Well done, that is a £1000 +vat property course crammed into 17 minutes. And the £187,000 capital allwances on your holiday let well be the icing on the cake. You are a gent
Hi James, what a vid, I am at the 10% mark on my BTL’s so you won’t be too upset with me. The barrier to entry I find with commercial property (other than finding the deals in the first place) is the higher capital required. Could you do a video explaining in detail the finance breakdown of a typical commercial property deal?
Another great video James. The only issue with your ROI calculations on the whiteboard is you didn't add the £30k to £100k you mentioned previously will need to be spent on that house to get it up to the standard. Surely that needs to be added ? I totally get your reasoning for buying it as a way of getting your additional units without planning objections. Keep up the good work.
I enjoy your videos like this, it makes my life and business look so much more simple! 😀 It does give me ideas on eliminating problems by targeted purchases and investments though. The road layout there will be a lot better. Well done Hoff
Yes, love the lesson on this, however surely the return (aim of 10% or 20%) should be of the PROFIT on the rental and not just the turnover? Serviced accomodation may give you a better return % on paper, but will make similar profit than long term rental when all costs are taken into account. The serviced accomodation is a trading business so can't just be shown as a return on the investment. Also, you didn't add in the cost of refurbishment into the maths. You aren't realistically going to get 36k rental on that, or 12k on the garage, without putting in considerably more money, which lowers your return. Or 100k in serviced without a huge spend. I understand the principle, but you seem to be picking the numbers you like the most...
16:10 it'll be interesting to see how a luxury serviced accommodation would work next to an industrial estate, however this is just around the corner from my Dad so who knows I could be brining my family here when you finished!
Hi James, You mentioned using mortgages to increase ROI by reducing cash input. But I'm wondering about all the levers that can affect the PCF/TCI formula. What are the most crucial factors that can make or break an investment's profitability? I'm particularly interested in elements that could unexpectedly decrease ROI, even when using leverage. Can you break down the top 3-5 variables you always consider when evaluating an investment's true potential? Thanks,
This video is not for the average person who has this type of money to spend, sooner have the money in the back and not have all the hassle and stress.
Those are all very basic stuffs which you make sound very important, holy grail and never spoken before!!! Plenty of Noobs here finding this that they have just discovered America with your great acting JS
You said the previous owners sold the house partly because they were moaning about your adjoining business park (presumably the noise), but you plan to turn the house into "high end luxury serviced accomodation" and build another 22 industrial units next door? Seems like the two ventures side by side don't compliment each other well. I'd just turn the house into offices or something.
I'm 3 years into my business and watching your videos gives me a MASSIVE insight what to look for, what to expect etc. I've started to cut down my hours at my full time job to work on my business more, which a year or 2 will be what I do full-time. Keep it up James and thank you for being so transparent 💪
For sure UK residential BTL is a nightmare right now but as interest rates come down it will level out. Best thing is to shift them into a SPV. Nice vid but the investment seems like a hard one to get your money back.
Plus in future the main house and annex can be converted into business use. Such as a day nursery. Which is a nice mix next to a business park, with employees like making just one journey to work/child care destinations.
Great watch - I invest in residential property and believe it can still be leveraged well, but I can see the benefit behind your commercial approach with this property!
I was so expecting you to say it was being turned into another nursery. Will you go the whole hog and do hot tubs, fire pits and a high level of luxury, or stick to utilitarian? Will be interesting to see what sort of occupancy you get from it 👍
Grwat video James. Im looking to buy a residential property to move my manufacturing business into a barn or similar with the business paying the mortgage instead of someone elses. In my area there, the property needs to be a £1.5m, making it tough
Love this only was trying to find your old video explaining this industrial estate you have think was a couple years ago , would love to do the same by me one day 👌🏻
750 in my country I make a Palace 😂😂 so expensive the houses in uk😂😂 and y hear ur neighbours trough the walls , I need to work 150 years for a house😂😂😂
Surely by switching the direction of the slip road you will hugely devalue the house, making the trade off between losing the 2 commercial units and switching the slip road six of one and half a dozen of the other
I got out of property "investment" a couple of years ago when I saw the "writing on the wall". Why have all the hassle and stress when there are alternatives?? Personally, I now only invest in "dividend" stocks which are compounded by ploughing back the dividend. As an example, I receive 8.78% annual dividend on my BAT stock and a whopping 10.33% dividend on my Vodafone stock. Unlike property, I can cash in my stock at any time releasing funds. These two stocks alone have increased in value by 17% within two years PLUS the dividends.
