All posts by Steve

Question of the Week – B&B to Flats

This weeks question comes from Nick, who sourced this potential deal to discuss with Glenn.

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Auction Development

This weeks question of the week comes from Sam & Cindy, who are trying to secure a property before the auction with potential for 15 flats.

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – High End Apartments

This weeks question comes from Ian, who has been working with Glenn for a number of years. 

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Conversion to HMO and Commercial Valuation

This week’s question comes from Sue, who found a property with the potential to turn into an HMO.

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Flip vs Auction

This week ‘s question comes from Andy, who found a property that looked like a straightforward flip.

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Property Conversion

This week’s question comes from Beauty, who found a property with the potential to convert into 3 flats. 

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Jack’s Plot

This week’s question comes from Jack, who’s due diligence lead him to this plot.

To listen to the question that was asked live on the webinar, click the play button below.

 

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Gurdev’s Plot

This weeks question of the week comes for Gurdev, who came across a plot with a block of 6 garages on it. Gurdev then goes on to tell Glenn the numbers on the deal.

It’s been on for 6 months, asking price is £150,000 and already has planning for a block of 6 flats. GDV (Gross Development Value) is going to be in the region of £450,000 – £540,000.

Glenn asks what the price per square foot will be once the flats have been completed, to which the answer is £140 – £150. However, as it costs between £100 – £110 per square foot to build there doesn’t seem to be enough margin in the deal. Glenn went on to say he wouldn’t get involved in building anything in areas less than £300 pr sq ft, as I’d probably sell it off as planning gain.

Glenn went on to mention that for areas that are under £300 per sq ft, you’ll find that the value of the plot will be around 20-25% of the overall GDV. So Gurdev’s plot should be valued around £70,000 – £80,000 to be viable, to which Gurdev calculated it to be around £100,000.

As the property has been on the market for 6 months, Glenn states that it will stick around because mathematically it doesn’t work at £140 per sq ft, it doesn’t justify building it.

Glenn then went on to say that Gurdev can go back to the agent and offer them a set figure and just go through what the associated costs of building it would be, so it gets them to face reality. In addition you can then tell them you are willing to put an over-ridge clause in the contract to give them more in the back end if you sell the flats for a certain price and your profit is more than “x”.

To listen to the question that was asked live on the webinar, click the play button below.

I’m sure this isn’t over yet and Gurdev will update us on one of our next webinars.

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.

Question of the Week – Caroline’s Development Deal

This weeks question of the week comes from Caroline, who found a flipping deal whilst searching for property in their area with the potential for residential developments into flats.

The property is in an old and dilapidated condition, however this can be used to alter the potential offer price. The property is on for £210,000 but Caroline will offer £180,000.

The end goal is to transform the property into 3 flats, 2x single bed flats and 1x 2 bed flat. As the single bed flats would achieve £100,000 each and the 2 bed flat would achieve £120,000, creating a total of £320,000.

Before he worked out the numbers, Glenn advised Caroline to check with the local council to see what their rules are with parking and apartments, to which Caroline has already checked out and wouldn’t be an issue as the property has on street parking already reserved.

Glenn asked for the numbers on the property and then workout out the proposal on the development project. With development on flats, it’s safe to allocate £30,000 per flat, to cover all the associated costs such as architects fees, property planning fees, splitting services and so on.

Therefore the purchase price of £180,000 and three flats at £30,000 each, the total comes to £270,000. Which leaves £50,000 minus the buy & sell costs and funding costs.

With the buy and sell costs being around £22,000 and still having to pay the funding costs of anywhere between 1% – 2% per month, unfortunately this deal didn’t stack up.

Although this deal didn’t make it, there are still many out there waiting to be found.

If you want to learn how to make money from property development in the UK residential property market, you need to attend Glenn’s 4 Day Intensive Training where you will gain in depth knowledge for investing in UK property. Click here to find out more. Or email melanie@glennarmstrong.com to book onto one of our 4 Day courses.