164 - Commercial Conversion with over £500k Profit

<p dir="ltr">In this Deals, Deals, Deals Podcast Series, we go Behind the Scenes on some of the UK’s most Creative, Lucrative and Award-Winning Deals 🤩</p> <p dir="ltr"> </p> <p dir="ltr">In this month's Deals Deals Deals podcast, Mark Barrett’s guest is Tej Gill, accountant and tax advisor, who joined Property Entrepreneur last year after attending the 3 day Blueprint event last summer, with his sister Jasdeep, who is a doctor and his investment partner. He must have enjoyed the event as his wife is going this year! </p> <p dir="ltr"> </p> <p dir="ltr">Tej shares his fathers early advice about investing in property, how he started out his corporate career in 2008 in Mergers and Acquisitions, before joining his wife at Nijjer Accountants, which his father in law started 30 years ago.</p> <p dir="ltr"> </p> <p dir="ltr">We learn about a 3500 sq ft property commercial conversion near Guildford that Tej and his sister did to add to their Financial Fortress. We discuss how they sourced it, the project issues and how they mitigated the planning risk, how they divided it up into two shops and four flats, the rents they achieved, the tenants they got in and a long lease of the flats. </p> <p dir="ltr"> </p> <p dir="ltr">Tej shares his top three tips, his unusual Wealth Dynamic profile for his profession, how he helps his clients to structure the 8 and 9 figure sale of their businesses and also his learnings from attending The Financial Fortress six week program with Dan.</p> <p dir="ltr"> </p> <p dir="ltr">The numbers are:</p> <p dir="ltr"> </p> <p dir="ltr">Purchase Price: £370,000</p> <p dir="ltr">Project spend: £300,000  (professionals, contractor, solar panels)</p> <p dir="ltr">Total: £670,000</p> <p dir="ltr"> </p> <p dir="ltr">4 Flat’s rental: £50,000 pa</p> <p dir="ltr">2 Commercials: £27,000 pa</p> <p dir="ltr">Total : £77,000 pa</p> <p dir="ltr"> </p> <p dir="ltr">Valuation of the 4 flats: £995,000</p> <p dir="ltr">Commercial valuation: £300,000 (based on 9% yield)</p> <p dir="ltr">Total valuation: £1,295,000</