also if holding stock via a company it's tax free dividends received so long as it's a UK listed company paying it - all you pay is the 0.5% stamp duty on purchase.
@@liquify- stocks are ok, but any company can go bust, so you could lose everything, a property will never go to Zero, unless it burns down, but thats what insurance is for., also you still have the land.
Another great video james, well done. I would love to know more about the type of entity you use to purchase these buildings, for example its hard to get enough money into a sipp/sas (60kpa) to purchase at this level. Do you buy some in your LTD companies and some in your pension or?
I bought this in the same company as the industrial park. It’s a LTD company. I don’t have a pension - well I’m the pension. I believe I have the skill set to out earn a pension as a business owner; I can also leverage stuff easier if it’s in a LTD co.
@@JamesSinclairEntrepreneur I really appreciate this info. I thought i saw you mention somewhere you keep some commercial freeholds in a sipp or similar for tax reasons but maybe i got that wrong, or assumed it. I also buy commercial prop in LTD co's as i cant get enough into my sipp, For my biz search: 'drayton members club' cheers
I wish the US government was against residential property investment! Massive property investment has ruined the US housing market, exploded the homeless population and has been a major factor in our inflation. I am sure there is a right way for government to make it feasible without the abuses but given the choice of the two I would take the UK model.
Seriouse question my man, i live in manchester, so out of your sphere ..but next year i will sell a lot of my assets i aim to raise a few million, ive come from nothing, i will no waste a penny, i want to biuld ..or start to biuld my own empire, could ypu help please, ypur very smart and logical, traits i admire ..
Why is that calculation not working for me? Lol. Surely, I’m not that silly? Lol I’m doing £65,000 divided by £120,000 = 1.84… x 100 = 184%??? Surely the ROI is not nearly 200 times my costs???
Would i be right in saying commercial property in the shape of retail and offices is a terrible investment or potentially so. So much vacant and rents for them being offered at little higher than donkeys years ago, plus business rates on unoccupied. Or am i missing something?
You wouldn’t see me doing retail. Unless it was a retail park; they do very well. Where you find furniture shops in big box warehouses out of town. That said I have never done that. I like warehouses, hotels and I do have some offices.
Making money off of being a landlord for residential real estate is not particularly ethical in my opinion. I would prefer wealthy people to invest their money in productive businesses that create jobs, opportunities and new goods and services for people. Rent seeking off of essential assets (shelter) drives up prices and creates propertyless underclass that destabilises society.
I’m glad you mentioned capital allowances 👌🏼 had hoped you were taking full advantage of these with all the commercial property you’ve been accumulating over the past 5 years
To bring 100k annually, you would need to spend (invest) extra…so your ROI calculation need to also include that extra investment for a more accurate comparison..is that right?
@@kalex381 yes absolutely; it’s quite hard to go into mega detail on RUclips so I wanted to make sure I got an overview of how I think. I actually think we could get to 200k revenue a year as part of the hotels accommodation arm doing bookings for corporate stays; the breakdown of this is for another video.
Landlords.. wealth creators? 🤣 Stick to real business, not exploiting people's most basic need. You should be angry that the government sold the majority of social housing stock.
I know how to do and I built a big portfolio. When you look at commercial property and business over BTL it’s like driving a Ferrari over a bicycle. For a million invested in BTL over business, business wins every day.
Sorry but your wrong, if you leverage the property using mortgage debt and draw out your original deposit after the development the Roi can be infinite.
