060 - Commercial Multi-Let Deal

‘Know your exit options’   In this BRAND NEW Podcast Series we will be going Behind the Scenes on some of the UK’s most Creative, Lucrative and Award-Winning Deals 🤩   Hosted by me, Mark S Barrett from The Property Brokerage, this month it gives me the absolute pleasure to welcome Billy Turriff who will share his insights on Commercial Multi-Let deals.   In this podcast, Billy and I discuss his take on a commercial multi-let deal that he did which highlights why it is important to have multiple exit options.     His initial option was to convert it into self-contained studios and even though he had gained prior approval, the build costs due to Covid were too high so Billy used his experience to let out the spaces to individual businesses wanting a flexible office space.   The rents were similar to what a HMO would provide without the high refurb costs and as this was a commercial property there was no stamp duty to pay.   This led to a very high Return on Capital Employed (ROCE), after refinancing, of 50%.   Purchase price £110,000 Refurb and costs: £20,000 New valuation: £150,000 Exit: retained as an asset for own portfolio   Cash left in after potential refinance: £18,000 Equity: £20,000 approx Cashflow: £9000 pa + ROCE: 50%   If you want to understand how to make commercial multi-let deals work for you this is one Podcast you do not want to miss.    Our February episode of Deals Deals Deals is now live, tune in straight away to avoid missing the boat.   Success and Failure are both very predictable. Want to learn more?   If you’ve not already joined the 8.5k Property Entrepreneurs for FREE in the Property Entrepreneur Facebook Group, click here to join now:  The Property Entrepreneurs Community If you're listening to this podcast but have not yet subscribed, click the subscribe button to listen to what Daniel and other industry leading guests have to say on a weekly basis on all things business, investment property and lifestyle: The Official Property Entrepreneur Podcas‪t    Keep up to date with Daniel’s musings by subscribing on YouTube now: The Official Property Entrepreneur YouTube Channel   Follow Daniel on Social: Instagram: @propertyentrepreneur_  Facebook:  @PropertyEntrepreneurOfficial LinkedIn: @propertyentrepreneur