So if you didn’t have your own company but you’re trying to find a company e.g a costa.. do you contact Costa first to see if they’re interested and what they would pay? So the surveyor bases it not on bricks and mortar value
I should be interested to learn how to buy commercial properties at auction, particularly high street shops and other outlets where the empty premises above the shop can be converted to flats or apartments.
Great video Paul. Just trying to go through the numbers. So there is a mortgage on it of £1.1million. On a repayment mortgage of 15 years. I've no idea what rate you'd get but at 4.5% that's £8,413 a month for 15 years. You make £8K a month in rent and pay out £8,413 in mortgage. Have I missed something here. If I've got my numbers wrong do let me know. I've been trying to analyse every deal I come across. You can blame Abi at Touchstone for that! Are you able to get a better commercial mortgage rate as you have it tennented for 15 years (albeit by yourself). Does that help with the rates and applications?
Well done for thinking for yourself. It doesn’t stack up or make sense. Commercial rates are always higher, on a 15 year repayment he would probably be closer to £9k a month. Owner occupiers on commercials (I believe) can get better LTV but he says he’s split to Opco Propco so it would be a straight investment mortgage. Additionally, I’m yet to find a commercial lender going that high on LTVs at all. Either 60-65% market value or 70-75% of vacant possession value (VP). VP is usually set against either a 90 or 180 VP value. Google will explain better than me. And let’s say that he did get a crazy good valuation and rate (wealthier people tend to get better deals on bigger loans because….life), he is still screwed big time now with rate rises unless he fixed for the full 15 year term…
Paul...Great video sir. I am very interested in commercial property and I came to Doncaster last February for WTP. Since then I have got a BTL into my new limited company. I want to do the following .SA, Deal packaging, and commercial. What would be your advice for what I do next? Buy the comm prop course from your website?
So you have two companies and one company rents from the other company I get that but are you not the MD of both companies so can they not see that you are renting from yourself? I am very interested in changing my life as I been in poverty so so long it’s normal to have no food in the fridge, many thanks again for explaining it in a way it is easy to understand and I want to change my lif
Paul, I have same numbers in my hotel building: 1M invested , 8k rent, but I cannot get valuation for 780K 🤷🏻♀️ 80% is only 614K 96K /annual rent x ca8 years = less 1M I’m I missing something?
The £250k was agreed with the contractor.... it was only an 8 week job, they were paid from the mortgage at the end, legal agreement in place. So it was "only" £50k in....
@PaulSmithTouchstoneEducation Yes I am! My late father used to drive to Monaco from Liguria for the annual Christmas/New Year circus. Personally, I have only seen this on TV. Have you been? Oh, and living in Monaco does not excuse you from adopting European habits!!! 8-))
Hi Paul, been watching your content for a while which i really enjoy and appreciate. Commercial property really interests me. I recently set up a Deal Packaging business and was wondering when im unable to fund or secure a commercial opportunity for myself, would this work as Deal Packaging business and offer to investors? I.E, do investors look for commercial property as their investment strategy and would there be enough of them to build a prosperous business?
I just bought my first ever property and it happened to be a commercial one not by coincidence but by desire. I agree to everything you say and more
Perfect! Delighted for you. Well done
This guy is extremely well self educated gentleman. I've joined touchstone, and it's, it's just something else. Cheers Paul.
Sounds Great - You make it sound so easy and straightforward. I need some of this.
This is great, will join your sessions. Thanks for the lovely content, as always Paul.
You may click here>> shrtlnk.co/ZCvh0
Yes please....I need to see again that video on duneora to understand the Capital Allowances part and the LLP and the SSAS...please
Thank you, Mr. Paul Smith.
Thanks Paul, Very informative
Fab video Paul! Absolutely, Commercial Property all the way
Love these...Touchstone for breakfast sets me up with motivation.! Go Paul and all at Touchstone.!
Love it!
So if you didn’t have your own company but you’re trying to find a company e.g a costa.. do you contact Costa first to see if they’re interested and what they would pay? So the surveyor bases it not on bricks and mortar value
Go for it.. whats the worst?
I should be interested to learn how to buy commercial properties at auction, particularly high street shops and other outlets where the empty premises above the shop can be converted to flats or apartments.
Too good to be true.
Great job Paul I love commercial property I know what you are talking about. Thank you
Great video Paul. Just trying to go through the numbers. So there is a mortgage on it of £1.1million. On a repayment mortgage of 15 years. I've no idea what rate you'd get but at 4.5% that's £8,413 a month for 15 years. You make £8K a month in rent and pay out £8,413 in mortgage. Have I missed something here. If I've got my numbers wrong do let me know. I've been trying to analyse every deal I come across. You can blame Abi at Touchstone for that! Are you able to get a better commercial mortgage rate as you have it tennented for 15 years (albeit by yourself). Does that help with the rates and applications?