@thedappercook not knocking just pointing out there was an imbalance in saying res property investing was quite that bad, Absolutely it's not as good and the tories have wacked the landlords And no doubt Labour will make it even worse, but there's a reason banks such as Lloyds are buying res property. But 100% it's not as good and love listening to James on buisness. The SA side is not as good and a lot of hard work HMO in my opinion is even worse
@@wayneuk can you read? I never said he hasn’t created wealth……I simply pointed out buying a residential property doesn’t make someone a wealth creator…..do try and read the words properly in future like a good lad 🙄
@@eccentricity9697 again can you not read? Let me try to explain as you appear to not understand…..if you buy a residential property it doesn’t make you a wealth creator……do you actually understand the definition of being a wealth creator? It appears not 🙄
@@markmoran916 lol, the funny thing about this is I understood what you said. Whereas you didn’t understand why I thought your comment weird, then you went on your mini rant responding to a appoint that doesn’t apply to me 🤣
5:45 tbh that house would have stood empty for decades if not for your aquisition HGVs for breakfast is not exactly everyones dream home criteria mite have been worth making them sweat it out, they would struggle to get £400 at auction. totally understandable why its worth a premium to you though. looking forward to seeing the new plans unfold 🏗️🕋🧱🏢
![Jack Harlow - Hello Miss Johnson [Official Music Video]](http://i.ytimg.com/vi/Q86_nlRoIGw/mqdefault.jpg)
Quickly becoming my favourite business channel, keep it up James!
When you walk into the double garage, there is a nice kiddies bicycle leaning against the fence.That must be worth a few bob. Worth looking into.
Well done, that is a £1000 +vat property course crammed into 17 minutes. And the £187,000 capital allwances on your holiday let well be the icing on the cake. You are a gent
Without the big price tag for it
Would be interested to know the basis of your calculation in support of those CAs 🙂
Hi James, what a vid, I am at the 10% mark on my BTL’s so you won’t be too upset with me. The barrier to entry I find with commercial property (other than finding the deals in the first place) is the higher capital required. Could you do a video explaining in detail the finance breakdown of a typical commercial property deal?
Excellent video as always, James. Very insightful! Keep up the fantastic work, it's great to see you doing well👏🏼
Another great video James. The only issue with your ROI calculations on the whiteboard is you didn't add the £30k to £100k you mentioned previously will need to be spent on that house to get it up to the standard. Surely that needs to be added ? I totally get your reasoning for buying it as a way of getting your additional units without planning objections. Keep up the good work.
I enjoy your videos like this, it makes my life and business look so much more simple! 😀 It does give me ideas on eliminating problems by targeted purchases and investments though. The road layout there will be a lot better. Well done Hoff
Yes, love the lesson on this, however surely the return (aim of 10% or 20%) should be of the PROFIT on the rental and not just the turnover?
Serviced accomodation may give you a better return % on paper, but will make similar profit than long term rental when all costs are taken into account.
The serviced accomodation is a trading business so can't just be shown as a return on the investment.
Also, you didn't add in the cost of refurbishment into the maths. You aren't realistically going to get 36k rental on that, or 12k on the garage, without putting in considerably more money, which lowers your return. Or 100k in serviced without a huge spend.
I understand the principle, but you seem to be picking the numbers you like the most...
Making a flat for a staff member, you’re a gem James 😊
This is brilliant. Exactly what the so called property gurus with a vested interest in selling courses don’t tell you.
16:10 it'll be interesting to see how a luxury serviced accommodation would work next to an industrial estate, however this is just around the corner from my Dad so who knows I could be brining my family here when you finished!
What is 'luxury serviced accommodation' actually?
Thinking the same thing
@@matthewfisher6584 I'm not for a second suggesting it can't work, just will be interesting to see how it does work
@@davidnorton5887 think of a serviced accommodation, like a rent 2 rent place, but on a luxury level!
love this guy, i over the case of the last 6 months, have turned into a huge fan of this guy
Hi James,
You mentioned using mortgages to increase ROI by reducing cash input. But I'm wondering about all the levers that can affect the PCF/TCI formula. What are the most crucial factors that can make or break an investment's profitability? I'm particularly interested in elements that could unexpectedly decrease ROI, even when using leverage.
