How To Use Pension To Invest In Commercial Property – Property Investment UK – Touchstone Education

– Basically, I’ve got pension money and I want to know how I can buy this commercial shop and upper, into it and what’s the best way to do it. That’s why I’m here with my mentor. – We’re at the village
of Askern in Doncaster. – Askern, so we’re what? 10 miles from the middle of Doncaster? – Yeah, about 10 miles. – Maybe, something like that? First thing I always do when I’m thinking, “should I, shouldn’t I?” Before I even go anywhere
near the property, I want to make sure I know the area. – [Abbie] Yes, yeah. – So, we’ve got a lovely
boating lake over there, we’ve got lots of green trees
and we’ve got new houses. This business, the hairdressers, that we’re going to see in a second, it owns the property, doesn’t it? – It does, yes. – So whenever you’re looking at Daltons, or something like that, if it’s commercial property you’re after, you’ve really got to be looking for businesses with property. – Because I want it to be win for me and win for the lady that’s in there, I don’t want to rip anybody off. She’s obviously using this money cause she’s got no mortgage
for her retirement. So I want to make sure she
still gets a good lump of money and that I still get
the value of the unit. – So she’s got back access
straight onto the main road. The roof on the property you’re looking at is not new, is it? – No, no! (laughs) – It’s also got that roof light in it, that, I think it’s chocked up, we’ll see that when we get up there. – [Abbie] It’s got a
bottle in it. (laughs) – It looks like it’s
kept open by a bottle! Which is, that’s unusual! So, I would certainly be
assuming that I need a new roof on this one.
– [Abbie] Yeah. – If I’m going to set
myself a budget for the, let’s call it the
envelope of the building, by which I mean, make sure
the walls are sound, they are. Roof, gutters and a couple of windows, a budget for that, Abbie, front and back, I’m going to say five grand. – Yeah, cool. – [Paul] Let’s go upstairs.
– [Abbie] Let’s go in. – [Paul] See what we find.
– [Abbie] Yeah. – Okay so, we’re in the kitchen. – We are. – And is there anything in here
that isn’t going in the bin? – No. – No, and we need a new floor as well. – [Abbie] It all needs
to go, yeah absolutely. – [Paul] Every single
thing in here is shot. Jesus Christ, this place makes me nervous! More time needs spending on it. – I’ve just saw the electrics. – That is a 30 amp power cable. 30 amps, times 240 volts. I don’t even want to think about that. That is thousands of watts. – And it’s next to the
diesel or petrol behind you. – If you touch this, there wouldn’t even be a flash or a bang, it’d just be your boots
left on the ground. When you’re walking around
something like this, this is semi-derelict. – Yeah. – Please don’t touch anything. Anything, because we seem to
have this magnetic attraction, “oh look, there’s an empty wire!” Buzz, no, don’t do it. This is currently a one bedroomed flat. – It is. – It’s knackered. There’s that technical word again. With a very large lounge. – Yes. – Kitchen behind this wall. – Yeah. – And then upstairs,
just like a maisonette. – Yeah. – So what we were just talking
about is turning this room in to a bedroom. – Yes. – Plus a lounge. And then taking this
wall out, or at least, a lot of the wall out.
– Yeah. – To make this into a
lounge-diner-kitchen. – Kitchen, yeah. – On this side and then on this side, just a bedroom. – Yeah. – Now you probably want to make sure, I mean to be a decent
sized double bedroom, how many square meters
would you say, Abbie? Cause you know for a HMO room. – 10 meter squared? – Yeah, I mean 10’s big, innit? I’m now going to show you how
I measure meters, watch this. You can do this too. So let’s see how many meters this room is. – If I did that, cause I’m short, we’d definitely get a– – Let’s do it side by side. – 10. – But now you know that. – Yes. – You know 10 of your steps is six meters. – Is six of yours, yes. – So whenever I’m pacing about, I’m actually subconsciously,
I’m measuring the room. – Yeah. – So that’s six by four and a half. – Yeah. – Is 27, so we’ve got 27
square meters in here. We need to measure it properly. But this is just, we’re coming
to see it for the first time, or I’m seeing it for the first time, we just want to get a feel for it. So can you put a lounge
and a decent sized bedroom in to 27 square meters? Yes.
