Issue 31 Tom Sumner's Story

NOVEMBER/DECEMBER 2024 – ISSUE 31 – PRICE £12.95

THE PROPERTY INVESTOR MAGAZINE

MULTI-AWARD WINNER OUR EXCLUSIVE CASE STUDY OF THE PROJECT THAT HELPED MARIAM BECOME A MULTI-AWARD WINNER AT THE PROPERTY INVESTOR AWARDS

TOM SUMNER’S STORY: LESSONS FROM THE FRONT LINE HOW A BULLETPROOF MILITARY MINDSET AND STRATEGIC THINKING BOOST PROFITS AND MITIGATE RISK

LOUISE WYNNE - COLOUR PSYCHOLOGY IN INTERIOR DESIGN RACHEL KNIGHT - DISSECTING THE TITLE SPLIT STRATEGY SCOTT WILLIAMS - BUILDING YOUR ‘POWER TEAM’

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CONTENTS

ISSUE 31 | NOVEMBER/DECEMBER 2024

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Colour Psychology in Interior Design

Lessons From the Front Line

Louise shares her insights on color psychology and how leveraging it can enhance rental appeal, boost sales, and maximise returns from investing in property.

Tom Sumner shares his journey from military service to becoming a successful property investor. Drawing on lessons from the military, he explains how discipline, strategic thinking, and resilience shape his approach to property investment.

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Stay ahead with the latest market updates and industry news.

Simon Smith challenges the perception of Rent-to-Rent (R2R) as a strategy limited to beginners, By controlling assets without owning them, R2R allows investors to profitably manage properties, reinvesting the proceeds into long-term asset acquisition. Simon highlights R2R’s scalability, its application in high-level investment models, and offers actionable steps for those looking to get started or enhance their portfolios.

The Market Pulse

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Spend Less Time on Viewings: How to Analyse Commercial Conversions and Calculate Costs from the Comfort of Your Home

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Three of my Favourite HMO Community Case Studies

Andy has curated numerous case studies highlighting successful HMO transformations across his community, helping investors learn from real-life examples of property conversions, creative solutions, and impressive returns.

Anthony Boyce shares his strategies for efficiently analysing commercial conversion deals, focusing on cost per square foot, area research, and leveraging permitted development rights to save time and maximise returns.

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Anti-Money Laundering in UK Property

Bushra highlights the importance of AML compliance in the UK property market, outlining key regulations, the roles of solicitors and lenders, and steps to prevent money laundering risks in property transactions.

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Overage Sourcing: How to Sell Problem Properties for Multi-Five-Figure Sums

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Case Study From Accidental Landlord at 20 to Purchasing a £96,000 Commercial Property and Increasing Its Value to £425,000 Amidst Legal Challenges Mariam Radi turned a £96,000 run-down salon into a £425,000 luxury flat through creative problem-solving and persistence.

Overcoming legal challenges, she secured both a 14-bed HMO and adjacent salon, increasing their value significantly and generating strong rental income.

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Paul introduces overage sourcing, a property sourcing strategy where sourcers act on behalf of vendors, earning higher commissions upon completion. It explains the process, highlights its profitability through real-life examples, and offers tips on building investor relationships for success.

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How to Add 25%-35% to Your Property Value with Title Splitting

Rachel Knight, a leading expert on title splitting, reveals how investors can unlock substantial profits by splitting multi-unit freehold blocks (MUFBs) into individual leasehold apartments. This strategy adds 25-35% capital value and offers new mortgage opportunities, making it a lucrative option for enhancing equity and cash flow in 2024.

Why Rent-to-Rent Isn’t Just for Newbies

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Myth Busting: Six Compliance Myths Investors and Sourcers NEED to Know to Protect Their Capital Tina Walsh addresses six myths about compliance in property sourcing and deal packaging, emphasising the critical need for adherence to legal and regulatory frameworks.

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Leaving the 9-5: How a Corporate Career Can Set You Up for Success as a Property Investor Patricia used her corporate skills to kickstart her journey into commercial property investment.

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B-Hive Living: How a Relentless Focus on Customer Experience and Tenant Wellbeing Can Turbocharge Your Property Success B-Hive Living (a multi-award-winning co-living operator) is revolutionizing the rental market by prioritizing with a focus on sustainability, and connected living spaces.

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Building Your ‘Power Team’

Scott explains how building a successful property ‘power team’ is essential for any development or investment project. Choosing the right people requires due diligence, strong references, and compatibility between team members.

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EDITOR’S FOREWORD W

riting this piece, I wasn’t sure which direction to go in. Do I talk about this year’s successes, like The Blue Bricks Awards and our Pigeons in Property event? Do I discuss the current economic climate in the UK? No. Instead, I think I’ll do something more important: remind you to take time to reflect on your own journey.

As this year closes, you will undoubtedly see a range of social media posts from people touting their success, full of achievements, and claiming that next year will be bigger and brighter.

For these people, I am happy for them, and I count myself in the bracket of having had a good year (though it has certainly not been without a fair share of stress or the occasional problem).

But what I want to highlight is that social media rarely reflects reality.

For every person posting a success, there are ten who are staying quiet about a difficult time they’ve been through. Out of those showcasing success, few will talk about the trials they had to overcome to achieve it.

I don’t know what your 2024 has looked like, but what I will say is that you have probably grown more than you realise.

So, please, take a moment to reflect on this year. Look at how you have grown, and take time to re-appreciate any wins, whether that’s a growing property portfolio, business, or just the progression of a difficult deal. If nothing else, celebrate the fact that you are here, reading something educational that will help you take 2025 by storm!

Sam Cooke

Editor of Blue Bricks Magazine

Getting Ready for 2025 This is a bumper edition of Blue Bricks Magazine, packed with exciting topics, case studies, and inspirational stories to get you ready for the year ahead.

A personal all-time favourite article of mine is the front-cover feature

by Tom Sumner. Tom’s article is the definition of inspiration, detailing the story of someone who’s overcome unbelievable amounts of hardship to build a successful, growing property business.

It’s also a very useful article, showcasing how combining strategies creatively can help you find and create highly profitable deals.

Rachel Knight has written a detailed article on the Title Splitting strategy and how it can be effectively used to increase the profitability of your property deals.

These are alongside advice sections covering topics like building your power team by Scott Williams and interior design tips by Louise Wynne.

All of this is perfectly topped off with excellent case studies by The HMO Roadmap and Mariam Radi.

As always, I hope you enjoy the read. If you’d like to feature in 2025, email hi@bluebricksmagazine.com to chat with one of the team.

Here’s a few photos from our most recent event, Pigeons in Property

Have a great Christmas and a Happy New Year. I look forward to writing to you again in 2025!

Disclaimer Blue Bricks Magazine Ltd is not authorised or regulated to provide financial advice and is not regulated by the Financial Conduct Authority. The contents of the articles and publications do not constitute financial, legal or regulatory advice. The contents of the articles and publications are in the words of the author and do not necessarily represent the views or opinions of Blue Bricks Magazine Ltd. Blue Bricks Magazine Ltd accept no responsibility for the accuracy of the advice or information contained in the publications. Readers should always ensure that they take independent financial, legal, tax and accountancy advice before considering any property investment or any other investment. Please note that the articles are general guidance or information only and a readers personal circumstances may impact the availability of products or services or the advice which would be given in a readers individual circumstances.

MEET THE COLUMNISTS

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Patricia McIntosh After a long corporate career, Patricia decided to pursue freedom by transitioning to full-time property investing. With extensive experience as an investor, she currently deals with block management and invests in both commercial and residential properties.

Anthony Boyce

Simon Smith

Anthony Boyce: Anthony is an experienced Architectural Technologist with a passion for property.

He’s an investor involved in buy-to-lets (BTLs), houses in multiple occupation (HMOs), developments, and serviced accommodation (SA) units, predominantly in the Northeast of England. Anthony is also co-founder of The Property Thing monthly property networking event and owner of 81 North Design.

Previously working full-time in the music industry, Simon felt this form of income was unpredictable. After discovering the world of HMOs through a friend, he decided to diversify his income streams. In just three short years, Simon has now built his £1,000,000-plus turnover property business and £2,500,000 owned portfolio funded through rent-to-rent cashflow!

Andy Graham

Scott Williams

Andy is a seasoned HMO property investor and serial entrepreneur with extensive experience across the UK since 2009. He has built multi-million-pound property portfolios, founded and exited a successful investment and management agency, and established ‘The HMO Community©’ and ‘The HMO Roadmap,’ the UK’s most extensive online HMO training platform.

Scott is a property investor who started his career as an apprentice working for a property developer. His most recent venture, The Property Developer Show, is a show dedicated to budding and experienced property developers. The first of its kind, these events have amassed huge success, attracting hundreds of people at a time.

Bushra Mohammed

Tina Walsh

Bushra is a practising property solicitor who offers no-nonsense auction legal packs to time-poor clients or those lacking the necessary insight to make informed decisions. Alongside this, she runs her own property development business in the Southeast and has operated as a landlord for the last 15 years.

Tina developed a passion for law during her time as a police officer. So, when she moved into property sourcing, she was surprised at how unregulated the sector was. Tina has since made it her mission to raise standards for property sourcers and protect property investors from rogue agents

Louise Wynne

Williams Johnson & Silvia Grattieri

As a high-demand interior designer, Louise leverages colour and pattern to boost property investors’ returns quickly. She collaborates with major housebuilders on showhome interiors and educates independent investors on design’s financial benefits. Louise writes for industry publications and speaks at property networking events, highlighting the vital role of colour in maximising returns.

Williams and Silvia are the co-founders of B-Hive Living – a multi-award-winning brand, operator, and asset manager of coliving properties in the UK. They take pride in delivering exceptional value to investors and partners through their strong focus on wellness-driven design, community experiences, and tech-enabled operations.

Mariam Radi

Tom Sumner

Mariam is an accidental landlord turned talented property investor and developer. She invests in London and has experience working as a paralegal at a law firm.

Tom is an established property investor, developer, and mentor who started his career in the military before eventually transitioning to being a full-time investor. One of the property businesses that Tom owns is a luxury serviced accommodation brand, Swish Holiday Apartments, which was featured on the front cover of the last issue of Blue Bricks Magazine.

Paul Stapleton

Rachel Knight

Paul is a successful entrepreneur with businesses including Casita Properties, Training Made Simple Academy, and Peak Performance Events. Over the past 8 years, Paul has honed his skills in various creative property strategies, including assisted sales, fractional sales, title splits, option agreements, and planning gains, to name a few.

Rachel Knight is the foremost expert in Title Splitting in the UK today. Her company, Titlesplit.com, is helping investors learn how to split commercial property, apartment blocks, and land.

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THE MARKET PULSE KEEPING A FINGER ON THE PULSE OF THE PROPERTY MARKET

BUDGET PUTS ‘SPANNER IN WORKS’ FOR PROPERTY MARKET More properties are coming onto the market, but mortgage interest rates aren’t going down. As such, prices aren’t expected to rise by much over the coming months. It’s a different story with rental properties, though, with rents continuing to escalate and, in many cases, becoming unaffordable for tenants.

Mortgage Rates Remaining Higher

House Prices Continue to Rise According to Halifax Bank, the cost of your typical UK property is now sitting at £293,999. That’s the most expensive figure to date and the fourth monthly rise in a row. Between September and October this year, bricks and mortar jumped 0.2%.

Prices are expected to increase over the next few months, thanks to a Lenders haven’t passed on the 0.25% lowering of the base rate to rush to buy before the Stamp Duty reverts to ‘normal’ in April. mortgage interest rates, it appears, but not as deals in the middle of November show, anyway.

Upmarket estate agent Hamptons argues that No, instead of mortgage rates dropping, many the rise in prices isn’t expected to be major, PRICES ARE EXPECTED TO have gone up instead. Leading high street thanks to the fact that mortgage interest rates INCREASE OVER THE NEXT lenders, such as NatWest and Barclays, are likely to stay above 3% over the next couple FEW MONTHS, THANKS TO A are amongst the most conspicuous. To the extent, of years, proving too expensive for many buyers.

RUSH TO BUY BEFORE THE a typical two-year fixed deal is now sitting at Added to this, the increased tax announcements STAMP DUTY REVERTS TO around 5.5%, while you can expect to pay in Rachel Reeves’s budget are also expected to approximately 5.22% for a five-year fixed rate. quell property prices. Hamptons had originally ‘NORMAL’ IN APRIL. predicted growth in 2026 to be around 5% but Admittedly, variable and tracker mortgage have since reduced this to 3.5%. holders will have benefited from the lowered Base Rate, but that’s a very small number of the population. Analysts reckon around eight New Buyer Inquiries on The Up out of ten people in the UK have fixed-rate products and will be looking to remortgage within the next two to three years.

The number of people enquiring about homes has increased, says the Royal Institute of Chartered Surveyors (RICS). At the same time, more The reason mortgage deals haven’t dropped is that many lenders had than 9% of surveyors report an increase in sales. A spokesman for already cut their rates prior to the Bank of England’s much-anticipated RICS described the rise as ‘modest’ but heading in the right direction.

Base Rate lowering by 0.25%, from 5% to 4.75%. Then there was the recent budget. That caused lenders to be more cautious with rates Rents Still Increasing Yet Becoming Unaffordable for Many and expect that future Base Rate cuts will be far slower to come through than previously believed.

The latest UK rental report from the Office for National Statistics states that the average rent had risen by 8.4% in September, compared Borrowers can be optimistic, though, that life will be pretty stable in to the same time the previous year. the long term, with no rapid rate spikes expected any time soon.

The biggest regional rise was in Northern Ireland, with a 9.5% jump, although London rents, too, rose by 9.8%. The lowest was in Scotland at 7.2%. Rents were up an average of 8.5% in England and 8.3% in Wales.

Zoopla’s October House Price Index shows that 12% of homes listed for sale on its portal were from landlords selling off rental properties.

Most of these were in London.

The average price of a former rented property is £307,000—16% lower than the typical UK asking price of £365,000. The lower costs of landlord properties and slightly better mortgage interest rates are allowing first-time buyers to benefit. Many first-time buyers can’t afford the increased rents caused by under-supply, making buying more attractive.