Can you break down the top 3-5 variables you always consider when evaluating an investment's true potential?
Thanks,
Would love to see a behind the scenes when you build the new units on the business park
This video is not for the average person who has this type of money to spend, sooner have the money in the back and not have all the hassle and stress.
Those are all very basic stuffs which you make sound very important, holy grail and never spoken before!!!
Plenty of Noobs here finding this that they have just discovered America with your great acting JS
Just to be clear: you know that diamonds don't rust, right? That's really important to me...
(Super video, thanks for posting) 🙂
I thought that as I watched the edit back. I’m an Idiot. I meant “rough” 🤣
You said the previous owners sold the house partly because they were moaning about your adjoining business park (presumably the noise), but you plan to turn the house into "high end luxury serviced accomodation" and build another 22 industrial units next door? Seems like the two ventures side by side don't compliment each other well. I'd just turn the house into offices or something.
I'm 3 years into my business and watching your videos gives me a MASSIVE insight what to look for, what to expect etc.
I've started to cut down my hours at my full time job to work on my business more, which a year or 2 will be what I do full-time.
Keep it up James and thank you for being so transparent 💪
For sure UK residential BTL is a nightmare right now but as interest rates come down it will level out. Best thing is to shift them into a SPV. Nice vid but the investment seems like a hard one to get your money back.
Plus in future the main house and annex can be converted into business use. Such as a day nursery. Which is a nice mix next to a business park, with employees like making just one journey to work/child care destinations.
@@andrewhead6267 I thought about a day nursery but it’s too far out IMO.
Great advice. Love the 25 hooks to the big reveal 😂
Great video but we need more day in the life’s!
Great watch - I invest in residential property and believe it can still be leveraged well, but I can see the benefit behind your commercial approach with this property!
Listen to Mr Sinclair 14 minutes in.
Check your Linoedin Justin, been trying to get hold of you for a podcast mate.
HI James
Great way to spend a million. Please show us more.
Get that voice nursed too.
Enjoy
I was so expecting you to say it was being turned into another nursery. Will you go the whole hog and do hot tubs, fire pits and a high level of luxury, or stick to utilitarian?
Will be interesting to see what sort of occupancy you get from it 👍
Very true... The majority of billionaires didn't get there by growing a property portfolio they grew businesses.
Grwat video James. Im looking to buy a residential property to move my manufacturing business into a barn or similar with the business paying the mortgage instead of someone elses. In my area there, the property needs to be a £1.5m, making it tough
You’re also going to have some long bookings from the contractors building your new 22 units.
Lol, the industrial units basically devalued the property. Probably knocked off 100k from the value of the house
6:00 Brilliant reason for the purchase!
Love this only was trying to find your old video explaining this industrial estate you have think was a couple years ago , would love to do the same by me one day 👌🏻
Amazing story telling, love it
Great insight James
But by moving the entrance, by taking land from the large house, you are devaluing the house IMO.
750 in my country I make a Palace 😂😂 so expensive the houses in uk😂😂 and y hear ur neighbours trough the walls , I need to work 150 years for a house😂😂😂
Surely by switching the direction of the slip road you will hugely devalue the house, making the trade off between losing the 2 commercial units and switching the slip road six of one and half a dozen of the other
The house will be based off a commercial valuation from its revenue rather than a bricks and mortar valuation - so it doesn’t matter all the much
Great video James
For a second, I thought it was the bathroom lino that made you buy the property.
Cut back on the Newport’s Ben Mallah 😅
Subject to ecology and tree surveys as well no doubt!
First, greetings from Dundalk, Ireland.. looking forward to this video.
Love this strategy.❤
Great video . James you finance beast 😀
❤nice info n fast paced simplified ,
I got out of property "investment" a couple of years ago when I saw the "writing on the wall". Why have all the hassle and stress when there are alternatives?? Personally, I now only invest in "dividend" stocks which are compounded by ploughing back the dividend. As an example, I receive 8.78% annual dividend on my BAT stock and a whopping 10.33% dividend on my Vodafone stock. Unlike property, I can cash in my stock at any time releasing funds. These two stocks alone have increased in value by 17% within two years PLUS the dividends.
