Converting Commercial Property To Residential: What would you do if you had just £20,000-£30,000 but wanted to invest in property in the South of England? My students, Bart and Patricia, bought a Bournemouth commercial property for just £81,000. They then turned it into a residential home using permitted development rights.
If you want to see the process of converting commercial property to residential without planning permission, please watch the full video until the end. You can find the video at the top of this article or via my YouTube channel. There are some real golden nuggets in this one, so make sure not to skip it!
As the high-street declines and the need for housing rises, converting commercial property to residential is becoming increasingly popular. What’s more, it is now easier than ever to do because you don’t always require planning permission, due to permitted development rights!
In this article, I will give you 3 lessons from Bart and Patricia’s commercial to residential case study! If you are a property investor thinking about doing a commercial to residential project, this article will provide insights that will help you to make the most of your investment!
I am on a mission to get property education into the hands of as many people as possible! However, I need your help to do it. Please consider sharing this article on your social media pages. Let’s get more people converting commercial property to residential, and help solve the housing crisis!
1. Converting Commercial Property To Residential: Buy, Refurbish, Refinance, Rent!
The Buy, Refurbish, Refinance, Rent (BRRR) strategy allows you to buy a property, do it up, and then receive your investment back in the form of a mortgage. This is done by increasing the value of the property significantly by doing high impact refurbishments, such as adding an additional bedroom.
When converting commercial property to residential, it is also possible to do the BRRR strategy! Bart and Patricia pulled all their money out of the deal when they refinanced onto a mortgage. This means they essentially have a free house (with mortgage payments covered by the rent)!
2. Converting Commercial Property To Residential: Personal Loans And Credit Cards!
Bart and Patricia bought the property using bridging finance and a personal loan. They then used credit cards to do the refurbishment. While this is a high-risk strategy, it paid off for them! This shows that even if you don’t have money, there is always a way forward!
While I am not recommending that you use your credit cards in this way, I am suggesting being inspired by the creativity. Don’t let anything hold you back from success!
3. Converting Commercial Property To Residential: Make It As Passive As Commercial Property!
When you rent out a commercial property, you can hand over maintenance of that property to the tenant. This makes commercial property much more passive, compared to residential. But what if you could have the passivity of commercial property with your residential portfolio?
Renting to a housing association or a social housing provider can offer you a passive income. The provider will take on the property for a period of years and maintain it for you. This allows you to collect a rental income without the hassle of dealing with tenants. This is something Bart and Patricia are considering doing with their property!
Converting Commercial Property To Residential And Other Property Strategies!
Do you want to learn more about converting commercial property to residential and other property strategies? 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!