The number of mortgages accepted grew at the start of spring from 44,100 to 52,000

In fact, first-time buyers account for 36% of all property sales, according to Zoopla. Existing homeowners remortgaging make up 31% of the market, while 27% of the share is attributed to cash buyers.

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COLOUR PSYCHOLOGY IN INTERIOR DESIGN HOW TO INCREASE YOUR RENTAL AND SALES VALUES AS A PROPERTY INVESTOR

For property developers looking to maximise the appeal of their rental properties (and properties for sale), understanding and leveraging colour psychology can be a game-changer.

Sceptical? Read on, and I promise to enlighten you. If nothing else, you’ll discover why reaching for the grey paint pot could have a negative impact on your bottom line.

The Science Behind Colour and Emotion

Louise Wynne

Owner of Wildkind Interiors

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olour is more than a visual element in interior design; it’s a powerful tool that shapes how people feel, think, and ultimately behave within a space.

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“So, colour is emotion, is it? What a load of mumbo jumbo,” you might be thinking! I get it—it does sound like something an overly enthusiastic interior designer might say to encourage you to ditch the magnolia and be a little bolder.

Well, yes it is! And here’s why it’s so…

Colour impacts emotion through a connection in the brain. When wavelengths of light hit

our eyes, they send signals to the brain. And (this is where it gets really interesting) those signals are sent to a part of the brain called the hypothalamus, which is responsible for regulating—yes, you guessed it—emotion.

This direct connection between colour perception and emotional processing explains why different hues (pure colours) can evoke such strong and immediate feelings. But that’s not all! When we feel something, it influences how we behave, so you, as an investor, can influence how your buyers, guests, or tenants behave in a space. Wow, the power really is in your hands!

You want them to feel goooooood when they walk through that door. Feeling good means they’re more likely to buy, more likely to enjoy staying, and more likely to spend. And colour used correctly will absolutely help you achieve that!

bluebricksmagazine.com The Autumn Personality Characteristics: Warm, muted, deep Personality: Natural, earthy, substantial Colours: Terracotta, olive green, mustard The Winter Personality Characteristics: Cool, clear, bright Personality: Dramatic, sophisticated, efficient Colours: Pure white, royal blue, magenta Understanding these colour personalities can help in creating spaces that resonate with different types of individuals. For instance, a contemporary property in a bustling urban area might lean towards a winter palette to appeal to city professionals, while a countryside retreat might benefit from an autumn scheme to enhance its natural surroundings.

Simples? Well, it’s not so simple, but I only have a few hundred words to convey my message. In reality, there are tens of thousands of different tints, tones, and shades, each with its own psychological qualities. For example, dark navy blue is a stimulating colour, whereas sky blue is much more soothing. So, as with everything (isn’t outsourcing the best!), it might be wise to get a professional to work with you— though this is a great place to start.

A series of interiors designed by Louise

The Importance of Client Avatars in Design Before diving into colour schemes, it’s crucial to consider your target audience, whether you’re selling or renting.

Creating a detailed client avatar can guide design decisions and ensure the space appeals to the intended tenants or guests. It’s so important to get out of your head and into the head of your target audience.

I can’t stress this enough—the single biggest mistake I see investors and developers make is that they get so caught up in their own likes and dislikes, they forget they’re not selling to themselves!

Consider factors such as: Age range Profession or lifestyle Family status Cultural background Personal interests and hobbies

Scan me!

Recieve my client avatar PDF

For example, a property aimed at young professionals might benefit from a more vibrant, contemporary colour scheme, while a family-oriented space might opt for a warmer, more nurturing palette.

Angela Wright’s Scientifically Proven Colour Theory A few years ago, I trained with one of today’s leading colour psychology experts, who trained with Angela Wright—one of the original leading colour psychologists. Lucky me, eh?

Angela Wright’s colour theory (which has been scientifically proven) provides insight into how different people respond to colour.

Wright created four colour personalities, each aligned with a season: The Spring Personality Characteristics: Warm, clear, light Personality: Lively, friendly, youthful Colours: Warm yellows, coral, aqua The Summer Personality Characteristics: Cool, muted, soft Personality: Elegant, graceful, subtle Colours: Soft blues, lavender, rose pink

Oh, and the grey thing? Well, true grey, made from only black and white, is the only colour that has no positive psychological qualities. Let that sink in! Imagine the potential damage you’re doing by showing people around your 50 shades of grey apartment (shocked face emoji!).

So, if you are hell-bent on using grey, make sure it’s a warm grey (with added colour for warmth, like red or yellow), such as Dulux’s imaginatively named ‘Warm Grey,’ Little Greene’s ‘Perennial Grey,’ or the famous ‘Elephant’s Breath’ from the paint brand decorators love to hate, Farrow & Ball.

A Handy List to Leverage Colour Psychology in Your Rental Properties Create a welcoming entrance: Use warm, inviting colours like soft greens or heather tones in entryways to create a positive first impression.

Promote relaxation in bedrooms: Opt for pale blues or gentle greens to create a restful atmosphere conducive to sleep. Use colour to define spaces: In open-plan layouts, use colour to subtly delineate different functional areas without needing physical barriers. Add energy to communal spaces: Incorporate more vibrant colours in living areas to create a sense of energy and encourage social interaction.

Balance neutrals with accents: While neutral palettes are safe, strategic use of colour accents can add personality and emotional depth to a space.

Let’s Get Emotional In summary, by thoughtfully applying colour psychology principles, you can create spaces that not only look the business but also resonate emotionally with potential tenants or guests. This emotional connection can be a powerful factor in driving rental income and creating satisfied, long-term occupants. Ka-ching!

If I can help you with any of your interior design needs or if you’d like a few tips on maximising your sales or rental values, contact me using the details below.

www.wildkindinteriors.co.uk louise@wildkindinteriors.co.uk wildkindinteriors Louise Wynne

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HOW TO ANALYSE COMMERCIAL CONVERSIONS AND CALCULATE COSTS FROM THE COMFORT OF YOUR HOME

is worth based on its size. To calculate it, divide the property’s value by its total square footage. For instance, if a property is valued at £500,000 and has 1,000 square feet, the value per foot is £500 (£500,000 ÷ 1,000).

Comparing this with similar properties nearby can show if you’re buying or developing at a competitive price.

What is the Minimum Value Per Square Foot to Aim For? I only entertain areas with a minimum average sqft value of £200. This gives me more flexibility and ensures that the properties I develop can sell for a good amount.

Anthony Boyce

Of course, this figure differs for everyone and is just a rule of thumb (it will change depending on the purchase price and likely build costs — allowing £130 per square foot for a standard finish), but I have found that £200 and above is where you encounter fewer problems and find nicer areas.

Owner of 81 North Design & Co-host of The Property Thing

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Using my experience as an Architectural Designer, with two decades in the industry and more mistakes than I can count, I’ve developed a way to analyse commercial conversions quickly and efficiently—no more spending more time in the car and on viewings than with your family.

Cost Per Square Foot is Everything The first mistake I see other investors make, especially new ones, is confusing a good deal with a cheap property. Let me stress: just because a property is cheap, that doesn’t make it a good deal!

If you buy a commercial building on the cheap but have a cap on the maximum value your newly developed residential units can sell or rent for, you could struggle to see a decent return.

What you need to focus on is value per square foot (sqft). Value per sqft, or price per sqft, measures how much a property

My end user: I like to know who is going to buy or rent my property, so I know what spec to aim for. For example, if I know an area is affluent and attracts people with money, then I’m going to spend more money on design.

However, if my end user is likely to be students or contractors, I might aim for a slightly lower spec.

My strategy/exit: If an area is a tourist hotspot, I might consider holding onto my newly developed properties and using them as short-term lets. On the other hand, if the area is popular with buyers, I might decide to sell my development once it’s complete.

Income from commercial property: Just like knowing an area’s average rental income and tenant demographic, it’s important to know if there’s demand for commercial space in the area and the average rent for commercial properties. This information will help you decide whether to convert a property into residential or commercial units.

don’t know about the saying ‘full-time in property.’ From what I see, most people have a full-time job analysing deals. Personally, I don’t think conducting five viewings a day is the ‘financial freedom’ any of us have in mind!

Some of the techniques I’m about to show work well for other strategies too, like flips and new builds, so keep an open mind as you read on.

Local yields: Once you have the average price of property in the area, work out the average rental value. You can do this by looking at what’s available for rent on the market currently, or by asking agents. Divide the average annual rental income by the average property price, and you’ll have the average yield in that area. Different investors look for different yields, but I typically look for 6% and above.

The Power of Use Class E

One of Anthony’s Class E to MA permitted development projects

Save Yourself Time: How to Analyse Any Area from Your Laptop

With permitted development rights (PD), it’s never been easier to convert certain commercial units into residential property, as it’s a tick-box exercise rather than needing full planning permission. The council only gets 56 days to determine your application too, so that can save many months of subjective decision-making by the planning department.

Before you waste a day driving to a new town, just to find it’s somewhere you wouldn’t subject your worst enemy to living in, it’s better to do some desktop research.

To see if an area is a suitable investment hotspot, I look out for the following: Average value per sqft: I’ve covered this already. Use property portals, find a good selection of similar properties that are on the market, and use the calculation above to work this out.

Grade II Church conversion in to holiday let apartments

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bluebricksmagazine.com But Use Class E permitted development (PD) is often overlooked in favour of planning permission. With Use Class E, you can convert commercial units like shops, gyms, offices, light industrial units, restaurants, and nurseries into other types of commercial units within that same use class. For example, in certain cases, you could convert a hairdresser into offices without going through the full planning process.

Why would you do this? Well, if you want to refurbish a building and keep some of it commercial (maybe there’s more demand for offices than hairdressers), you can do so without the planning hassle!

Time for a ‘Sniff Test’ So, you’ve found a potential deal and you like the location. Next, it’s time for a ‘sniff test,’ so book your viewing and prepare to walk around the area.

Before or after your viewing, take a walk around the town where the potential deal is located. How does it feel? Does it feel safe? Is it a nice area? Who’s walking around? For example, is it professionals, elderly people, students, or a younger demographic?

If most of the shops are boarded up, that’s not a good sign!

I’d also recommend checking the local paper and chatting with local businesses. Find out what’s happening in the area. If a big business or attraction is coming to town—like a museum or factory—that could signal positive capital appreciation.

Planning for Planning Whether you’re going through PD or full planning, it never hurts to have a nosey at the local council’s website.

On here, you can see what planning applications other developers in the area have made and the pushbacks the council gave them.

Knowing these pushbacks can help you account for them in your own application.

I’d also recommend looking at ecology reports and heritage statements to make sure there are no nasty surprises that could catch you out.

What Costs You Need to Budget For If you like the deal and the area, it’s time to do a detailed analysis of your expected Gross Development Value (GDV) and the costs to achieve it.

Here are some of the key costs you need to account for: Professionals: Architects, planning consultants, ecology experts, heritage specialists, surveyors, structural engineers, etc Surveyors’ Services: Valuations, monitoring, structural surveys, warranties, building control, etc

A Key Tip for Saving on Build Costs A quick tip is to have your interiors professionally designed and agreed with plans, elevations and CGIs before commencing any building work. This way, your builders know the exact spec you’re looking for, the materials you need, and where every individual plug socket should go. This will save you time and prevent miscommunication.

Always start with the end in mind.

Use Artificial Intelligence (AI) to Speed Up the Development Process AI is all the rage these days, and it’s especially useful for property investors. Now, I use ChatGPT to analyse planning documents, which is a massive time-saver. I simply tell ChatGPT what I’m looking to do with the building and ask it to give me a checklist of what policies need ticking off. It’s much faster than wading through long, boring planning documents!

I also use AI to write project plans and planning statements, as well as to help create marketing materials. Now, AI can even be used to generate CGI imagery, which is a huge cost-saver!

Enjoy Your Freedom!

I hope that my article has helped you identify areas where you can save time, rather than becoming a full-time property viewer!

If I can help you with any of your projects, then feel free to contact me on the below. I also run The Property Thing in Darlington, so if you’d like to meet some local investors and have a moan about all things property, then let me know, and I’ll send you the details. anthony_boyce_property Anthony Boyce anthony@81northdesign.com

PropertyPipeline THE ESSENTIAL TOOL FOR SERIOUS PROPERTY INVESTORS

Services: Electric, gas, water, internet, etc Finance: Interest, fees, legal costs, etc Time: Delays to build, planning, or other parts of the project These costs can vary, but I like to budget £2,000 for each service connection. For example, if I need five water connections, I’ll budget £10,000

KEY BENEFITS MANAGE YOUR LEADS LIKE A PRO COMPARE STRATEGIES TRACK SERVICES, RENEWALS & REMINDERS

Keep in mind the “unknown unknowns.” You never truly know the full extent of the refurb work needed until you strip a building back to brick.

MANAGE YOUR PORTFOLIO AND TENANCIES

How do you budget for the unknown unknowns? My answer is to always have a worst-case scenario contingency set aside for any unexpected costs.

AND LOTS MORE, ALL IN ONE PLACE

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KEEP TRACK OF YOUR BORROWING

propertypipeline.co.uk hi@propertypipeline.co.uk

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ANTI-MONEY LAUNDERING IN UK PROPERTY KEY INSIGHTS FOR DEVELOPERS, INVESTORS, AND LENDERS

and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017). These regulations require developers, lenders, and solicitors to perform due diligence, preventing illicit funds from entering property transactions.

Obligations include: Customer Due Diligence (CDD): Verifying the identity of clients and understanding the business relationship.

Ongoing Monitoring: Continuous checks throughout the transaction to identify suspicious activity.

Verifying Borrowers: Ensuring that borrowers comply with AML regulations, including verifying the borrower’s source of funds and assessing any potential risks.

Failure to meet these obligations can result in legal, financial, and reputational consequences, which can affect future lending opportunities.

Red Flags in Property Transactions Developers, investors, and lenders should be vigilant for red flags that may indicate money laundering, such as:

Bushra Mohammed Property Solicitor

Suspicious Activity Reporting (SAR): Solicitors must report any suspicious activity to the National Crime Agency (NCA). Failing to do so results in penalties.

T

The Proceeds of Crime Act 2002 (POCA) allows authorities to confiscate property linked to criminal activity, further emphasising the need for AML compliance throughout transactions.

