In this episode of the Commercial Property Investor podcast, host Jerry Alexander is joined by his friend Steven Clark to discuss his recent Student accommodation project in Aberdeen. Steven shares his experience of transitioning from single let resi properties to bigger deals and commercial deals and explains why he was drawn to the student accommodation market.
He details the process of finding and acquiring a building in a prominent location near the university, as well as the challenges he faced with the fire system and financing. Despite the hurdles, Steven successfully completed the project and achieved a valuation that allowed him to refinance all of the original investments out. He concludes by discussing the potential for future projects in the student accommodation market and the importance of long-term investments.
KEY TAKEAWAYS
The podcast episode discusses a commercial property investment project in Aberdeen, focusing on student accommodation and HMO properties.
The project involved purchasing a building that had been converted into seven flats, with the potential for an eighth, all under one title.
The financing for the project required convincing the bank that it was a commercial building rather than a residential one, based on the income potential.
The project faced challenges with the fire system, which required significant repairs and replacement of heads, resulting in additional costs.
Despite the challenges, the project was successful, with a valuation of £1.06 million, allowing Steven to clear out all short-term borrowings and leave no money in the investment. The property is generating a monthly income of over £5,000.
BEST MOMENTS
“If you’ve got the experience in residential, you can scale up to commercial-sized portfolio of buildings or projects inside the residential space.”
On reviewing the previous commercial project discussed on another podcast episode: “I can’t remember how much detail we went into the last time but we pretty much got a good result on the purchase price and the exit.”
“I believe in the model and I would do it again, but it would just have to be the right opportunity.”
Follow Steven:
https://www.instagram.com/stevenclarkproperty/
https://www.linkedin.com/in/stevenclark007/
Scottish Property Podcast: https://scottishpropertypodcast.co.uk/
For property training with Steven Clark: https://thisisproperty.info/
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