PICA Property

Property Investor's Coaching Academy (PICA)

Giving you the tools and knowledge to successfully invest
in the UK property market

Over 36 years of property investing experience!

Commercial to Residential Course

This is a REAL example of a Commercial-to-Residential deal done with NONE of the investor's own money!

A colleague found an office block in Birmingham standing empty. In fact, it had been empty for two years. He negotiated with the owner, and took control with a five year Lease Option at a yearly rent of just £13,000 (the cost of the rates/council tax). He had an option to buy at any time during the five years at a purchase price of £300,000.

He converted the building into 20 studios at a cost of £200,000. Now don’t panic at this point – you don’t have to have that kind of money yourself. You can use commercial bridging or JV finance. This guy used JV finance. You could consider attending my courses to learn how to do that. 

When fully let, the annual rental income was £100,000. Now, surveyors apply a multiple to the annual rent to determine a building’s value. The multiple varies depending on the area, but in this case it is around x8, so that valued the building at £800,000

Annual rental……………………………£13,000 x 5

Conversion……………………………… £200,000

Purchase price…………………………..£300,000

Value when let……………….……..… £800,000.

He then mortgaged the building and took out 70% of the value in cash – £560,000.

Less his costs of £565,000 left cash left in of just £5000.

These figures don’t take into account costs such as architects or solicitors fees etc., but bear in mind that he doesn’t have to pay the purchase price of £300,000 until the five years are up, which means he has the cash available for other deals.

He also has a property with £240,000 of equity, and his conversion took 2 years, so his rental income within that 5 year period was £300,000, plus no voids, maintenance or management costs!

You can do these kind of deals too!

There is no doubt that the Commercial to Residential strategy can produce huge profits, and, done right, is a complete hands-off investment. On our course we teach you everything you need to know, including how to acquire the property without actually buying it, and raising the capital to complete it. This is a no-money strategy!

If you’d like to attend our course, simply fill in the form below and we will contact you, or you can go ahead and register and pay now using the button below and we will contact you to arrange a mutually convenient date. The course fee is £497 and you will receive a thorough grounding in everything you need to know about the Commercial to Residential strategy.

Buy Now - £497.00

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