Complex Ownership Structures: Layers of ownership can conceal illicit activities.

Large Cash Payments: Cash transactions in property deals can disguise the origin of funds.

The Role of Solicitors in AML Compliance

Frequent Ownership Changes: Multiple or unexplained changes in ownership can signal potential money laundering.

he UK property market has long been a prime destination for investors, but it’s also a hotspot for money laundering.

With heightened scrutiny on high-value transactions, staying compliant with anti-money laundering (AML) regulations is essential for property developers, investors, and lenders. Non-compliance can lead to fines, project delays, or legal consequences.

This article explores AML compliance, the role of solicitors, and the steps stakeholders can take to mitigate money laundering risks.

The Importance of AML Compliance UK property is highly susceptible to money laundering, making it a priority for regulators.

Criminals often exploit property transactions to “clean” illicit funds. Developers and investors must ensure their involvement in projects complies with AML regulations.

For developers, raising capital for property projects means verifying that all funds come from legitimate sources. This includes vetting investors and confirming the origin of funds.

For investors, transparency is key. Providing clear documentation about the source of funds protects them from suspicion and facilitates smoother transactions.

Failing to comply with AML regulations can lead to financial penalties, project delays, and reputational damage. Developers and investors must be aware of the serious consequences non-compliance can have.

Key AML Legislation for the Property Sector The UK’s AML framework is grounded in the Money Laundering, Terrorist Financing,

Solicitors are pivotal in ensuring AML compliance in property transactions. They act as gatekeepers, verifying that funds entering transactions are legitimate and from identifiable sources. Their responsibilities include: Know Your Client (KYC): Solicitors must verify the identity of all parties, including developers, investors, and lenders.

Source of Funds Verification: Solicitors ensure that funds being used in the project come from legitimate sources by reviewing evidence and documentation.

Solicitors also provide ongoing monitoring during transactions and are required to report suspicious activity to the NCA. Their expert advice helps developers and investors avoid potential legal and financial risks while ensuring compliance.

AML Obligations for Lenders Lenders, including banks, private equity firms, and institutional investors, also have a responsibility to ensure AML compliance when financing property projects. Lenders must perform due diligence on both the developer and the project to ensure that no illicit funds are involved. This includes: Monitoring Loan Transactions: Implementing ongoing monitoring systems to detect unusual activities, such as suspicious fund transfers or payment patterns.

Use of Offshore Companies: Offshore entities are often used to obscure the true source of funds.

Solicitors are obligated to report these red flags to authorities, which could lead to the halting or re-evaluation of the transaction.

Consequences of Non-Compliance Non-compliance with AML regulations can lead to substantial fines, project delays, and criminal penalties. In extreme cases, authorities can confiscate property linked to illicit funds.

For example, a London development was halted due to the developer’s failure to prove the source of funds, leading to delays and financial losses. Such examples underscore the importance of thorough AML checks.

Conclusion: Protecting Your Property Projects AML compliance is essential to protect property projects from financial and legal risks. Developers, investors, and lenders must ensure transparency in all transactions and meet AML standards to avoid complications.

Thank you for reading, and I wish you the best.

Bushra Mohammed www.festec.co.uk LinkedIn: bushra-mohammed Instagram:bushra_propertyinterest 11 | Issue 31

Commercial Property and Investment Lawyers Specialist property portfolio and contractual arrangement advice.

At Ison Harrison, our Corporate Lawyers have considerable experience in assisting businesses and investors negotiate terms of Joint Venture and Collaboration Agreements. Our Lawyers'' expertise in this field spans across a variety of sectors, structuring Joint Venture Agreements for sharing risk, resources, IP and profits.

Business ventures such as these can be extremely successful and lucrative, but it is imperative to have comprehensive agreements in place at the first instance to define parameters and protect your interests.

We are leading Commercial Property Lawyers who can assist you with a full range of matters on a fixed--fee basis.

Tel: 0113 284 5000

corporate@isonharrison.co.uk

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OVERAGE SOURCING How to Sell Problem Properties for Multi-Five-Figure Sums

Key Points: The vendor is fully aware of your approach and agrees to it in a legally binding, written contract.

A timeframe is set, typically two to three weeks, during which the property is removed from the market to allow you to find a buyer.

My Most Profitable Deal Before we dive further into how this strategy works, let’s look at its potential.

My most profitable deal was a small house in Cumbria. I found it on the market for £50,000. I knew the area, so I knew this property was worth £80,000 all day long.

It turns out that the vendor was going through a divorce. Because of this, they wanted to sell the property at the price they bought it for so that there was no money left over to split with their ex-partner.

Paul Stapleton

Managing Director of Casita Properties

W

hen people think of property sourcing, they often imagine the ‘traditional way’, where you receive a fee from an investor for selling them a ‘deal’. Over time, this method has come with negative stereotypes, such as sourcers taking a £3,000 reservation fee for a property, walking away shortly afterwards, and the deal falling out of bed now that no one is handling the sales progression.

Of course, not all sourcers are like this, and if done correctly, sourcing can be an extremely valuable and profitable service.

But there is another way—a method where, as a sourcer, you only get paid upon completion, but the commissions you earn are much higher, sometimes reaching multiple five figures (or even more in the most extreme cases).

This is overage sourcing, how it works and how you can collaborate with agents to get a stream of highly profitable deals.

What is Overage Sourcing?

With overage sourcing, rather than representing the buyer (investor), you act on behalf of the homeowner (vendor). Here’s an example of how a typical deal looks: You identify a property that has been on the market for a long time with no signs of selling soon. Let’s say it’s listed at £120,000.

You negotiate a lower price with the vendor, for example, £110,000.

You then approach investors in your database and offer the property at a higher price, potentially the original £120,000.

Upon sale, you raise an invoice to the vendor’s solicitor for the £10,000 difference between the agreed purchase price (£110,000) and the actual sale price (£120,000). This £10,000 serves as your commission for facilitating the sale.

We agreed on a sale value of £54,000. The additional £4,000 was to help with their early repayment and legal fees. We then sold the property to our investors at its actual value of £80,000, making £26,000 commission in the process. That’s nearly 50% commission!

The Biggest Overage Sourcing Deal I’ve Seen Overage sourcing profits can sometimes reach extreme levels.

Though rare, I want to share a real-life example of a large deal to show what’s possible.

When I worked on this deal six to seven years ago, I was a newbie at a large firm. While this isn’t your typical deal, it demonstrates the potential with the right team and contacts. The project involved the sale of three blocks of twelve apartments: We sold 36 apartments individually, earning a fee of £7,000 per unit (£252,000 total).

We sold the 3 freeholds separately for £78,000 each (£240,000 total).

We sold 18 parking spaces for £5,000 each (£90,000 total).

Total commission made: £582,000 All of this was under one contract with the same vendor.

Building Relationships and Finding Investors Now, back to the strategy, and how you can start using it.

Overage sourcing relies on the database of investors you have access to. Coincidentally, finding investors is also the thing that most people in property say they struggle with.

From experience, I’ve learnt that the secret to finding investors is often hidden in the people who are neglected at networking events.

People like mortgage brokers, financial advisors and solicitors. You can set up a referral partnership with these individuals, as they often come across people looking to invest.

13 | Issue 31

bluebricksmagazine.com It’s all about relationships, and the same goes when you’re looking for deals. Rather than focusing on property portals for individual deals, build relationships with estate agents who can regularly pass you opportunities.

You Are a Salesperson I come from a background in sales and sales training, having learned from many industry heavyweights. One of the most impactful courses I took was Jordan Belfort’s Straight Line Persuasion (AKA “The Wolf of Wall Street”). If you want to improve your sales skills, I highly recommend listening to Brian Tracy, author of the popular book Eat That Frog.

In the property industry, many people have the knowledge to invest, but they struggle to close deals because they lack sales skills. Every time you speak to an estate agent, you’re selling—whether it’s selling yourself or your offer. The estate agent is the gatekeeper to the homeowner, and you need to win them over first.

One last thing about sales: expect to hear “no” 99 times more often than you hear “yes.” If everyone said yes, you’d be an order taker, not a salesperson. Remember, it’s just business—don’t take it personally.

How to Approach an Agent and Pitch Overage Sourcing The first step is identifying a suitable property—one that’s been on the market for a while or had previous offers fall through.

Paul and Hayley Andrews, a regular feature in Blue Bricks Magazine been listed for a long time, they should have no problem taking it off the market for three weeks.

Top Tip Your social media is your shop window. It needs to be full, up-to-date and current. I know that if an agent views my LinkedIn profile after I’ve spoken to them, it’s a done deal. Everything on their backs up my credibility.

Start by calling the agent and asking about the property. How long has it been on the market? Have any sales fallen through, and if so, why? Was it due to a down valuation or issues with the survey?

Sales Progression- An Estate Agents Nightmare

Importantly, don’t make an offer on the first call. Treat it as a fishing expedition, gathering information to understand the vendor’s situation and the property’s challenges.

Sales progression is that job that every agent hates doing, because they’re busy, and it’s admin. Still, they have to do it, albeit reluctantly, and normally on a Friday afternoon.

Later in the day, follow up with something like: “I’ve spoken to my business partner and investors, reviewed local comparables, and the best we can offer is £XXX. Here’s how I arrived at that figure.”

So why wouldn’t they let you take care of this headache? If you tell an agent you’ll deal with the sales progression process, and update them every Friday, most of them will be receptive to the idea.

The agent will then relay your offer to the vendor. If they accept, the hardest part is done—you’ve secured a discounted offer. Once the price is agreed upon in the vendor’s mind, they are psychologically committed to the deal. From there, it’s about structuring the agreement.

It’s worth noting that you legally can’t take front and back-end fees, so if you’re being paid by the vendor, you can’t also take a fee from your investors.

Only after the price is agreed upon should you introduce your strategy. This positions the agent in a way where they’ve already informed the vendor of a buyer. For the agent to tell the vendor the sale has fallen through would reflect poorly on them.

All you need to do is one deal with an agent before they start passing you more opportunities. If you say you will sell a property in a week, and you have an investor buying it within a week, they won’t even wait till the sale completes to send you the next one

You then explain the process—such as why the deal needs to be off-market—and request to speak directly with the vendor to discuss the strategy and move the sale forward.

I’ve done 39 deals with just one agent that I work with. Keep your word, make that first experience comfortable and give the agent regular updates. Be conscious, in property, that first deal will work against you. You’ll encounter problems.

Why Would an Agent Let You Deal with the Vendor?

Why would an agent let me speak directly with the vendor? Again, it comes down to sales. If an agent has had a property listed for three months or more, and they’ve had multiple viewings and offers that have gone nowhere, it’s clear that there’s a problem.

A problem that might make them open to a creative solution.

Agents know it’s not a good look if they have a property listed for too long. Potential sellers looking for an estate agent to work with want to see one that sells its stock quickly.

Why Would an Agent Take a Property Off the Market for You? The value you’re bringing is that pre-qualified list of investors. Most sourcers who think they have investors just have a mailing list of people who ‘might’ buy a deal if it’s 20% below market value (BMV). You need a list of serious people who you know have the capital to invest.

If an agent wants access to this list and wants to sell a property that’s 14 | Issue 31

Your First Deal Will be Your Worst Deal- Don’t Hide

The first deal I ever did was by far my worst. However, I still work with that same estate agent today, because I didn’t hide. I stayed in contact and constantly told them what I was doing to fix any problems that arose.

That’s how you keep a good working relationship.

It’s All About Relationships Property investment is all about building relationships. If it’s broken down, then that’s what this strategy is really about. Build those relationships, stay consistent and be resilient. If I can help you with anything, then contact me using the details below.

Paul Stapleton paulstapleton_official

bluebricksmagazine.com

CASE STUDY FROM ACCIDENTAL LANDLORD AT 20 TO PURCHASING A £96,000 COMMERCIAL PROPERTY AND INCREASING ITS VALUE TO £425,000 AMIDST LEGAL CHALLENGES

Savoys

As regular features in Blue Bricks Magazine, we are pleased to give our slot in this issue to a member of our community, Mariam Radi. Mariam is an inspiring investor, and we have loved helping her progress in her property journey. We are pleased to have her in our community, and she perfectly demonstrates the calibre of individuals within there.

C

reativity is the most important and overlooked skill when investing in property. Without creativity, I would have never found my ‘best’ deal to date or seen the potential it had: a commercial unit close to the heart of London with the potential for a huge increase in value.

This deal, though attractive, was years in the making. Few people believed I could pull it off, and at some points, I even doubted myself!

This is how I turned a £96,000 run-down salon into a luxury flat valued at £425,000. This project took time, stress, and a lengthy legal battle, but in the end, the results were better than I could have ever imagined. I hope that this article gives you some ideas on how to use creativity in your next deal and shows the value of persistence!

Borrowing One Million Pounds as a 25-Year-Old When the HMO came back on the market, I offered £1.477 million, which was accepted. I had some capital from a house I inherited and sold in the Middle East, which left me with a million-pound deficit I needed to fund. Unsurprisingly, the banks weren’t willing to lend a million pounds to a 25-year-old, which created the first of many problems. As a solution, I offered everything I had as collateral, including existing investments. Because of this, and the fact I have experience as a landlord, I managed to secure a 25-year mortgage, but the interest rates were excruciatingly high.

If I didn’t have the experience that I have, then it would never have happened, even with security. In the bank’s eyes, even if you can repay the mortgage with the generated rental income, what if you’re a terrible landlord, and all the tenants sue you? To them, it’s about mitigating as much risk as possible.

A Deal That’s Too Good to Be True I acquired a 15-bed HMO with tenants in situ in Greenwich for £1.4 million. Based on yields, I estimated that its actual value as a commercial property was circa £1.7 million.A property being listed that far below market value was bound to have its problems, especially if other experienced investors had pulled out of the sale before completion.

I waited to see what would come out of the woodwork, dreading the results. So, I wasn’t shocked when, two months in, the vendor asked to

An Overview of the Project This project is a little complex, so I’ll paint a quick picture of how it looked. The building was a 14-bedroom, tenant-in-situ HMO. Part of the building, but on a separate lease, was a hairdresser’s salon, making this deal a mixed-use purchase. Both the salon and the HMO were on the same freehold, though the salon had its own leasehold and was owned by a different individual (more on this later in the article).