– [Abbie] Yeah. – You can. Now before you start doing
any refurb on a property, of any kind, you want an asbestos survey, don’t you? – [Abbie] Yes. – You have to have an asbestos survey. Do reckon there’s any
asbestos in this room? – [Abbie] I wouldn’t know. – I promise you there is. How do I know? – How do you know? – Cause this is Artex. – Oh okay, yeah. – There’s always asbestos in Artex. So, it’s just a tip for
anyone that’s watching this. How you going to make sure
that Artex isn’t an issue? The way we would do it
is, don’t penetrate it, don’t knock holes in it. Cause what they’ve done
here, for instance, they’ve drilled holes in it. So what they’re doing now is, they’ve caused an asbestos risk. What I would do in here, is I would actually drop the
ceiling by about six inches and put in an interior false ceiling. – Yeah, yeah. – Cause you’re not really
going to lose anything. – No, no it’d big enough. – And then plaster over this. – And then the electrics
are dodgy aren’t they? – You could soon see what
type of wiring it is, if you take one or two of these off. Even more of a clue is this. Which I realize, you can’t
really do that, can you? – No. Thanks, yeah. (laughs) – Do you see how burnt that is? – Uh. – And that kind of cable there? – Yeah. – Yeah, it need a rewire. – Yeah, okay. – I was going to, do
you know the one thing that would tell you better than anything? – Fuse board. – Fuse box. That’s a modern distribution board. – Is it? – Mm-hmm. So, that depends what they’ve done. If they’ve just attached
this to knackered old wiring, it’s actually making me quite
nervous, looking at this. – Is it? – Don’t, don’t!
– (laughs) – Touch either one of those
and you could be history. Now, downstairs there’s an
operational hairdressers, isn’t there? – Yes, that’s the power. – I can see the main distribution cable is coming from downstairs. So they might have done this
as part of fixing downstairs, so the only thing that’s
vaguely modern up here might be this. – Yeah. – But that says it’s off. And those two big wires are making, I’m a mechanical engineer not electrical, but they’re making me nervous. Okay, well we’re on the top floor! And we were originally talking
about making this a two-bed. – Yes. – I think you could make it a three-bed. – Yeah. – Well, I’m now inside the
dormer on the top floor. – Yeah. – And just, we need to re-do this dormer. – Yeah. – This dormer has got to cone off, so I’m going to add, it’s over
five grand, I’m going to say six. – [Abbie] Yeah.
– For the outside But what I’m actually thinking is, that we can bring forward
the bathroom wall. – Yeah. – Put another wall on the
inside of the bathroom and change it into a three-bed. – Yeah. I’d mean more value. – That would certainly be more value. – Yeah. – I think the main thing
up here to look at is, actually, the bathroom. – Yes. – Cause it’s, I’ve never
seen a bathroom like this. You’re going to be fascinated
at home by this bathroom. Cause, remember outside where
we saw the broken window propped open by a bottle? You can actually see, when
we go into the bathroom, why that’s pretty cool! (laughing) Come this way. Would you be prepared to
have a bath in this, Abbie? – No. – No? – Not a chance! – Do you want to sit in it and show us what it would look like? – No! (laughs) – (laughs) “No!” – No thank you. – But here, here is the bottle
that we saw from downstairs and here is the roof light. – Yeah. And here is the broken glass. It’s completely missing! Why is that not causing an issue? And I think this is genius, cause it’s over the bath! So the rain comes in,
goes down the plughole, which is how the whole house
hasn’t basically flooded, it’s just mental, isn’t it? So this broken glass, they’ve conveniently put a bath underneath it. So you could either
replace this with a Velux or just leave this bath here. What do you think?
– (laughs) – You could save money! – I could, yeah! (laughs) – Ventilation. So we think we can take this a good five, six feet the other way. – Yeah. – And we could easily make a
bathroom in here, can’t we? – Yeah, yeah enough space. – So just even up to the end of the bath. – Yeah. – So if we have the bathroom from there. – Yeah. – We’ve got, can you measure
how many meters we’ve got, from there to there for me? – Yeah. One, two, three, four. – Two meters? – Yeah, two. – So, we would have a room that’s about, three, three and a half meters wide. Which it won’t be a double bedroom, it’d be a single bedroom.
– [Abbie] Yeah. – But one of the things we
got to do is bring light in, isn’t it?
– [Abbie] Yes. – So how can we bring light in? How can we have a window, in that bit? Yeah. So not up there, but there. If we’ve taken this. – [Abbie] Oh if that’s the
bathroom ceiling, yeah. – And then you put another Velux up there. You could turn this into
a three bedroomed flat. – Yeah, be quite nice. – If you turn this into a three-bed flat, what do you reckon it’s going to be worth? – Well as a two-bed
you’re talking 70-75 so. – 80-85?
– 80-85, yeah. – And from just looking around, what’s your thoughts on
the kind of refurb budget, that we’re looking at for this place? – So I, when I first came
to see it before you, there’s loads of things I didn’t notice, conveniently didn’t. – What have you seen this time that you didn’t see last time? – Well I didn’t realize the electrics, I was more concerned that the electrics were on the skirting board, not the live wires everywhere! (laughs) – Yeah. – And I missed the fact that that didn’t have a window in it. (laughs) – You missed the fact it
didn’t have a window in it? Okay then. – I reckon maybe 30 grand to do the flat. – 30? – Is that too? – I think 30, you’d comfortably do it. – Okay. – And I think you’d also get
the roof done for that as well. Five grand for the outside, electrics two, top end. What do you reckon to heating? – I’ll need a new boiler, cause the PC’s low on
this property as well so– – (laughs) Will need a new boiler! – (laughs) I definitely need one of those! – That’s not a boiler, that’s
a, well it is a boiler, that’s electric heater. – Where’s the boiler then? – Doesn’t have one. – Ah okay, I need a boiler. That’s a point, I’ve
not seen any radiators. – No. – So I’ll need radiators, heating. What would you put, electric heating? – Yeah, could use low energy electrics. There’s plenty of really
efficient low energy electrics. Cause if you’re going to go
and stick central heating in that’s anther two, three
grand, two and a half minimum. I’m going to day outside five, electrics, two. But if you’re going to
put electric heating in, I’m going to say three.