Not to mention being able to hold it tax free in an isa
also if holding stock via a company it's tax free dividends received so long as it's a UK listed company paying it - all you pay is the 0.5% stamp duty on purchase.
@@liquify- stocks are ok, but any company can go bust, so you could lose everything, a property will never go to Zero, unless it burns down, but thats what insurance is for., also you still have the land.
Love it JS 🔥
Another great video james, well done. I would love to know more about the type of entity you use to purchase these buildings, for example its hard to get enough money into a sipp/sas (60kpa) to purchase at this level. Do you buy some in your LTD companies and some in your pension or?
I bought this in the same company as the industrial park. It’s a LTD company. I don’t have a pension - well I’m the pension. I believe I have the skill set to out earn a pension as a business owner; I can also leverage stuff easier if it’s in a LTD co.
@@JamesSinclairEntrepreneur I really appreciate this info. I thought i saw you mention somewhere you keep some commercial freeholds in a sipp or similar for tax reasons but maybe i got that wrong, or assumed it. I also buy commercial prop in LTD co's as i cant get enough into my sipp, For my biz search: 'drayton members club' cheers
@@JamesSinclairEntrepreneurdid the owners approach you or did you see their house was for sale and put in an offer?
I wish the US government was against residential property investment! Massive property investment has ruined the US housing market, exploded the homeless population and has been a major factor in our inflation. I am sure there is a right way for government to make it feasible without the abuses but given the choice of the two I would take the UK model.
Well it hasn’t worked here! I assure you.
Seriouse question my man, i live in manchester, so out of your sphere ..but next year i will sell a lot of my assets i aim to raise a few million, ive come from nothing, i will no waste a penny, i want to biuld ..or start to biuld my own empire, could ypu help please, ypur very smart and logical, traits i admire ..
Also looks as though you could get a building plot for a house next door to that house?
why dont you convert the building to a childcare nursery? looks big enough for a decent amount of children
Where would you put smaller amounts say 20k/30k or say you were saving 1k a month where should that be put?
G'day James, do you have the Hoff six pack as well?
Oh yeah John. My name is also Pinocchio.
great video.
Legend!
Could the house not be converted into a day care? 👀
Couldn't you rent out that property to workers in the industrial estate in commercial SA lets?
Which part of the UK has 4.75% base rate, Lord Sinclair?
I was getting excited for my predictions at the next MPC meeting. 😂😂😂😂
Very informative..thanks for this. Btw base rate is still 5%
My bad, getting excited for the next meeting.
Beautiful property
Why is that calculation not working for me? Lol. Surely, I’m not that silly? Lol I’m doing £65,000 divided by £120,000 = 1.84… x 100 = 184%??? Surely the ROI is not nearly 200 times my costs???
£65,000 divided by £120,000 is not 1.84 - it's the other way around - it's approx 0.54
@@JamieNurse I’m sure in the video James did it the other way round? Or I’m loosing the plot. Thanks anyway!
Referring to yourself in the third person sign of a egomaniac
@@Commentssectionbingo love you too
Would i be right in saying commercial property in the shape of retail and offices is a terrible investment or potentially so. So much vacant and rents for them being offered at little higher than donkeys years ago, plus business rates on unoccupied. Or am i missing something?
You wouldn’t see me doing retail. Unless it was a retail park; they do very well.
Where you find furniture shops in big box warehouses out of town.
That said I have never done that. I like warehouses, hotels and I do have some offices.
I doubt if you would get £36k rent for that house.
Making money off of being a landlord for residential real estate is not particularly ethical in my opinion. I would prefer wealthy people to invest their money in productive businesses that create jobs, opportunities and new goods and services for people. Rent seeking off of essential assets (shelter) drives up prices and creates propertyless underclass that destabilises society.
you mean homeless people? the poor?
How much to covert the property in to what you intend it to be?