Located in Greenwich, the building was in the perfect area: a stone’s throw from the tube to central London, and a 15-minute tube ride from Canary Wharf.

The Gold is in The Follow-Up I found the 14-bed HMO while scrolling through Rightmove. What immediately stood out to me was how low the value was for the area and property size.

When I went to the open house viewing, I felt like the most underprepared and under-experienced person there, but I made an offer anyway, which was rejected. Still, I kept my eyes on the property portal, and soon enough, the deal was back on the market.I think that’s something important to think about.

Around 30% of house sales fall through before completion in the UK. The percentage is even higher for commercial property. If your offer gets rejected, then save that property’s details somewhere and follow up with the vendor or agent regularly. If the sale falls through, it will just make the seller more motivated!

16 | Issue 31

Mariam Radi

Multi-Award Winning Property Investor & Developer

bluebricksmagazine.com

The refurb in progress

Here is a photo of Mariam alongside one of her mentors, Malkit

sit down with me.What did shock me, however, was the reason why so many sales had fallen through. The owner of the HMO property also owned the freehold for a commercial unit (hairdressing salon) next door and had been renting out the basement next door for the past 10 years, using it as an additional room.

Making a Gambit – Trying to Secure Two Deals in One

The plot twist was that the owner of the salon was now in prison and was no longer in a position to sue the owner of the HMO. This was something I found out after due diligence. The vendor did not know this and assumed the legal battle was still going ahead, hence the deals falling through, as in English law, whoever inherits the property inherits its legal problems.

I realised the commercial property was seized by debt recovery and, as debt recovery agencies go, they generally only care to make money, and this one was no different! I decided I would take the gamble and buy the HMO, then work on purchasing the commercial unit from the debt collectors.

The commercial unit was 75 square metres, had 50 years left on the lease, and was in a state of disrepair. I knew that freehold, one-bedroom flats in Greenwich of the same size retail for around half a million pounds.

I deciphered a plan to acquire the salon, cancel the leasehold, and convert it into a residential flat. It would be worth close to half a million pounds and achieve upwards of £1,750 per month in rental income.

This deal would not work if the salon was sold to someone else. Both properties were so closely joined they were practically part of each other, sharing entrances and a garden.

If someone bought the salon while I had the HMO, then they could make both my life and the life of my tenants very difficult. This deal was only viable if I could secure both the HMO and the salon.

A Tip for Readers: Adverse Possession – A Useful and Frightening Law The owner of the HMO was trying to claim something called Adverse Possession. Under this law, if land or property is vacant for seven years, but is occupied by someone who is not the owner, with no legal disputes and a defined border, then the property automatically becomes the possession of the person living in that property or on that land.

This law exists to make sure properties are not neglected and are being regenerated into the economy. If you have any empty properties or vacant land, it’s a law you need to look out for.

Securing the HMO & Freehold I have a law degree, and I have experience working in a law firm. I felt confident I could hold my own on this case and save myself a ton of money in solicitors’ fees.

A floor plan of the project

So, unperturbed, I went ahead, making a deal with the vendor that I’d only agree to continue the purchase of the HMO if they agreed to sell me the freehold for free. In return, I offered to take responsibility for all the legal issues (which I’d have to do anyway). The vendor, not realising this, accepted the offer.

17 | Issue 31

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Before

After

My strategy worked and buyers were put off!

I cancelled the lease and converted it into a one-bedroom flat, meaning both it and the HMO were now on the same freehold. I elevated the former commercial unit’s value and the value of my HMO! Instead of a rat-infested hair salon worth £96,000, the newly refurbished, leasehold-less apartment was revalued at £425,000. This unorthodox deal, the one that so many people tried to talk me out of, was worth every penny and every hour spent writing letters!

The Figures: Figures for the 14-bed HMO Purchase Price: Mortgage: Refurb costs:

£1,440,000 £1,000,000 None,

as it was a tenant-in-situ property. Instead, I did minor works on each room whenever a tenant moved out.

A massive improvement on the bathroom

Now, with the HMO and freehold in my grasp, my next step was to secure the leasehold of the salon, something that would be unviable if the debt collection agency that owned it continued to demand such a high price. The odds weren’t looking good, as my original offer of £100,000 was rejected.

Securing the Salon: A Long Legal Battle The disrepair of the salon was causing issues with the HMO. Rats were appearing, and the auction company that was selling the salon started showing potential buyers around my garden, which caused a lot of worry among tenants.

Because of this, and my anxiety about the salon being sold to someone else, I began writing multiple letters of claim. I made each claim individually because legally, if the debt collection agency is speaking with a potential buyer, they have to disclose each one separately. I knew this would put buyers off and make the agency more likely to give up and accept my offer.

My letters of claim included things like trespassing, illegal activity taking place in the property, and disrepair. I even contacted the auction company, as they had a legal obligation to put these claims on their website.

The debt collectors ignored my letters and my offer to purchase the property, and they listed the property at auction. I telephoned the auction house and informed them of the history between the two properties and the letters of claim. The auction house had to disclose the information to all potential buyers. I registered to bid and managed to secure the property for £96,000!

Before

18 | Issue 31

Value today (with the additional flat):

£2,500,000

Figures for the hair salon/flat Purchase Price: Refurb costs:

£96,000 £35,000

I saved money on this as I had leftover materials, like tiles and flooring, from a previous project, and I topped up on anything we needed.

End Value: Monthly Rental Income:

£425,000 £1,750

Additional fees across both properties: Legal Fees: Stamp Duty: £60,000

£3,000

(when purchased with the hair salon, it was technically a mixed-use property)

Resilience is Key I know this is a niche deal and one that relied heavily on my experience in law. However, I hope it shows you the power of resilience and how creativity, mixed with the right knowledge, can help you find those highly profitable, unorthodox deals.

If I can help with anything, or if you’d like to see more of my property journey, please contact me using the details below.

Mariam Radi itsmariamradi

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HOW TO ADD 25%-35% TO YOUR PROPERTY VALUE WITH TITLE SPLITTING The Well-Intentioned Myth: “Title Splitting Does Not Work”!

You may have been told, by a well-meaning mentor, property trainer, solicitor, mortgage broker or accountant that there is no point in Title Splitting an apartment block, if you are planning to hold on to the apartments within the block. In fact, you may have been told that the best time to Title Split is when you sell or even to simply not bother.

Rachel Knight

Founder of Titlesplit.com

T

here is huge profit to be made from Title Splitting commercial property, land and residential property. However, the most lucrative strategy, that is easiest to access in 2024 is in splitting existing multi-unit freehold blocks.

First of all, what is Title Splitting? ‘Title Splitting is a process where a property investor splits a single unit of property into multiple units of property, using the legal process in place in the geographical location at the time.

In 2024 this will include creating leasehold apartments from unsplit freehold blocks (MUFBs). So how many of these MUFBs are available in the UK’.

(Source Titlesplit.com 2020).

The numbers below are accurate on Monday 21st October 2024 and are based upon land registry data.

Number of unsplit blocks in the UK 449,311 Number of unsplit blocks owned privately (by an individual) 216,527 Only 6,745 are listed for sale today.

That is 1.5% of the total available blocks listed for sale.

The rest of these blocks are not on the market, but many landlord owners are potentially looking to sell.

These blocks can be secured at block market value (based upon rent and yield). Adding value in the usual way via refurbishment and also Title Splitting the units gives you access to split market value (see example in Title Split visual).

20 | Issue 31

Splitting when you sell, effectively means that you will leave your Equity in the block until you one day sell it. The myth that Title Splitting cannot be done and that there is no point is perpetuated by the simple fact that the people saying it have absolutely no idea how to make it happen. There is a saying “you do not know what you do not know”. In this instance the people saying this, or even worse sending you around in circles trying to get to the information, simply have no idea how to do this because they have tried and failed to complete a title split, or they simply never tried.

Title Splitting during ownership is complicated, has to be done in the right way at the earliest time, all of the conditions need to be right, otherwise the Title Split simply cannot happen.

However, if you do understand exactly how to do this, then it is a very lucrative strategy, and our clients are adding hundreds of thousands of pounds in Equity into their portfolio by Title Splitting blocks.

Whether you purchase an existing multi-unit freehold block (MUFB) and break it into individual leasehold apartments, you convert a commercial property into residential C3 dwellings or you turn a house into apartments, Title Splitting will add an additional capital uplift to your project. If you are interested in a high-cashflow and increased equity strategy, then read on.

Why does Title Splitting add capital value to your MUFB? The value added by Title Splitting has a number of really simple reasons, but the main one is how properties are valued by chartered surveyors, the UK financial sector and even agents. Title Splitters are adding value by adding the option to have either of these valuations and splitting apartments into individually saleable units. In the main breaking up MUFBs into individual leasehold apartments adds around 25% -35% capital value. This works in many parts of the UK including areas in the Southeast. The capital value is accessible after the refurbishment and Title Split Takes place.

Mortgage Type 1- Semi Commercial Block Mortgage (Unsplit or Title Split Blocks) MUFB Mortgages are valued in a similar way to sui generis HMOs. When the bank surveyor comes to value your block, they will look at the rent minus a proportion if you have bills included. They will take into consideration market rent for flats in a similar condition to yours, and local area yield. A valuation will be done on the block (MUFB).

Please bear in mind that these valuations DO NOT grow in line with capital growth and that if yields go up (for example when interest rates rise), values can come down. The great news is that even if you Title Split the block, you can still finance your building on a block mortgage if that is better for you initially.

Many of the 216,000 landlords with unsplit blocks can only access this type of mortgage.

Please note, that rent has to be increasing to ensure your block increases in value over time. If labour add rent caps at any time during their five-year term (this is likely) then this will impact the long-term valuations on blocks and suis generis HMOs. The only way you can split this block upon sale is if the lender is happy for you to sell one flat at a time. Most lenders will not allow this, so most blocks are sold as MUFBs to investors.

Mortgage Type 2- Buy-to-Let/ Comparable Mortgages (only available on Title Split Blocks) Buy-to-let mortgages will be available on individual Title Split apartments. This type of mortgage will take into account the local comparable sold prices, but also check rental covers the mortgage using a multiplier. This is the valuation that we would expect to grow in line with UK house price growth. Different lenders have different rules, and sometimes you may need to use more than one lender.

The great news is more products are coming

bluebricksmagazine.com

This is top of market rent and no bills are included.

BTL Rental income

£3,875 per month/ £46,500 per annum.

Area yield

11%

Investment Valuation

£422,727

(rent and yield multiplier)

Individual Title Split Apartment valuations 2024: Flat 1

£145,000

Flat 2

£100,000

Flat 3

£145,000

Flat 4

£140,000

Total Split Value

£530,000

Split Valuation 25.37% higher in 2024

This block will be financed as 4 individual apartments with a split value of £530,000.

An interior shot of one of Rachel’s properties onto the market for Title Split apartments and lenders are really starting to understand the size of this opportunity.

Example of a real Title Split Block in the East Midlands in 2024 The recent interest rate hikes have made it harder for property investors to find property deals, where all of the initial investment can be recuperated after refurbishment.

This is the normal Buy, Refurbish, Refinance Model. As you will all know it is harder to buy below market deals in 2024. Building a portfolio of Title Split apartments however, we can add value in an additional way. Please see The Smart Title Split Example depicting the actual property valuations for this four apartment Title Split in the East Midlands.

Interest rate on BTL mortgages around 2% lower than investment (hybrid commercial) Mortgage. On this particular block, on either an investment or buy-to-let mortgage, please see how the payments would differ over a 5-year fixed rate mortgage if I borrowed £397,500 on a 5 year fixed rate mortgages.

TYPES OF MORTGAGE

INTEREST RATE

AMOUNT BORROWED

1 YEAR INTEREST PAYMENTS

5 YEAR INTEREST PAYMENTS

5.5%

£397,500

£21,862.50

£109,312.50

7.7%

£397,500

£29,812.50

£149,062.50

BTL mortgage -individual split apartments

Investment mortgage MUFB unsplit or split Cash saving if BTL mortgage financed to BTL 2% lower interest Mortgages after than Commercial Title Split mortgage

£7,950 saving in 1 year

£39,750.00 Saving over 5 years

On this block the valuations are based on market value in 2024 on a real block example in the East Midlands. In general Title Splitters can achieve a 25% to 35% capital uplift by splitting refurbished blocks. In general Title Splitters save tens of thousands in interest payments by gaining access to buy-to-let mortgages

Get Ready to Start Title Splitting There is a saying that ‘you need to be in it to win it’. So many investors are currently sat on the fence. But I want to ask why this could be?

Title Splitting will enable to grow your portfolio fast! You will gain access to the lowest interest rates and the highest market values! You will be able to take advantage of either investment mortgages or buyto-let mortgages depending on your initial valuation. So, the question is really: why wouldn’t you Title Split?

www.titlesplit.com @titlesplit A kitchenette in one of Rachel’s investment properties

21 | Issue 31

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WHY RENT-TO-RENT ISN’T JUST FOR NEWBIES HOW ESTABLISHED INVESTORS CAN USE R2R TO FAST-TRACK WEALTH CREATION fully occupied or not. Any income above that amount becomes your profit.

A Need for Cash flow: How I Started in Property Before property, I spent a good decade in the music industry, singing and songwriting.

Unless you’re a major celebrity, though, income from music is anything but predictable; it’s constantly up and down. That volatility drove me to search for ways to build consistent cash flow.

Simon Smith

Property Investor & Rent-to-Rent Mentor

R

ent-to-rent (R2R) is seen as a gateway into the world of property investment, often aimed at beginners with limited capital. From personal experience, I can tell you that R2R isn’t just for those starting out; it’s also a strategy employed by established investors to boost cash flow, giving them more capital to invest in assets and build long-term, legacy wealth.

In this article, I’ll break the stereotype of rentto-rent being a ‘newbie’ strategy, show you how even billionaires employ a similar technique and demonstrate how you, as a new or established investor, can use it to fast-track your asset acquisition.

What is Rent-to-Rent?

Before diving into the article, let’s quickly go over what rent-to-rent is and how it works. If you’re reading a property investment magazine, chances are you’re already familiar, but it never hurts to be sure!

In simple terms, R2R involves renting a property from a landlord with legal permission to control it. This is contractual and allows you to find your own tenants and collect rental income.

