In this month's Deals Deals Deals podcast, we welcome Grant Hutchby who with his wife Kay make up KG Short Stay, based in South Wales.
Grant shares how he managed to leave his corporate career in 2019 to focus full time on their business and how they have both successfully joined the Property Entrepreneur Board to help them level up their business.
They manage over 140 properties for their clients and their own portfolio in South Wales and in selected cities in England. We discuss their ideal type of property, the service users they specialise in and all the key metrics within the business like average length of stay and all the typical costs as well as how Grant analyses deals. We also discussed the VAT situation and potential issues to avoid.
Grant and Kay also Joint Venture with clients where they add their knowledge and expertise and the client adds the cash funds to purchase the property, refurb and other costs etc and they split the profits on a 50/50 basis.
Grant takes us through a recent example of a 6 bed pub with a 3 bed cottage where they added 6 studios and created £150k of equity, with over £70k pa of cashflow whilst using none of their own funds.
The key numbers are :
Purchase price £370,000
Refurb £160,000
Other costs £20,000
Total £550,000
GDV £700,000
Equity £150,000
Revenue £190,000
Operating costs £99,000
Flat rate VAT £19,950
Profit before tax £71,050 shared with JV partner
This equates to about the current average earnings based on Office of National Statistics , £36.660 on one deal.
Want to contact Mark or his guests?
www.thepropertybrokerage.co.uk
mark@thepropertybrokerage.co.uk
Grant Hutchy
WhatsApp: +447866365040
Discovery Call: https://calendly.com/granthutchby/discoverycall
Email: grant@kginspiredproperty.com
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