to a high standard! That is the power of having a good network and industry contacts!
Shop To Residential Conversion: Training
Dino spoke about the importance of good training when doing his shop to residential conversion. If you want to learn about property yourself, why not learn from the best? Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