Typically, you make a profit by converting a single-let property into a House of Multiple Occupation (HMO), where you rent out individual rooms. This is often referred to as Rent-to-HMO (R2HMO). Alternatively, you might use the property for short-term lets, charging by the night to holiday-goers or contractors, also known as Rent-to-serviced accommodation (R2SA).

In either case, the landlord receives a preagreed rental income, whether the property is

Like many people, I knew property was a popular route to wealth, but also like many, I felt the barrier to entry was too high. So, I went on a mission of self-discovery, pulling together pockets of information from multiple sources and creating my own course/book.

I realised that all I needed to get on the ladder was just one property. After scraping together funds—borrowing from my parents and selling my car—I finally had enough to buy an £87,000 two-up two-down in Derby.

My dream had come true, but it had taken every penny I had.

A Shift in Mindset- Cash flow is King I was still determined to build a property portfolio, but I quickly realised it would be slow going if I had to save up large chunks, invest, and then start the cycle all over again.

The few hundred pounds my buy-to-let was generating weren’t making much of a difference.

To be fair, I’ve always seen property ownership as a long-term strategy, so I hadn’t expected my buy-to-let income to fund future purchases.

Still, I was intent on pursuing my path as a property investor, so I shifted to a less capital-intensive strategy: rent-to-rent. After 10 weeks and a series of early mistakes—like using buzzwords like “guaranteed rent” when speaking to landlords—I finally secured my first rent-to-rent deal: a three-bedroom house with two reception rooms.

The total cost to convert the property into an HMO was £7,000. After covering expenses— such as the landlord’s rent, utilities, and maintenance—I was netting £800 in monthly profit. That’s when it hit me: I was earning more from this rent-to-rent deal than from the property I owned, and my initial investment had been a fraction of the cost.

In my first year, I went on to secure 20 rentto-rent deals, generating around £20,000 a month in cash flow. This income allowed me to retire my wife and support my mum after her redundancy.

Using R2R as an Experienced Investor Don’t get me wrong; I’m not downplaying buyto-lets or the importance of owning assets.

Owning an asset is essential for building longterm wealth, and when I buy property, that’s the vision I have in mind.

But investing is capital-intensive, and you either have to rely on refinancing or investor funds to keep purchasing property. Rent-torent doesn’t need to replace your investment strategy—it can complement it. You can use rent-to-rent as a low-cost addition to your portfolio, then reinvest your profits into purchasing property.

Why Invest in an Asset You Don’t Own? The biggest pushback I hear from experienced investors is that they don’t see the value in investing time or money into a property they don’t own. I get where they’re coming from, but I also believe that’s looking at rent-to-rent the wrong way. Asset control—without full ownership—happens on a much larger scale than many people realise.

For example, I recently spent some time in the Maldives, where I learned this concept in action. While chatting with a hotel manager, he mentioned that the island was actually owned by a foreign billionaire. But here’s the twist: you can’t technically own an island in the Maldives, because the government retains ownership of all islands.

Instead, the government leases sections of these islands (often just lagoons) to wealthy individuals or companies, such as The Ritz Carlton. These lessees then build hotels, villas, shops, and other businesses on the land.

This is asset control at the highest level.

As the saying goes, “Own nothing, control everything.”

How Do You Get Started with R2R? Like anything, the process is easier when it’s stripped to its bones and laid out in a step-bystep guide.

Step 1: Build Your Foundation: Set up a limited company (if you don’t have one already) Ensure your compliance is in order Create contracts Develop a website Build out your marketing materials (leaflets, social media pages,etc) 2. Market Research: Location is everything. Identify an investment hotspot that aligns with your goals.

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bluebricksmagazine.com For instance, if you want to make money using a property as a short-term let, look for areas that are holiday hotspots or have large businesses with contractors.

Check Legal Compliance: Verify that the provider has the necessary legal compliance and that their R2R business has their full attention and focus.

3. Finding a Deal:

Meet In-Person: Have a face-to-face meeting over coffee to get to know the provider and ensure they are someone you can trust.

You can use one of two ways to find a deal: 1. Direct to Landlord (D2L), or 2. Through an Agent. Here’s how to do both.

Direct-to-Landlord: Send out leaflets Run online ads (Facebook, Google) Go to local networking events and speak to people in your network D2L often leads to better deals as there’s no middleman like an agent looking for a fee, but it can be time-consuming and costly.

Working with Letting Agents: This option is ideal if your time is limited. However, I will stress that experience and credibility make a big difference; agents prefer serious investors over window shoppers.

To approach an agent, find a specific property they have listed. Then, visit the estate agent in-person and discuss that property. This makes for a focused conversation and gives you a solid talking point.

Should You Let Your Own Property to a Rent-to-Rent Provider?

With the Renter’s Rights Bill on the horizon, many landlords are concerned about how much control they will have over their properties. This is just one reason that some people are turning to R2R providers.

Review Contracts: Ensure the provider has the appropriate contracts in place. Have a solicitor review these contracts before you agree to anything.

Prioritise Trustworthiness: It goes without saying, but only work with individuals who are trustworthy, transparent, honest, and have a proven track record.

Anything Worth Having Takes Hard Work I won’t say that building a R2R portfolio is easy, because it’s not.

However, anything worth having in life takes a lot of work. My final piece of advice is to stay persistent. I see people give up after a few months if they don’t get a deal. It’s not unusual for a property purchase to take nine months to complete, so don’t be afraid to wait nine months to find your first deal.

If you’d like to learn more about the R2R strategy, and how you can use it to grow your portfolio, then join me at my Rent-to-Rent Super Conference on the 25th-26th of January. Alternatively, you can see more of my content on my YouTube channel, where I post regularly.

Best of luck with everything!

Simon Smith

If you’re debating this option, here are a few pieces of advice: Work with a Reputable R2R Provider: Ensure you’re dealing with an R2R provider, not a sourcer who might pass your property to a total stranger.

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24 | Issue 31 www.propVA.co.uk

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TOM SUMNER’S STORY: LESSONS FROM THE FRONT LINE HOW A BULLETPROOF MILITARY MINDSET AND STRATEGIC THINKING BOOST PROFITS AND MITIGATE RISK told me I’d never achieve anything. In a weird way, I enjoyed hearing that—it only spurred me on to work harder later in life and prove them wrong.

Other than rugby, boxing, and fitness, there wasn’t much I enjoyed. Directionless, I decided to sign up for the military, joining the army college when I was 16 years old.

Tom Sumner

Co-Founder of Swish Holiday Apartments

I spent many years in the army, touring for over six years in Iraq and taking part in numerous operations in Afghanistan. My service covered the height of the Afghanistan and Iraq wars. I’ve seen combat and faced countless life-threatening situations. But in the end, my time in service is what made me who I am today.

T

If you’re storming a building (as I did during my military career), you need to act strategically, taking every potential risk into account.

What if there’s a hostage? What if there’s more resistance than anticipated?

In the last issue of Blue Bricks Magazine, my business, Swish Holiday Apartments, was featured, showcasing how my team and I are revolutionising the holiday let scene.

This time, I’m sharing my personal journey from the military and bodyguarding to becoming a full-time property investor and multi-business owner. I’ll also explain how you can adopt a strategic military mindset to uncover highly profitable property deals that most investors miss.

From Blackpool to Iraq I was born and bred in Blackpool, the same place where I invest today. Like many entrepreneurs, I struggled in school and didn’t do well in my GCSEs. Teachers regularly 26 | Issue 31

Learning to Be Aggressively Calm I’ve been shot at, bombed, and seen team members killed while serving abroad. In those situations, you can’t afford to panic. You have to be aggressive yet calm.

Though less dramatic, it’s the same in property and business. Things go wrong, emergencies happen, and you have to deal with them quickly.

I see people get irate over the pettiest things and panic over nothing. In the military, you develop a solutions-based mindset and learn that there’s always a way to remedy a situation. But you can only find that remedy with a calm and clear mind.

he military created my mindset. It taught me structure and the importance of choosing the right strategy and approach.

As an investor or developer, you need this same strategic approach to risk. You need a clear plan for buying and exiting a project, along with preparations for both the known and unforeseen risks that could arise at any time.

your daily routine to the way you analyse deals. You also need to find the simplest way of doing things (i.e., the most efficient way).

Above all, you need to maintain a high standard in everything—whether it’s a refurbishment project or the service you expect from your team to deliver a project.

That being said, there are some situations we simply can’t control. My approach to life is this: if you can’t change something, there’s no point stressing over it.

Learning to Walk Again

A picture of Tom and his squad abroad

I served in the military for 10 years before facing a life-changing injury that hindered me from continuing my service.

Adopting a Military Mindset The military taught me structure, and it taught me to have high expectations.

Everything—from your uniform to your weapons—had to be immaculate. Nothing less was acceptable.

At the same time, the military emphasised simplicity. Everything is basic but systematic, which is why UK forces are so efficient.

I’m thankful to the military for the lessons it taught me. In many ways, the exact principles outlined above translate perfectly into the world of property.

You need structure in everything you do, from

A picture of Tom when he was working in close protection

bluebricksmagazine.com In 2007, I had a severe accident that left the right-hand side of my body paralysed. The doctors said there was a high chance I’d never walk again, to which I said, “f*ck that.”

It took me four months of continually pushing myself, doing leg exercises, and trying to walk, but eventually, I was able to do it. There was still some healing needed, and even today, I have problems with my right knee, but I can walk and run as normal.

It’s all about mindset, discipline, and pushing through. More importantly, it’s about self-belief and believing that you can achieve anything. Without that mindset, you never will.

From Soldier to Bodyguard My injury prevented me from serving in the military in the same way I did before. So instead, I transitioned into close protection (also known as bodyguarding) for private clients in the UK and private military companies overseas. It offered the same discipline and structure, so it was a logical step that many ex-military people made.

I travelled to Africa and undertook training in Special Weapons and Tactics (S.W.A.T), high-level medical training, advanced driving, and hand-to-hand combat before transferring to Iraq. There, I worked for some of the world’s largest oil and gas corporations, protecting sites from potential attacks and escorting ultra-high-net-worth individuals (UHNWIs) through dangerous areas in the region.

The contracts I worked on were worth billions to the oil companies, so it was big stuff, working with some serious people!

Learning from UHNWIs: Time is Everything When I was dealing with the heads of these firms—often billionaires—I realised that they were different. They were clean and cutthroat. You could tell they were successful just by their mannerisms.

But the number one thing I learned from being around them is that time is more valuable than money. It’s all about knowing your worth, and to the people I worked with, their time was everything. That’s what sets apart the successful from the ultra-successful. At the end of the day, time is the one thing you can’t make back.

A recent photo of Tom’s new build site mental health specialist. After I told him what I’d experienced, his exact words were, “I don’t know what to say.” If someone senior in the NHS is telling you that, it’s hard not to feel worried!

Eventually, I was referred to a specialist in cognitive behavioural therapy (CBT), who helped me work through the traumatic moments.

We went over the experiences, relived them, and compartmentalised them so they no longer negatively affected my mind.

My message here is this: even the strong struggle. We all have our battles and demons. If you need help, speak to someone. Nothing I’ve achieved would have been possible if I hadn’t talked to someone about how I felt. You are your greatest asset, so look after yourself.

The Creation of Swish Holiday Apartments I won’t write much about Swish, considering it was the main feature of the last issue. But now that you know more about me, it might make sense why we created such high-end apartments in Blackpool—a place that’s not exactly known for luxury.

Transitioning into Property

Both people close to me and strangers online questioned my sanity when my partners and I announced our plan to build luxury holiday lets in Blackpool. But in the end, it worked.

I was paid well in this job, earning upwards of six figures. When you’re out there working, there’s nothing to spend your money on, so you end up building significant savings. I used that reserve to invest in the UK property market, slowly building a portfolio back home.

People often talk about occupancy rates. My theory was that 50% occupancy at £500 a night was better than 100% occupancy at £50 a night. It worked even better than that—we’re now almost at 100% occupancy most of the time, with bookings into late 2025.

When I was back in England between jobs, I’d refurbish my properties myself. That hands-on experience taught me so much about renovating houses. I’ve always been obsessed with learning and self-development, so alongside the refurbs, I was also taking fire safety courses and other qualifications to learn as much as I could.

Swish is a real-life example of how the military mindset applies to property. High standards, self-belief, and thinking outside the box can lead to huge success.

An old friend of mine saw what I was doing and asked if I could help him with his project. He was developing a housing estate and needed help creating structure and a logical approach. It was a big project, but with self-belief, we pulled it off. That success propelled me to leave my job and go full-time as a property investor.

I’m not saying you should jump straight into buying hotels. Believe in yourself, but never take on more than you can handle. You need experience and the right people around you to succeed.

The only thing that held me back after that was my mental health.

Mental Health- Looking After Your Most Important Asset I went through trauma both in the military and as a bodyguard. I’ve seen friends die and witnessed some horrific scenes.

In the jobs I had, it was almost frowned upon to talk about what you’d seen or how you felt. The attitude was that you just needed to “crack on” and get on with it. That mindset has led to countless people—including some of my close friends—taking their own lives.

I didn’t want to come home and burden my family with what I’d experienced. I didn’t expect them to know how to help me either.

Knowing I needed help, I spoke to my doctor and was referred to a

Here’s an example of the attention to detail Tom puts into each design 27 | Issue 31

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Tom’s new projects in development

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Example photos of Tom’s apartments

“NEVER WASTE TOO MUCH TIME ON A DEAL. IF IT WORKS, IT WORKS. IF NOT, MOVE ON.” In this age of social media, you see the highlight reels of successful people, but you don’t see how they got there—the heartbreak, the losses, the time it took. Persistence is key. Play the long game, and success will come.

Diversification: Futureproofing Your Property Portfolio

then switch to long-term finance via a bank, leaving none of your own money in—or even using none of your own money at all.

It’s equally important to have a clear strategy for how you’ll make money from your investment in the short, medium, and long term.

Take the block of apartments I mentioned earlier:

The COVID outbreak taught us how unexpected situations can suddenly throw us into turmoil. For me, it also highlighted the importance of having a diverse property portfolio. I know people who invested solely in rent-to-serviced accommodation (R2SA) and lost their entire portfolios overnight.