– [Abbie] Yeah. – Kitchen, I’m going to say
two, max two and a half. So where’s that now? That’s around, we’re up
to about 10 in total. – Yeah. – We need to do some internal re-modeling and some re-plastering, five max? – [Abbie] Yeah. – So I’m going to say 15.
– [Abbie] Yeah. – New bathroom, two.
– [Abbie] Yeah. – My budget, to do this, to take it from
a one-bed to a three-bed is 20K.
– [Abbie] Yeah. – You know what I’m going to say. – [Abbie] Yeah. – I do have some concerns that
I’d want some solutions to, like them steps coming in are very steep and they’re okay now cause it’s dry, what’s that going to
be like when it’s wet? Or icy?
– [Abbie] Not nice, no. The whole property’s
available for how much? – [Abbie] 110 thousand. – 110. And if we split the shop and the uppers. I know the seller won’t, cause she’s just selling it as one thing. – Yeah. – If you put, what’s the
shop rent do you think? – Shops rent for around
here about £600 a month. – So that’s seven-two. So if we said 70 grand was the shop? – Yeah. – And then 30, 40 grand is this bit. – Yeah. – If you’ve paid say, 40K for
it and you spend 20 on it. – Yeah. – You’re at about 60, aren’t you? – Yeah. – And then if it’s worth 80 or 90. – Yeah. – You’re going to get all
your money out, aren’t you? – Yes, yeah. – And you’ve got a three bedroomed flat. – Yeah. – All right, see you downstairs. (upbeat music) You had quite an interesting chat with the owner just at the end there, didn’t you? – Yes, yeah. – So, what was she saying to you? – So she was saying she’s got some, so I was telling her the reason why we’re having a look round
and my surveyor’s coming out and a builder’s coming out and telling her that I buy property and she told me that one of the ladies, that she does her hair for, has 30 properties that
she owns, around here, but she’s wanting to get rid of them, or start to get rid of
them out of her portfolio because they’re becoming
too much hassle for her. – Right. – And she wants to retire really. – What are the top tips
have you got for anybody looking at a property like this? I mean, I know you’re
big into relationships. – No, so the first time
I met her, the lady, I spent some time with her
cause I need to understand her pain points and so, where
I can come in and help because property it’s
solving problems, isn’t it? – Yeah. – So I needed to understand her problem, so I spent some time talking to her. I wasn’t derogatory or anything because the flat upstairs
is a bit of a mess but I wasn’t derogatory, I was just really nice and understanding. – Bit of a mess? – (laughs) She had tenants that wrecked it but it’s her that’s actually plastered it. – Really? But told her to stop skimming
it, yeah cause someone will– – She’s pretty good!
– Yeah! – See if she wants to do the rest. – I said that to her. So yeah, so I’m warming her up because I haven’t put any deal
in or anything yet to her, so I need her to know that
I’m legitimate, I’m credible, I’m really interested in the property, she’s not just going to get an offer then I’m just going to disappear. And then I said to her that the builder and surveyor is coming out, so my offer will then be in, subject to everything
being okay after that. – Good yeah, cause you’re
really good at that and many people struggle with that so– – Yeah. – You know, everybody watching this, just learn from what Abbie does. – The whole reason why I’m
interested in commercial is cause I usually just buy houses and I’ve kept to residential. But I know commercial property investing is the next level for me to go up to and the reason why I like commercial is because a commercial
tenent is responsible for the building and responsible
for everything in it, not the apartment but the shop. So I don’t need to refurb the commercial apart from some of the outside because the commercial tenent
will decide how they want it. So having a quick chat with Paul, I wondered whether Domino’s
would be interested but it’s a bit small for them. But Paul said a Greggs
would be quite good because you’ve got a Cooplands there,
and it’d fit and it’d match. Or I thought, there’s
still a need in the village for another hairdressers, beauticians. It could be like that and
the shop could be really nice for a hairdressers, beauticians. (swoosh) Thank you so much for staying
with us for today’s episode. I am super-excited about this property and I cannot wait to buy it now. And then for you guys that have
tuned in, in the link below, we have put where you can download “Paul’s Property Pension Guide” that can help show you, if
you want to do the same, how you do it. Now, next week’s episode,
we’re going to do the numbers. Does this commercial shop and
apartment work out to a deal? Will it give me the returns that I need? And will it make a sound investment? Find out all about that next week. And for now, if you haven’t already, hit the subscribe button and I’ll see you next week! (upbeat music)

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