Apply both BTL financing models to the following scenario:

A commercial property is available at auction for £80,000. It may have potential to convert into 3 self contained residential units with values of £85,000 each. Hence, with some building costs and an initial purchase price of £80,000, there is potential to create 3 properties with a total value of £240,000. That is £160,000 of additional equity sitting there waiting to be created! Read the rest…

I have mentioned this in my previous book: The Landlords Guide to Surviving the Credit Crunch, however, it is an area that deserves further investigation and analysis. In the past few years this method was my bread and butter. I would do up to 15 of these deals a year and on each deal have plenty of margin to either hold on to the property and remortgage my initial investment back out (plus some extra) or to sell the property. Read the rest…