Once refurbished, I’ll generate rental income from the existing apartments.

Having a mix of commercial property, buy-to-lets, multi-unit apartment blocks, and other investment types saved my a*se.

Finally, the refurbishments will immediately add value, increasing my capital growth.

The only way to build diversification in your portfolio is to know and understand different investment strategies. Even if we never face something as extreme as a pandemic again, there’s always the risk of changes in government legislation. One of the ways to diversify your portfolio is with the right strategy.

By combining multiple strategies—whether for finding deals, structuring funding, or generating returns—you can unlock opportunities that others might overlook.

Strategy: The Key to Success in Property

“If you find a deal, make it better. If it’s not a deal, make it one!”

People struggle to find property deals because they look at everything through the lens of a single strategy. However, the best deals often combine multiple investment strategies into one opportunity.

“Never waste too much time on a deal. If it works, it works. If not, move on.”

For example, I’m currently purchasing three apartments with land from a motivated seller. Because the seller is motivated, I’ve negotiated certain agreements.

I’ve also identified that there’s space on the adjoining land for two more apartments or a bungalow. My agreement is conditional on securing planning permission for this, along with a few other details.

Once I achieve planning, I’ll title split the existing building from the land and sell the land with planning permission for a higher value.

This will bring in an extra £60,000+ profit.

You can also apply strategy to funding. For instance, you could use short-term lending from a private individual to fund the refurbishment, use a private lender or individual for the purchase of the building, and

The property’s prime location means it’s likely to appreciate in value over the next five years.

A few pieces of advice I give frequently are:

Buying a Property is Like Breaching a Building As I mentioned at the start of the article, in the military, before breaching a building, we always needed a clear strategy and plan. For example, we might develop five different approaches, each broken down into precise steps.

It’s the same when you buy and renovate a property—you need a step-bystep approach. How will you approach the vendor to negotiate the deal?

How will you structure the purchase to suit your goals? What type of finance will you use? Can you avoid paying stamp duty?

Just as there are multiple ways to storm a building, there are multiple ways to make a property deal work. If it doesn’t stack up as a buy-to-let, could you flip it for a profit? Or perhaps use it as serviced accommodation?

At the end of the day, it’s all about reducing risk while maximising opportunity.

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Using Options to Mitigate Risk

The Figures:

It can be hard to tell from a Rightmove listing what will and won’t work. For example, you might have a vision for building or converting a property, only to find during due diligence that planning permission isn’t possible.

Purchase Price:

£245,500

Refurbishment Costs:

£105,000

Legal and Professional Fees:

£6,000

Buying a property on an option agreement is one way to mitigate risk.

An option is an agreement that gives you the legal right, but not the obligation (if structured in the correct way), to purchase a property for a pre-agreed price within a specified timeframe. During this period, you can seek whatever variable of structure you like to enhance the profit before the completion takes place.

With an option, you can apply for planning permission or investigate whether the property qualifies for permitted development (PD) rights.

You can also assess whether a Title Split—dividing the property into multiple units—is viable, and if the above doesn’t satisfy your agreement, then you can step away from the deal.

Contrary to popular belief, you don’t need to find off-market properties to use option agreements. My last few deals were all sourced from Rightmove. This is why understanding multiple investment strategies is so important—it helps you identify opportunities that most people overlook.

Finally, don’t waste too much time on a single deal. There’s an abundance of land and far too many unoccupied properties in this country. If one deal doesn’t work, move on to the next.

An Example of Options in Action I used an option agreement to secure the purchase of four self-contained apartments and a commercial retail shop, now generating £37,000 in annual rental income.

When I found the property online, it was in poor condition, and the vendor was asking too much, which is why it hadn’t sold. I saw the potential to add value through refurbishment, increasing rental income, and reducing mortgage costs by splitting the units. This process transformed the property from a semi-commercial setup into individual units, significantly lowering lending costs.

Private Short-Term Finance Interest Costs (6 months): £2,625 Total Expenditure:

£359,125

Gross Development Value (GDV) of Individual Units:

£540,000

End Value of Commercial Unit:

£70,000

Uplift in Value:

£180,875

Gross Annual Rent:

£37,000

My Final Advice—Believe in Yourself People often ask me what my end game is. The truth is, if I wake up tomorrow and no longer enjoy what I’m doing, I’ll stop. Money is a by-product of success, but if you’re not enjoying something, don’t do it. Life is too short to spend it on things you don’t love.

I have a nice home and a good life. If I wanted, I could retire tomorrow.

The reason I don’t is simple: I love what I do.

That’s only been possible because I believed in myself—even when others didn’t. It’s also because I stay in the right environments. I truly believe that if you hang around five millionaires, you’ll become the sixth. You need to be in a growth-focused environment, constantly pushing your boundaries.

I’ll be blunt. A lot of people talk a good game. They’re great at saying what they ‘want to do’ or ‘will do’, but they never take action. Being in the right environment means being around action takers. I lead by example and walk the talk. Let’s face it, there are some people out there who offer ‘education’ who can’t say the same thing.

Before making my offer, I built a strong relationship with the vendor, who had been introduced by the agent. My advice? Be transparent to manage expectations and understand the seller’s needs—it’s the key to crafting creative deals they’re more likely to accept.

You also need a clear vision and goals. Your goals must be measurable. For example, if your aim is to become a property millionaire, and you’re not there yet, how will you achieve it? What steps will you take, and in what timeframe?

I funded the deal using investor finance, combining short-term funding for the refurbishment with long-term finance to hold the property.

Although I have my own capital, I prefer private finance as it keeps deals running smoothly without relying on slow-moving banks.

Ultimately, you’re the only person who can change your life. Your future and your success rest entirely on you.

The vendor accepted my below-market offer, but the real uplift came after the purchase. A contract ensured they couldn’t pull out within 12 months. During that time, I legally separated the units and completed a full refurbishment, benefiting from planning permission already granted.

I’ll never stop being active in property. As of the writing of this article, I have multiple projects, including another hotel, buy-to-let purchases, large renovations, apartment block purchases, and land purchases underway.

Most people are taught to look for below-market-value deals, but I teach alternative methods where the gains are much higher. Of course, if you find a below-market-value deal, that’s great—but like moths to a flame, that’s where everyone else is looking. I create most of my deals through creative purchasing strategies.

Some of my recent deals have made me over £250,000, thanks to my knowledge and creativity. This deal, in particular, could be sold for a substantial profit, or if I were to develop it further, the returns would be even greater.

It’s no surprise that the people I work with are successful. When you combine my belief system with actionable knowledge, there’s nothing that can’t be achieved. I now teach my mentees how to structure similar deals with little or none of their own money. I also provide ongoing support to ensure their deals are viable, transforming their confidence.

Giving You the Strategies You Need

But like I wrote above, I only do what I do because I enjoy it. Over the years, I have found great enjoyment in helping others grow their businesses and property portfolios with out-of-the-box thinking.

I have been working with people for a while now, showing them how to build serious wealth through assets, enhance their investment strategy, and learn techniques that will help them find and develop property deals that even the most experienced investors miss.

If I can help you with your business, mindset, or property journey, then contact me using any of the information below.

Thomas Sumner Beyondpropertytraining or tommysum7 Beyond property training Info@bbnw.co.uk

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Tax Specialists and Accountants High Quality Advice for the Property Sector Accounts preparation

Vat registration and option to tax

Annual Tax return preparation

Vat preparation and advisory

CGT return preparation

Group structures / restructures

Tax planning / advisory

Bookkeeping

Tax Investigations

Payroll

Voluntary Disclosures

Financial planning

Registered Company Address Frenkel House, 15 Carolina Way, Salford, Manchester M50 2ZY

Registered Company Address: Enquiries: Frenkel House, 15 Carolina0808 Way, 169 9090 Salford, Manchester M50 2ZY enquiries@equatas.co.uk

Web: www.equatas.co.uk

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MYTH BUSTING SIX COMPLIANCE MYTHS INVESTORS AND SOURCERS NEED TO KNOW TO PROTECT THEIR CAPITAL

You are legally considered an estate agent if you:

Tina Walsh CEO of NAPSA

A

fter working in the property sourcing sector for over 12 years, I know and often see or hear of examples daily where the advice provided in courses, via social media, WhatsApp, Facebook groups, as well as in blogs and articles, is often at best poor, but at worst just wrong!

You could argue that those people who post the comments and write the blogs and articles believe what they write is accurate, and they think they are providing useful information— or at least you would hope they are.

The problem arises when that advice, guidance, or comment is inaccurate or completely wrong and relates to legislation, regulation, or the standards required to be met by professional supervisory bodies.

Then, those who receive that information and believe it are in danger of not just failing to meet standards but breaking the law and risking fines as a result.

So, let’s bust some myths together and spread the word! Here are my top six myths:

Sourcing Agents are not Estate Agents.

Sourcing agents are considered to carry out what is known as ‘Estate Agency Work’ and as such are ‘regulated’ by everything that high street estate agencies are.

It may be useful to have to hand what is considered to be the definition of ‘Estate Agency Work,’ as updated recently by the National Trading Standards Estate and Letting Agency Team (NTSELAT), who describe estate agency work as being…

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Here is a list of the main ones to pay attention to:

Have a business that deals with people who buy or sell freehold or leasehold properties in the UK, including commercial and agricultural properties.

Estate Agents Act 1979

Send out property details and arrange viewings.

Business Protection from Misleading Marketing Regulations 2008 (BPRs)

Offer advice to potential sellers or buyers.

Estate Agents (Accounts) Regulations 1981

Get enquiries from potential sellers or buyers, which you pass on to clients.

Consumers, Estate Agents and Redress Act 2007

Have a business that introduces buyers or investors to a ‘property deal’; also known as property sourcing. With the recent amendments made to this definition, and now with the direct mention of ‘property sourcing,’ there can be no argument that the sourcing and deal packaging sectors are covered!

But wait a minute; what if I am just an ‘Introducer’ and not a deal packager or sourcing agent? Well, yes, you guessed it, that is covered in the guidance too, but it is referred to as an ‘intermediary.’ You can only be an intermediary if you: Only pass on the seller’s information to a prospective buyer (or in reverse, of course).

Only provide a way for the seller and buyer to contact one another directly, for example, online.

Don’t offer any advice to a seller or buyer, such as preparing property details, photographs, or an EPC. If you do anything that an estate agent would do, you cannot claim to be an ‘introducer/ intermediary!’

There Are No Specific Regulations or Legislation for Sourcing Agents and Deal Packagers As we established in Myth One, sourcing agents and deal packagers are carrying out ‘estate agency work’ and therefore must adhere to regulations and legislation.

There are several pieces of legislation and regulations that affect the estate agency sector, and therefore sourcing and deal packaging.

You must have a good working knowledge of these regulations, including what they are, how they may affect your business daily, and what measures you need to put in place to ensure compliance.

Consumer Protection from Unfair Trading Regulations 2008 (CPRs)

Consumer Rights Act 2015 Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 Companies Act 2006 The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Data Privacy Act 2018 The Energy Performance of Buildings Regulations Here is where to find the NTSELAT guide on Estate Agency legislation:

Scan me Here is where to find the NTSELAT guide on Estate Agency Legislation

You Can Legally Co-Source with Another Agent Until You Can Afford to Be Compliant The major issue with this piece of advice is that both agents involved in a property sale/purchase transaction MUST BE FULLY COMPLIANT—there is no exception, exemption, or ‘halfway house’ option.

bluebricksmagazine.com So, why is this the case?

If you think about it logically, a sourcing agent or deal packaging company’s insurance, redress, Information Commissioner’s Office (ICO) and HM Revenue and Customs (HMRC) registrations are for that company and its employees (if a sole trader, just that person).

The term employee means the definition by HMRC, where times of work, hours of work, and results are heavily controlled. If you run your own company and take responsibility for its success or failure, you’re NOT employed! https://www.gov.uk/employment-status To make this even more dangerous, the vast majority of property sourcing and deal packaging agents in the UK operate at best partially compliant, at worst, completely illegally. Due to poor advice and training, most of them are completely unaware.

We are now also seeing the development of platforms that claim to sort out your compliance for you or allow you to join their platform so that you don’t need to have any compliance in place.

These ‘platforms’ available to sourcing agents claim that you can join them and sell your deals—some of which claim that their ‘compliance’ covers you, or they set it all up for you, while others claim that you don’t need any compliance when working with them.

Of the cases that have been brought to the attention of the National Association of Property Sourcing Agents (NAPSA) and its enquiries with the supervisory bodies, including HMRC’s Anti Money Laundering (AML) Team, that is NOT the case!

Sadly, any sourcing company or deal packager that has joined such a platform, even if you have never sold a deal through it, is at serious risk of being fined should HMRC or any of the other supervisory bodies investigate.

Myth: If You Don’t Handle Cash, You Don’t Have to Register with HMRC for AML Supervision The money laundering regulations cover a large variety of sectors, from estate agents, solicitors, accountants, art dealers, and auction houses to gambling businesses.

Not all of them handle cash as a business but are still required to register for supervision.

It makes no difference that you don’t take a deposit or reservation fee upfront, or that the solicitor handles those fees for you.

The handling of cash is not a prerequisite for the requirement of money laundering supervision registration.

Failure to understand and follow this could lead to a heavy fine being issued by HMRC.

Myth: You Can Take a Reservation Fee or Deposit and Keep It in Your Business Account There are very strict rules about what are known as ‘fees upfront,’ when that fee is taken by an agent prior to the exchange of contracts and is stated to be ‘refundable.’ When it is stated that it is refundable, it does not belong to the agent, even after payment, as it could be refunded to the client who paid it.

It is often stated that you can simply set up a standard second business account and use that as a client account. However, you guessed it: No, you can’t!

If the reservation fee or deposit is in part or in full refundable, it must be held in a ‘Client Account.’ The Client Account must have appropriate Client Account Insurance in place.

A lot of agents are turning to those newer banks that only operate online, such as Starling or Monzo. I can tell you now that, as far as we are aware, none of these banks offer client accounts and, in fact, state clearly that their accounts are not to be used for that purpose.

