Smart Investors: Discover How to Prioritise Numbers Over Location

"If everyone is moving forward together, then success takes care of itself." - Henry Ford

If you want to achieve attractive returns through a proven Serviced Accommodation strategy, without wasting time and energy analysing property deals that don't work, then this blog is definitely for you!

I will discuss the importance of numbers over location, the ratios we consider when analysing a deal, and show you exactly why our strategy works. So, if you're ready to learn more about our business model and the secrets to successful deals, keep reading!

I'll discuss why the numbers matter more than "location, location, location."

I've put together this video to explain what makes a good deal and how it works.

Investors who delve into the finer details of our business model often wonder exactly what we do and how we do it. The purpose of this blog is to answer those questions and provide insights into successful deals.

Ultimately, deals have to work for everyone involved - the buyer, the seller, and our passive investors. If it doesn't benefit everyone, there's no point in pursuing it.

Our strategy is built on ratios, including income versus operating expenses and property size. The larger the property, the more rooms we can create, which is why property size is crucial.

When it comes to location, we focus on desirable towns and specific target areas within those towns. This allows us to generate higher nightly rates, which are key to profitability.

As for property layout, we aim for layouts that require minimal building work but bring in maximum income. We avoid odd layouts as they can be challenging and expensive to work with.

Developments requiring permission can lead to additional costs, higher risks, and longer processes. To avoid these complications, we pass on properties that require planning permission. Our preference lies with properties that can be refurbished quickly so that they can start earning income as soon as possible.

One of our core principles is the ability to add value. We look for guest houses hotels where there is an opportunity to create more rooms from spaces that are currently underutilised, such as bars or dining rooms. By optimising this dead space, we can increase our inventory area and maximise income.

To summarise, deal analysis is paramount. If the numbers don't work, other factors such as appearance, structure, or size become irrelevant. We say no to a lot of properties because numbers don't lie. The key ratio we consider is the asking price plus the property setup costs versus the income and net profit. Ratios are essential as they determine the viability of a deal. If the numbers don't stack up, we walk away.

In conclusion,

Prioritising numbers over location is crucial in property. While location is important, it should not overshadow the financial analysis of a deal. By focusing on ratios and ensuring a win-win situation for all parties involved, success lies within reach. Let's embrace the power of numbers and make profitable deals happen!

Investing in property can be a lucrative venture, but it's important to focus on the numbers above all else. If you want to maximise income and make profitable deals happen, dive deep into the numbers and take action today.

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