Haven’t worked that out yet, I may even turn it into offices too.
@@JamesSinclairEntrepreneur thank you for the reply.
Good luck with whatever you decide to do👍
You can claim the duty back? I thought?
Not stamp duty.
I’m glad you mentioned capital allowances 👌🏼 had hoped you were taking full advantage of these with all the commercial property you’ve been accumulating over the past 5 years
Could make it into another day nursery?
@@domtaylor2271 I thought about it but it’s not the right location.
@@JamesSinclairEntrepreneur I was waiting for you to say you couldn't see a chimney pot for miles
Why not get a loan?
I did. I got a mortgage, I did say that on the video. In the ROI example I just wanted to keep it simple for explaining my philosophy.
compulsive viewing dammit..i'm supposed to be working !!
To bring 100k annually, you would need to spend (invest) extra…so your ROI calculation need to also include that extra investment for a more accurate comparison..is that right?
@@kalex381 yes absolutely; it’s quite hard to go into mega detail on RUclips so I wanted to make sure I got an overview of how I think.
I actually think we could get to 200k revenue a year as part of the hotels accommodation arm doing bookings for corporate stays; the breakdown of this is for another video.
He has all the on screen presence of a marble
I agree. Can’t stand him. I wish he would go back in his box.
@@JamesSinclairEntrepreneur you’d think he’d have some kind of training to go in front of the camera, considering all his millions
Landlords.. wealth creators? 🤣 Stick to real business, not exploiting people's most basic need. You should be angry that the government sold the majority of social housing stock.
Government anti landlord ? should get more hotels the government love a hotel let 😂
Resi BTL has made me a millionaire at 44. I guess you’re not too sure how to do it properly 🤔
I know how to do and I built a big portfolio. When you look at commercial property and business over BTL it’s like driving a Ferrari over a bicycle.
For a million invested in BTL over business, business wins every day.
@@JamesSinclairEntrepreneur what are you comparing? Running a business to investing in residential property?
Sorry but your wrong, if you leverage the property using mortgage debt and draw out your original deposit after the development the Roi can be infinite.
And how many times have you personally done this Stuart?
Lol, have you actually done this Stuart? At least James has the knackers to do it and film it.
@@aberjack92 several
@thedappercook not knocking just pointing out there was an imbalance in saying res property investing was quite that bad,
Absolutely it's not as good and the tories have wacked the landlords
And no doubt Labour will make it even worse, but there's a reason banks such as Lloyds are buying res property.
But 100% it's not as good and love listening to James on buisness.
The SA side is not as good and a lot of hard work HMO in my opinion is even worse
@@stuartgunn8745 well now you've done a 360
Oh no please dont tell me youve become a scumlord?!
Bored after 2mins, I had to go to the end to find out why he bought it, so didn't watch the boring part in the middle.
It's always good to have some foreplay before going all the way, so to speak! Otherwise it makes the whole thing very boring.
Sorry James but buying a residential property for speculative purposes doesn’t make you a wealth creator….otherwise love your channel 👍
lol have you not seen the wealth he has created. watch this space
@@wayneuk can you read? I never said he hasn’t created wealth……I simply pointed out buying a residential property doesn’t make someone a wealth creator…..do try and read the words properly in future like a good lad 🙄
@@markmoran916regardless it’s a bit of a weird comment
@@eccentricity9697 again can you not read? Let me try to explain as you appear to not understand…..if you buy a residential property it doesn’t make you a wealth creator……do you actually understand the definition of being a wealth creator? It appears not 🙄
@@markmoran916 lol, the funny thing about this is I understood what you said.
Whereas you didn’t understand why I thought your comment weird, then you went on your mini rant responding to a appoint that doesn’t apply to me 🤣
5:45
tbh that house would have stood empty for decades if not for your aquisition
HGVs for breakfast is not exactly everyones dream home criteria
mite have been worth making them sweat it out,
they would struggle to get £400 at auction.
totally understandable why its worth a premium to you though.
looking forward to seeing the new plans unfold 🏗️🕋🧱🏢