Well done for thinking for yourself. It doesn’t stack up or make sense. Commercial rates are always higher, on a 15 year repayment he would probably be closer to £9k a month. Owner occupiers on commercials (I believe) can get better LTV but he says he’s split to Opco Propco so it would be a straight investment mortgage.
Additionally, I’m yet to find a commercial lender going that high on LTVs at all. Either 60-65% market value or 70-75% of vacant possession value (VP). VP is usually set against either a 90 or 180 VP value. Google will explain better than me.
And let’s say that he did get a crazy good valuation and rate (wealthier people tend to get better deals on bigger loans because….life), he is still screwed big time now with rate rises unless he fixed for the full 15 year term…
Agreed, I’m not hot on numbers but those monthly figures don’t stack up favourably after interest tbh
Paul...Great video sir. I am very interested in commercial property and I came to Doncaster last February for WTP. Since then I have got a BTL into my new limited company. I want to do the following .SA, Deal packaging, and commercial. What would be your advice for what I do next? Buy the comm prop course from your website?
Thanks Lee and very well done! If you want to conquer commercial next I think that is a great plan. Good luck.
@@PaulSmithTouchstoneEducationbeat solicitors for check legal docs
So you have two companies and one company rents from the other company I get that but are you not the MD of both companies so can they not see that you are renting from yourself? I am very interested in changing my life as I been in poverty so so long it’s normal to have no food in the fridge, many thanks again for explaining it in a way it is easy to understand and I want to change my lif
Yep. I'm in
You may have got £40,000 back but by getting your property revalued you are most probably pay that on Business rates yearly location depending
Impressed. Thanks.
thank you for watching :)
Love a bit of 40 grand change..!
It would be rude not to!
Yes, tell us more
Yes please.
You may click here>> shrtlnk.co/ZCvh0
Definitely sir 💯
Certainly your deals are in your network if I am in your network, because I have commercial property deals off-market every week.
Yes please
Got lost when he got loan from barclays and paid himself 8k.
Lot's of new concepts I know... thanks for watching
Paul,
I have same numbers in my hotel building: 1M invested , 8k rent, but I cannot get valuation for 780K 🤷🏻♀️
80% is only 614K
96K /annual rent x ca8 years = less 1M
I’m I missing something?
You mean rent £8k per month? How long is the lease? Are there any breaks? Who is the tenant?
So since you live in monoco now Paul are all the property event's online.. and nothing in person ?
We have in-person property wealth networking events :)
I want to hold commercial properties in my SIPP but can't find a provider catering for the small man, all want £1000s in fees. Where can I go?
Try XPS here is URL for SIPP www.xpsselfinvestedpensions.com/ good luck
@@PaulSmithTouchstoneEducation Much obliged Paul, sorry for late reply, saw it today by chance as came to watch it again
How does net zero affect you though? 🤔
I’m very interested
How
Why do you say it’s only 50k in? You said you spent 250K to refurbish. That is cash you had to use
The £250k was agreed with the contractor.... it was only an 8 week job, they were paid from the mortgage at the end, legal agreement in place. So it was "only" £50k in....
In the UK, a figure like 1,200,000 could be written as 1.2m, but NOT 1,2m! This latter is a European way, eg Italians do it that way.
from the man that writes " I should be interested... "
@@anthonycummins1752 Your point being? You DID know that it is I/we should or would? Perhaps not clearly!
I live in Monaco now John! Hope you are enjoying the content.
@PaulSmithTouchstoneEducation Yes I am!
My late father used to drive to Monaco from Liguria for the annual Christmas/New Year circus. Personally, I have only seen this on TV. Have you been?
Oh, and living in Monaco does not excuse you from adopting European habits!!! 8-))
@@johnporcella2375 haha! Yes we went to the Monaco circus this year in January. It was amazing! I would absolutely recommend it.
Lot of to & from for a deal
Hi Paul, been watching your content for a while which i really enjoy and appreciate. Commercial property really interests me. I recently set up a Deal Packaging business and was wondering when im unable to fund or secure a commercial opportunity for myself, would this work as Deal Packaging business and offer to investors? I.E, do investors look for commercial property as their investment strategy and would there be enough of them to build a prosperous business?
Hi Philip, one of our team members can get in touch with you to further discuss this. How does that sound?
@@PaulSmithTouchstoneEducation That would be awesome Paul
how do we go about setting this up?
Yes please.
You may click here>> shrtlnk.co/ZCvh0