"The strength of a partnership lies in the clarity of its agreements." - Abraham Lincoln
Are you eager to unlock the secrets of service accommodation success?
In this video, I'll reveal the key calculations that separate the great deals from the lemons.
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Let's dive right in with the first calculation:
Income analysis: Understanding the potential revenue that can be generated from a property is crucial. Factors such as room types, seasonal differences, and occupancy rates all come into play. By mastering this calculation, you'll lay a solid foundation for success.
Acquisition analysis: We must consider all the costs involved in acquiring, refurbishing and setting up a property. From the initial building cost to refurbishment expenses, every aspect should be meticulously calculated. Don't forget about the furnishing, professional photography, and other setup expenses. By carefully considering these acquisition costs, you'll have a clear picture of your capital requirements.
Cash flow analysis: Is next on our journey to serviced accommodation success. Subtracting operating costs from your gross income gives you a comprehensive view of your cash flow. This analysis allows us to make informed decisions about the financial opportunity.
EBITDA: This accounting term, which stands for “earnings before interest, tax, depreciation, and amortisation” allows you to assess the actual performance of your income-generating asset without the influence of these factors, the most critical being debt. By utilising EBITDA, you'll gain an accurate understanding of the financial viability of the investment.
Tax analysis: Debt structure and understanding the tax implications of your corporate setup is crucial. By minimising tax liabilities and maximising your tax savings, all within the boundaries of HMRC regulations, we can optimise our financial position.
By mastering these calculations, we gain a rock-solid understanding of our numbers. Remember, the numbers never lie.
In conclusion,
Due diligence and accurate calculations are the secrets to serviced accommodation success. By thoroughly analysing income potential, acquisition costs, cash flow, EBITDA, and debt and tax implications, we can make informed decisions that lead to exceptional results.
Are you ready to profit from Serviced Accommodation investments?
Don't delay - understand those numbers today and start building your service accommodation investment portfolio with a Trusted Property Partner!
Are you ready to make informed decisions that lead to exceptional investment results?
Discover our property strategy and the power of collaboration in our exclusive Case Study Video with award-winning investor and developer, Mark Fernihough.