Sourcers and deal packagers need to think of other ways of working, rather than taking refundable fees upfront! Here is a link to the NTSELAT guide on Estate Agency: How to Handle Client’s Money

Scan me Here is where to find the NTSELAT guide on How to Handle Client’s Money:

Myth: Property Sourcing or Deal Packaging are Low-Knowledge, Low-Cost, Easy-Entry Strategies to the Property Investment Sector Property sourcing or deal packaging are often advertised as low-knowledge, low-cost, easy-to-set-up, and quick-cash courses. But those of us who have been ‘around the block’ a few times know how unrealistic those statements are.

Whichever option you choose, sourcing or packaging, the cost of setup and running will NOT be zero. You will not have cash in the bank in a couple of months (unless perhaps sourcing rent-to-rent deals), and there are definitely knowledge requirements if you want to have a successful business.

Your insurance and registrations will cost, and you must have professional indemnity and public liability insurance.

You will need your Anti Money Laundering supervision registration, plus possibly Data Protection registration (to be on the safe side). You will need your clients’ contracts, and if you sell ‘off-market’ properties, your own compliance and process will need to be reviewed and updated regularly.

You will need to stay updated on any changes in legislation, including new legal requirements or adjustments to existing regulations. Not to mention, ongoing professional development and networking will ensure that your business stays ahead of industry trends and compliant with all rules and regulations.

Property sourcing and deal packaging are far from being easy, low-cost, or low-knowledge strategies.

They require hard work, careful planning, and a strong understanding of the legal and regulatory frameworks surrounding them. But with the right approach, compliance, and business acumen, they can offer rewarding opportunities for those willing to invest in their education and the proper setup of their business.

Final Thoughts Understanding the legal landscape of property sourcing and deal packaging is crucial for protecting your business, your reputation, and your capital.

These myths—whether it’s about how sourcing agents are regulated, how to handle deposits, or what insurance you need—are often perpetuated due to ignorance or misinformation.

As property professionals, it’s important to seek out reliable, accurate guidance, and keep yourself informed about the latest regulations and best practices.

The consequences of non-compliance can be severe, but with the right knowledge and resources, you can build a successful and compliant property sourcing business that thrives in the long term.

Let’s work together to challenge these myths, share knowledge, and make the property sourcing industry a safer, more transparent place for everyone.

Contact us www.napsa.org.uk 33 | Issue 31

Defending Landlords and Letting Agents Facing Enforcement Action by Councils and Rent Repayment Orders

by Tenants Advice, Representation, Appeal and Advocacy for Housing Financial Civil Penalties

Deposit Protection Claims

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A

fter more than 15 years if experience in HMO investment, one of the most valuable aspects of my investment jounrey has been learning from others’ experiences.

35 | Issue 31

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36 | Issue 31

December 2024 | Market Update

Market analysis

Over the past year, UK house price growth has been uneven, with standout performances in areas like Rochdale and Swansea - up by 6.6% and 4.8%, respectively.

Northern towns are currently leading the way in both capital growth and rental yields, offering compelling prospects for investors focused on both capital

North East

appreciation and income. Rochdale, Bolton, and Oldham stand out with strong

1.7%

one-year growth and substantial five-year returns, highlighting ongoing demand in these areas.

This shift suggests cooling demand or affordability constraints in specific

Yorkshire and Humber

areas, contrasting with the steady growth seen in parts of Wales and the East

4.4%

Midlands.

North West

4.6% East Midlands

West Midlands

2.1%

2.6% East England

London

1.4%

1.4% South East

South West

1.6%

0.8%

Regional house price data credit HM Land Registry.

Local data and yields calculated using PropertyEngine analysis of these areas with data from the major portals and HM Land Registry sold price data.

For more info on how these numbers are calculated, visit propertyengine.co.uk/bluebricksdata

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LEAVING THE 9-5 HOW A CORPORATE CAREER CAN SET YOU UP FOR SUCCESS AS A PROPERTY INVESTOR

T

he hardest part of leaving a corporate career is that money becomes a drug. You get hooked on the lifestyle and the sense of security.

Whether you book time off or don’t push yourself as hard as you can, that lump of cash still lands in your bank account at the end of the month, no matter what.

Now, compare that to running your own business or relying on income from your property portfolio. Suddenly, you’re entirely responsible for everything that goes right and wrong. If you don’t put in the effort, you feel it—financially and otherwise.

When you see it written down, you might wonder why any of us choose to steer our own ship. But after a lifetime in the corporate world, I knew two years ago that I was ready to take the leap. I wanted to take control of my future and carve out the time to live life on my terms.

In this article, I’m going to share the lessons I’ve learned along the way—and show you how a corporate career can actually set you up for success as a property investor.

If the Corporate Life is Good, Why Leave?

Writing this, the corporate life almost sounds appealing.

Working in IT sales, I wasn’t stuck in a job I hated, and life was comfortable. I’d worked my way up the corporate ladder, earning a nice income, managing teams, and still having enough money left over each month to invest in buy-to-lets.

Patricia McIntosh Property Investor

But I think what drove me away was the same spark that fuels most entrepreneurs. It’s that nagging question: “Could I do this myself?” I also knew deep down that no matter how many 60+ hour weeks I put in, redundancy was always a possibility. I wanted control. I wanted freedom. And that’s why, despite the comfort, I decided to take the leap in 2022.

However, just before I left, I set up three businesses: The first was a Limited Company created to expand and manage my buy-to-let portfolio.

The second was a property and block management company, which now manages 72 apartments across two locations.

Finally, I ventured into serviced accommodation (SA), catering to short-term stays.

Tip for Leaving Your Job: Avoid Desperation Before you hand in your notice, make sure you have enough money in the bank to sustain you for at least one year. Finding the right deals takes time. If you don’t have enough money to sustain yourself, then you may start to become desperate and chase the wrong deals.

It can be tempting to tell your boss where to go, but take your time, save up, and give yourself the breathing room you’ll need to make smart decisions.

Serviced Accommodation: Corporate vs Leisure In the early days, I initially welcomed leisure and corporate guests but soon realised that corporate guests were more straightforward and easier to manage, feeling like a natural fit from my corporate background.

I prefer contractors as guests because they usually stay longer, often booking a property for a month or two. My longest booking to date has been six months.

There are a few steps I take to ensure I’m attracting the right guests: I research the areas where contractors are coming into the area to work on redevelopment projects.

Patricia’s first commercial purchase via SSAS pension

38 | Issue 31

I don’t allow one-night stays. Guests can only book for a minimum of three nights.

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Building Relationships to Secure Future Long-Term Bookings

What the Future Holds: Commercial vs Residential

Most of my bookings initially come through online platforms. After a day or two, once they have settled in, I reach out to the companies directly.

One of the perks of working in corporate is your employer’s contributions to your pension. This can be a game-changer if you decide to open a SSAS pension, which can be used to fund certain types of investments (though not residential property directly).

Thanks to my corporate background, I have no problem speaking with large or small businesses; I see it as my superpower. I know the jargon to use and the buzzwords they want to hear!

On these calls, I ask a few probing questions, like: “How long are you working in the area for?”

“What is the nature of your business?”

“How many staff are you looking to accommodate?”

Sometimes they will have more staff than my properties can cater for, so I will reach out to other hosts to see if they can accommodate and charge a referral fee. This is a win-win for all parties.

During COVID, my pension took a nosedive.

To take control, I opened a SSAS and used some of it to invest in three industrial units.

After seeing the results of investing in commercial property, I’m seriously considering selling the majority of my residential units and reinvesting the money into commercial.

Here’s a quick side-by-side comparison of two projects I’ve invested in, showing how commercial looks more attractive than a vanilla buyto-let:

Residential Project (Buy-to-Let):

I find that businesses will book their staff for a few days, call to check with them if they’re happy with the property, and then extend the booking. If you can step in at the start, you increase the chance of the company rebooking with you—and by having them book directly, you save yourself those hefty online platform fees!

Purchase Price:

£165,000

Annual Rental Income:

£13,200

Mortgage Repayments (Annual):

£4,380

Advice for Taking the Leap from Employment

Deductions (Maintenance):

£960

Before I round off this article, I want to share some of the core lessons I learned when going full-time into property. I hope that they help you in your own journey:

Total Costs (Annually):

£5,340

Net Profit:

£7,860

Get educated: If I’d taken the time to educate myself before investing in property, I could have built a stronger, more diverse portfolio much sooner and recycled money from my buy-to-lets more effectively.

Building Insurance: Paid by the landlord (me) External and Internal Repairs: Paid by the landlord (me)

Join communities: In corporate life, you’re surrounded by teams, but self-employment can be isolating. Joining groups of like-minded investors and entrepreneurs has been essential for support, advice, confidence, and growth.

Purchase Price:

£165,500

Annual Rent:

£16,120

Don’t be afraid to ask for help: In the corporate world, it’s often every person for themselves, with everyone competing to climb the ladder. In the property industry, it’s different. There’s enough wealth to go around, and most people are happy to help. It’s a genuinely supportive environment.

Focus: The property world is full of tempting opportunities. It’s easy to get distracted by shiny new investment strategies, each one looking better than the last. Stay focused on your goals and create a clear plan to achieve them.

Commercial Project (Three Industrial Units):

Deductions: None (funded by SSAS) Net Profit:

£16,120

Building Insurance: Paid by tenants Estate and Service Charges: Paid by tenants External and Internal Repairs: Paid by tenants Even with a mortgage, the profit from commercial property is higher, with far fewer headaches!

If you’re not investing in commercial property already, it’s definitely worth considering. Especially with all the draconian policy changes happening in the private rented sector for landlords, this could be an opportunity to pivot or diversify.

Good Luck!

Taking control of your future isn’t easy, but with hard work and persistence, it’s absolutely worth it. If there’s anything I can do to help, please don’t hesitate to get in touch.

My Contact Information Email: admin@prhpropertyservices.co.uk Instagram: @_patriciamcintosh An exterior shot of Patricia’s fully tenanted commercial units

39 | Issue 31

SPOT THE DIFFERENCE?

Two landlords walk into a plumbing merchant.

Since 2011, LNPG has harnessed contract pricing exclusively for UK landlords.

The rst spends half an hour utilising the latest sales, psychological, and interrogation techniques to get the branch manager down to the best possible price.

We’ve given thousands of members access to everything from boilers, bathrooms, and kitchens to electricals, roof windows, and even quartz worktops for a fraction of the cost.

The second then gets to the till. “I’m with LNPG” he says and ashes his membership card. And like magic, the price comes down well below what the rst could have ever imagined.

This means better properties, higher capital returns, and longer maintenance cycles for less.

But it’s not magic – it’s the power of contract pricing.

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B-HIVE LIVING

HOW A RELENTLESS FOCUS ON CUSTOMER EXPERIENCE AND TENANT WELLBEING CAN TURBOCHARGE YOUR PROPERTY SUCCESS

B

-Hive Living is a multi-award-winning developer and operator of co-living properties based in Oxfordshire and the winner of the 2024 HMO User and Community Experience Award for the second year in a row. In this interview with co-founders Williams Johnson and Silvia Grattieri, we’ve explored their journey and how they are redefining service standards by placing their users and community first to build market differentiation.

Fuelled by Purpose, Built for Impact

Creating with the End-User in Mind: Some Inspiration As a property business, user and resident engagement strategy must start with the physical space. Millennials and Gen Z—in other words, those aged 18-45—are now the largest consumers of rental housing in the UK. This new generation of renters will demand more quality, flexibility, and technology than ever before because they want a rental product and experience that matches their lifestyle.

Once a young professional couple renting in London, we experienced first-hand the harsh reality of the UK rental market. At the time, a staggering one in every three rented properties was deemed unfit for habitation.

Before building our first co-living property, we conducted various focus groups and extensive research to ensure we intricately knew our audience, and we learned that empowering residents to make sustainable choices was key to our audience.

Instead of feeling deflated by these statistics, we quickly recognized the significant market opportunity and prospect for impacting people’s lives.

As a result, we started to actively seek such solutions and installed an app-based heating system in our properties that gives each of our residents the ability to set the thermostat of their room to suit their routine and lifestyle remotely from wherever they may be.

Out of this ambition, we created B-Hive Living in 2017 to challenge the old convention of rental properties and a service culture that reinforced lifestyles that make us frustrated and unhappy.

The UK rental market has doubled in size over the last decade, and the resulting chronic undersupply has given rise to a culture of disregard for the wellbeing and convenience of users, as renters have little choice these days.

Williams Johnson & Silvia Grattieri Founders of B-Hive Living

This is how we redefined the standard approach to co-living. We hope that by sharing examples of what has worked for us, and how it’s positively impacted our tenants (and profits), we give you some inspiration and ideas for your own property projects.

We also discovered that many wellness-related features could be integrated into our home at little or no extra cost. For instance, offering dimmer switches instead of just on-off lights allows for personalisation.

Optimising daylight through thoughtful building orientation, larger windows, and skylights significantly impacts mental well-being and productivity. It may seem simple, but we are puzzled as to why more people don’t implement these strategies.

People Will Never Forget How You Made Them Feel The legendary American poet Maya Angelou once said, “People will forget what you said. People will forget what you did. But people will never forget how you made them feel,” and this deeply resonated with us.

The community experience defines HMO and co-living as a use class and sets us apart from other rental strategies, so it’s important that we as an industry get this right. It’s also business common sense—in fact, 80% of customers say the experience a company provides is as important as its products and services.

Eight years on, we’re proud to see our residents consistently cite the quality of our living spaces and the calibre of our community as the primary reasons for choosing us. This is powerful, since 76% of UK renters believe that a sense of community is important to them because it impacts their quality of life.

When asked why, UK renters said that community makes them feel safe, less lonely, and able to rely on others in times of need. For us, a focus on our end-user is a way of creating a sustainable and profitable business underpinned by a hard-to-replicate competitive edge.

Application of biophilic design in one of B-Hive Living’s communal spaces

41 | Issue 31

bluebricksmagazine.com residents feel connected to their peers, and 73% report an improvement in their overall health and well-being after moving in.

These business metrics matter because they make our strategy (and your strategy!) highly defensible, as competitors can imitate any aspect of properties and interiors but will find it very hard to replicate the culture and community experience created.

