Listen to this episode below:
Today I am delighted to be joined by Rob and Mark Hodgkiss, brothers who started their company, In Hot Property, just over a year ago.
In that time they’ve bought and have almost completed a 2,500sqft commercial conversion project, built a Serviced Accommodation business with 9 units and have an HMO refurb underway.
Mark is on the brink of ending his career as an RAF navigator to go full time into property, whilst Rob is a contract project manager, but recently inspired by outsourcing lessons from property training, has outsourced some of his contract work to free up his time to work on the property business.
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By working on joint ventures with Kyle Witham, Mark and Rob have been able to grow their HMO portfolio with virtually none of their own input, leaving their time free to focus on the commercial to residential conversions and growing the serviced accommodation portfolio.
Because they utilise Kyle’s expertise in the HMO world, they’ve found a great way to diversify their portfolio without having to become experts in this area and stretch themselves too thin by running in too many directions at once.
Being extremely close to completing a large commercial conversion project in Knaresborough, this deal really stands out for them as their favourite deal so far.
The building was purchased for £181,500 and the total development cost was £275,000, with an end GDV of £535,000 which would give them a straight profit of around £80,000 if they chose to sell. Not only that, but the experience they’ve gained from taking on this scale of project so early in their property career will pay dividends long into the future.
Selling was never the intention though, so as well as the uplift in value from their effort they now have 4 purpose designed serviced apartments in the heart of a popular tourist area that will give them great monthly cash flow long into the future.
During the conversion project, the process for obtaining development finance was an eye opener. Initially they thought they might struggle to meet the experience criteria for finance as this was really their first conversion project as In Hot Property.
They considered taking on an experienced non-executive director to help with that side of things but after some consideration they realised the lender would actually consider Rob’s wealth of project management experience from the corporate world.
With that barrier overcome they thought they were on their way, until the survey valued the property at £80,000, rather than the £181,500 they had just purchased it for!
What’s Your Favourite Book?
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Miracle Morning – Hal Elrod
Who Moved My Cheese – Dr Spencer Johnson
Mark & Rob’s Links & Resources
InHotProperty.co.uk – Mark & Rob’s In Hot Property Website
In Hot Property on Facebook – Mark & Rob’s In Hot Property Facebook Page
Yale Smart Locks – Looking for a way to manage your Serviced Apartment check-ins from afar? Rob and Mark swear by their Yale Smart Locks
Mile IQ – An extremely easy way to track and split your business and personal car mileage
Last Pass – Manage all your passwords centrally so you never get locked out again
Email Mark & Rob – Got a question or looking for some advice? Get in touch with them here.