Our client, an overseas investor, was on the brink of losing £100,000 on a property project gone awry. After reaching out for help and coaching, she turned the situation around and is now set to make at least a £100,000 profit—a £200,000 swing in the right direction. This story highlights the incredible impact of getting expert help and advice.
Background of the Case
I met this client during a property training course organised by Mindvalley, where I was the expert trainer. She had a history of property investment but faced significant issues with one project. She had purchased an eight-bed HMO in Nottingham, intending to convert it into a 10-bed licensed HMO. However, her local joint venture partners lacked the necessary expertise, resulting in the property being stripped back to brick and becoming a liability.
Initial Solution and Further Complications
To mitigate her losses, she aimed to sell the property for £550,000, covering her costs and making a small profit. Unfortunately, the sale fell through after several months, and she considered selling at £400,000, incurring a £100,000 loss.
After discussing her situation with me, she decided to explore alternative solutions. We discussed my current strategy of converting properties into suitable accommodations for vulnerable tenants managed by charities or registered providers. This approach generates higher rental income and can be sold on a commercial valuation.
Results
We agreed to change the planning for her property, converting the eight-bed HMO into several one-bedroom apartments. These units will be leased to a local charity, ensuring good cash flow and providing social impact. This strategy not only recoups her initial investment but also promises significant profit.
The key takeaway from this story is the value of expert advice and strategic partnerships in property investment. When facing challenges, explore all possible solutions and be open to unconventional strategies.
This case is a powerful reminder of how challenges in property investment can be turned into profitable opportunities with the right mindset and expert guidance.