How You Can Elevate Your Rental Experience Today If you wish to boost the experience of your users, maximise your income, and strengthen the resilience of your rental portfolio, here are some actionable tips: Re-evaluate the design of your properties: Explore ways to enhance the comfort and convenience of your communal spaces or introduce biophilic elements. Simple changes, like adding plants or creating inviting lounge areas, can significantly impact tenant engagement.

Williams Johnson - co-founder and director of B-Hive Living, collecting the award for the world’s best User and Community Experience at the global Co-living Awards 2024 in Amsterdam for a second consecutive year

The Impact of Biophilic and Circular Design Biophilic and circular design has also become a key cornerstone of our interior design approach. To create more productive and healthy environments through biophilia, we started by setting a ratio of built area to natural outdoor spaces of 2:1.

Our gardens are large and fully equipped with amenities such as outdoor gyms, games areas, Asian hammock stations, fire pit areas, and a community vegetable patch where residents can plant their own herbs and nutritious ingredients.

Whenever possible, we embrace circular design by repurposing materials used in construction to build furniture and accessories. These are simple interventions that landlords can make, resulting in a big impact on their users.

The Profitable Benefits of Putting Customers First A relentless focus on residents’ well-being and experience ensures happier and more engaged customers, which equals higher satisfaction, better renewal rates, sustained demand, lower operating costs, and brand loyalty—all clearly reflected in business metrics and achievements.

You’ve probably heard before that it’s less expensive to keep a customer than it is to get a new one, and it’s true. This stability enhances cash flow, reduces costs associated with tenant turnover, and hopefully proves that valuing your tenants, keeping them engaged, and growing their lifetime value has the greatest return on investment (ROI) of any type of marketing.But, underlying all of the above, the performance metrics that really matter to us are that 93% of our

B-Hive Living's spacious shared spaces encourage socialising, making connections, and productive work. Technology is used to boost connections within the community and enable efficient communication.

42 | Issue 31

Get to Know Your Customers: Before you can build a user experience that people love, you have to get to intricately know your customer: who they are, what motivates them, and their pain points. Take every opportunity to ask questions (and really listen) to build a better understanding of how you can best serve them.

Foster Community: Success starts by curating the right community.

Set criteria for the type of user you want and actively market for them.

Then host monthly events or create online platforms for residents to connect. Even small gatherings can enhance their sense of belonging, and community equals market differentiation.

Stay Flexible: The property market is dynamic. Regularly assess performance, seek feedback, and stay updated on trends to refine your approach continually. Be open to introducing systems and technology, and learn how to make it relevant for your business.

Change is inevitable, but transformation is a choice. The competitive landscape of the rental market is changing fast, and we invite you to get creative, be bold, and build long-lasting connections with your residents.

At B-Hive Living, we are passionate about helping others elevate their lifestyle through property. If you feel inspired by what you’ve read, you can download our Customer Experience Guide, where you’ll learn more about trends and strategies to boost your user and community engagement. Or simply reach out if you wish to explore ways of working together.

By focusing on innovative design, addressing tenant needs, and fostering community, you can create a more sustainable and profitable rental business that better suits both your customers and your long-term business goals.

OUR DETAILS:

www.b-hiveliving.com/ info@b-hiveliving.com bhiveliving

Will your next investment be based on facts or fiction? propertydata.co.uk

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BUILDING YOUR ‘POWER TEAM’ HOW TO CHOOSE THE RIGHT PEOPLE FOR YOUR PROPERTY PROJECTS

Key Lesson

The Wrong Team Member: A Domino Effect Let’s use a hypothetical example of what can happen when you pick the wrong person to join your team.

You’re in the middle of a major renovation project. The project manager you’ve hired appears competent in the initial meetings but starts to miss deadlines, ignore key details, and fail to communicate effectively with the tradespeople.

At first, it seems like minor inconveniences, but delays begin to pile up, coordination falls apart, and costs spiral. Before you know it, the entire project is off schedule and over budget—all because the project manager wasn’t up to the job.

Scott Williams

Founder of The Property Developer Show

Having run a finance brokerage and invested in property, I’ve experienced both sides of the fence. I’ve been part of someone else’s power team and built many of my own.

Here’s the reality: building your power team, like any successful team, requires time and nurturing. You can’t expect the first service provider you speak to to be the best or most suited to your needs. Imagine hiring the first candidate who walks through the door simply because it’s convenient. You’re setting yourself up for failure.

So, how do you identify the right people for your power team? Let’s look at the key indicators to help you determine whether they’ll be a great addition or a potential risk to your property project.

Who Do You Need in Your ‘Power Team’?

If you’re converting, developing, or buying a property, your power team may include the following:

.

This is not an uncommon scenario. The truth is, a weak link in your team can cause a domino effect, disrupting every aspect of your project. The wrong solicitor can drag out legal processes, the wrong broker might not secure the best finance deal, and a careless surveyor could miss a crucial structural flaw, leading to unexpected repair costs down the road

How Do You Avoid the Pitfalls?

The harsh reality of property development and investment is that every professional you bring into your power team holds a piece of your success in their hands. If one person underperforms, it can affect the entire project.

So, how do you avoid these pitfalls? It all comes down to due diligence and networking in the right circles.

When choosing someone to join your power team, it’s essential to do your research. This means more than just a quick Google search or a glance at their LinkedIn profile. You need to look into their track record. Ask for references, speak to previous clients, and, if possible, visit properties they’ve worked on.

Finance broker Finance lender Solicitor Estate agent Insurance broker Tradespeople (builder, joiner, electrician, etc.)

Architect Town planner Surveyor Quantity surveyor Project manager Utility consultant You get the gist; the list is long. This is one of the major variable factors of property. You are often dependent on other people pulling their weight, and it only takes a small kink in the armour for things to stop working correctly.

This is why spending time building your power team is a major factor in your level of success.

44 | Issue 31

A Q&A with the Property Elevator Team at The Property Developer Show

bluebricksmagazine.com It’s also helpful to meet potential team members in person—there’s no substitute for a face-to-face meeting when it comes to judging someone’s professionalism and enthusiasm.

Before

Additionally, consider how each team member will work together.

Property development is rarely a solo venture. If your architect and project manager don’t communicate well, for instance, designs may not be executed correctly, leading to costly reworks. Compatibility and clear communication between team members are just as important as individual skills.

What You Should Look for in Each ‘Power Team’ Member Now, let’s take a closer look at some of the key players you’ll need on your property power team and what to look for when selecting them.

Finance Broker: A good finance broker is a pivotal part of your power team. Their role is to navigate the complex world of mortgages, bridging, and development products to find the best deal for your project. A great finance broker will have strong relationships with lenders, understand the nuances of property finance, and be proactive in finding solutions tailored to your needs.

After

Solicitor: A property solicitor handles all legal aspects of your property transaction, from conveyancing to contract negotiations.

The right solicitor will ensure your transaction is smooth and legally sound. The wrong one could cause delays or overlook important legalities that could lead to bigger issues down the line.

Tradespeople: The backbone of any property project. Without skilled tradespeople, even the best designs and plans will fail. Look for tradespeople with a proven track record, strong recommendations, and an ability to work well within a team. If you pay cheap, you usually pay twice. I learned this the hard way—believe me.

Project Manager: Where you can, employ an experienced project manager. This person will oversee the day-to-day running of your project, coordinating between contractors, ensuring the schedule is adhered to, and managing budgets.

A competent project manager is crucial to keeping the project on track. If you’ve never managed a development or project before, please do not underestimate how difficult the task is. 91.5% of projects go over budget or schedule (reference: How Big Things Get Done).

To limit the rate of failure when running your own projects, it’s worth employing a professional. It will save you money in the long run—trust me.

Here’s a before and after image of one of Scott’s projects

Building and Maintaining Relationships Another important aspect of assembling your power team is building long-term relationships with your team members. Once you’ve found the right people, it’s often worth sticking with them for future projects.

Over time, as you continue to work together, these individuals will become more familiar with your working style, your expectations, and your goals. This familiarity can make future projects smoother and more efficient.

That said, don’t be afraid to re-evaluate relationships. If a team member starts to underperform, it might be time to look for a replacement.

However, having an established team that you trust can help you avoid the constant hassle of sourcing new people.

Building a successful property power team is not an overnight task.

It takes time, patience, and a lot of research. However, once you’ve assembled a team of skilled, trustworthy professionals, your property ventures will run far more smoothly.

Your power team will be the foundation on which your success is built—choose wisely. The property market is constantly evolving, and your power team should evolve with it. Whether it’s keeping up with changes in property law, new financing products, or the latest construction techniques, continuous learning is key.

Grow Your Network at The Property Developer Show If you are looking for a good place to start developing your power team, you can, of course, visit the Property Developer Shows. I put the show together for the sole purpose of supporting SME developers across the UK. We have created a platform for the best service providers to meet the best developers. You can book your free ticket at www.propertydevelopershow.co.uk. propertydevelopershow Property Developer Show- The Podcast (Apple and Spotify) That’s us at the Property Developer Show

Property Developer Show 45 | Issue 31

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PROPERTY NETWORKING EVENTS IN AND AROUND THE UK MULTIPLE EVENTS IN THE UK. A FUN, UNIQUE AND INFORMATIVE COMMUNITY FOR ESTABLISHED AND ASPIRING PROPERTY INVESTORS HOSTED BY MARK WINSHIP AND EMILY SMITH.

FULL EVENT DETAILS CAN BE FOUND ON OUR WEBSITE: WWW.NETGAINCLUB.COM

A friendly, interactive, supportive and positive space where you can learn more about property investing and business know-how. Whether you are a property newbie, an experienced property investor, landlord, or property service provider, you will be very welcome.

Location: 589 Southmead Road Filton BS34 7RG For details on future event dates, contact the host: wendy@solutionproperty.co.uk

PROPERTY NETWORKING BRUNCH – LEEDS PROPERTY INVESTORS NORTH EAST IS THE GO-TO EVENT FOR INVESTORS ‘UP’T NORTH’. JOIN A GROWING COMMUNITY OF PROPERTY FOLK AND HEAR FROM INDUSTRY EXPERTS EVERY MONTH.

LOCATION: THE ROYAL STATION HOTEL, NEWCASTLE UPON TYNE TIME: 18:30 DATE: THE FIRST THURSDAY OF EVERY MONTH HOST EMAIL: PETER@AQUALETTINGS.CO.UK

Details About the Event:

Food and a few drinks with property folk in Leeds City Centre. People of all experience levels are welcome.

This is a quarterly event.

Contact me for more information on dates and times.

Host email: carolinetolman@outlook.com

AN INVITE-ONLY NETWORKING EVENT FOR DIRECTOR-LEVEL

•NETWORK •FOOD •MUSIC •DRINKIES

PROPERTY PROFESSIONALS. MORE INFORMATION ON HOW TO

Tickets Available Via eventbrite

HI@BLUEBRICKSMAGAZINE.COM TO REQUEST AN INVITE.

Get ready for Manchester’s newest and most exciting Property Event!

The Alan Manchester

JOIN CAN BE FOUND ON THE WEBSITE, OR BY EMAILING

TIME: 13:30-15:30 WEBSITE: PROPERTYCATALYSTCLUB.CO.UK

bluebricksmagazine.com

The Midlands Investor Networking Group (M.I.N.G) was established in 2016 to bring together professionals in the property industry, including developers, investors, and solicitors. Hosted by Mark Burrows and Vicky Chittock, our monthly daytime events attract up to 100 property enthusiasts.

ONE OF THE MOST VIBRANT AND ENTERTAINING EVENTS IN THE NORTH EAST, THE PROPERTY THING IS HOSTED BY LONG-ESTABLISHED PROPERTY INVESTORS ANTHONY BOYCE AND PAUL MILLION. LOCATION: BLACKWELL GRANGE HOTEL, DARLINGTON TIME: 18:30

Date: Second Monday of every month (No event in August) Time: 10am-2.30pm Website: mrbproperty.co.uk/network-events

DATE: SECOND THURSDAY OF EVERY MONTH LINK: THE PROPERTY THING GROUP (FACEBOOK) HOST EMAIL: ANTHONY@THEROCKETGROUP.CO.UK

OUR VERY OWN NETWORKING EVENT WITH A COMMUNITY OF HIGHLY EXPERIENCED PROPERTY INVESTORS AND INDUSTRY EXPERTS WHO TRAVEL ACROSS THE UK TO SPEAK FOR US. FREE FOR MEMBERS OF BLUE BRICKS MAGAZINE. LOCATION: 5-6 PARK PLACE, LEEDS (YOU CAN ALSO LIVE STREAM THIS EVENT VIA ZOOM).

If you want to rub shoulders with like-minded people, be inspired and share ideas with those who are successful in property, you should attend. An event for all those who are either new to property, or are seasoned investors.

TIME: 18:30 LINK: CHECK OUT ‘NETWORKING’ ON OUR WEBSITE BLUEBRICKSMAGAZINE.COM HOST EMAIL: HI@BLUEBRICKSMAGAZINE.COM

Regional Property Meets is a collaboration project between 5 Alive Networking and local property entrepreneurs designed for property-specific professionals and their wider supply chain to meet and network in a comfortable environment.

Venue: Golf House, Worcester Ln, Pedmore, Stourbridge DY8 2RB Date: Every last Wednesday Website: fivealivenetworking.co.uk

OUR INCLUSIVE COMMUNITY WELCOMES ALL, WHETHER YOU’RE AN EXPERIENCED INVESTOR OR JUST CURIOUS ABOUT REAL ESTATE. OUR IN-PERSON NETWORK EVENTS ALLOW YOU TO ENJOY DELICIOUS FOOD WHILE EXPLORING A RANGE OF PROPERTY TOPICS, FROM TRENDS TO TIPS.

WEBSITE: PROPERTYANDPOPPADOMS.CO.UK

Location: Newport For full details, visit: www.southwalespropertymeet.co.uk

A VIBRANT NETWORKING GROUP IN MORECAMBE HOSTED BY KATIE BANKS AND PETER BAKER. LOCATION: THE MORECAMBE HOTEL, MORECAMBE TIME: 18:30 DATE: LAST WEDNESDAY OF THE MONTH BOOKING LINK: WWW.EVENTBRITE.CO.UK/O/ BAY-PROPERTY-NETWORK-27104233761

bluebricksmagazine.com

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www.p4hb.co.uk 48 | Issue 31

020 4511 4111

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