This week, we’re going deep with Andy Graham as he shares his journey from HMOs to commercial-to-residential developments! 🏗️
We unpack:
- Andy’s journey from physio to property developer 👨⚕️➡️🏠
- His approach converting commercial properties into residential developments
- The power of partnerships in scaling up 🤝
- Real-life projects from Sheffield to Kent
Some numbers that might surprise you:
- Andy’s first development: Under 3,000 sq ft was extended into 6 units
- Current pipeline: 100+ flats in development
- Target capital uplift: Minimum 25% on projects
- Timeline reality check: 2-3 years vs quick HMO flips ⏱️
Key lessons for HMO investors eyeing commercial:
- Planning is a whole new game (and often a “black hole” of costs 💸)
- Other income streams can buy you breathing space – development isn’t about quick cash
- It’s a volume game – individual units might yield less than HMOs
- Main contractors are essential – small additional costs per square foot can make or break deals
Success strategies we uncovered:
- Building relationships with commercial agents
- Understanding local development context deeply
- Having contingency plans (sometimes you need to sell some to keep some)
- Working with partners who complement your skills
🎬 Fun fact: Some of Andy’s developments have even been featured on Channel 4.
Some key reflections:
- The planning system might be “fundamentally broken” – but knowing how to navigate it is crucial
- Commercial to resi development is about long-term capital growth, not immediate income
- Understanding your local market deeply lets you move fast when opportunities arise
- The right partnerships can transform your ability to take on bigger projects
Whether you’re considering a shift to commercial or just curious about different strategies that are out there, this episode is filled with valuable insights. Andy’s journey from HMOs to large-scale developments demonstrates that every developer begins somewhere – often with a single property and a desire to learn!
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Useful Links:
The HMO Roadmap: https://thehmoroadmap.co.uk/
CPI Website – https://commercialpropertyinvestor.co.uk/
Our Sponsors – https://commercialpropertyinvestor.co.uk/podcast-sponsors/
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