Trebling Equity In Two Years Through Serviced Accommodation And Out Of The Box Opportunity
Mel Stanton saw value in property investing, but with no set strategy in mind she was concerned by the direction she was heading.
Following guidance from Touchstone Education’s Paul Smith she was awakened by the huge number of opportunities that property had to offer.
Following a turn to the serviced accommodation strategy she has now trebled her money in just two years.
We spoke to Mel to find out more…
Small Profit From Sale To Millionaire Through Property Investment Training
Mel began, “In 2011 we bought a two-up two-down property in Eastleigh for £150,000 and in 2020 we decided to sell it for £100,000 profit.
“I wanted to buy a house on the Isle of Wight but I had no clear strategy in mind. I had seen (Touchstone Education founder) Paul Smith on Facebook and I booked onto the 6 Figure Summit (Wealth Through Property) course.
“I decided to buy the Mastermind mentoring program and I had to put the fee on a credit card. This was very out of character for me and it took a while to realise the value… two or three years later and I am now a millionaire.”
A Property Opportunity That I Couldn’t Turn Down
She continued, “We bought a five story, 6-bedroom house, sleeping up to 12 people in the posh part of Cowes on the Isle of Wight. It was a solid house but in need of total renovation.
“We couldn’t buy on a commercial basis and had to buy in our personal names or risk losing a fantastic opportunity.
“We borrowed £75,000 from our main residence, moved in during the lockdown and completed the refurbishment. After two years we have a solid serviced accommodation, turnover of £59,000 and introduced the property to an LLP/Ltd company structure, at a cost of £7,000.”
Tiny House Revolution and New Serviced Accommodation
Mel is forward-thinking and has significant plans for future property opportunities.
She added, “The Isle of Wight house has a stone outbuilding and also our main residence has a quarter-acre back garden.
“It occurred to us that the cost of living had become an ever-increasing problem and this began our ‘Tiny House Revolution’.
“The concept of this is that we’d create small, separate dwellings within the boundaries of properties which would allow main buildings to turn a profit, whilst my family would always have a home.
“We gained full planning permission for a 2-bedroom detached bungalow midway through construction.
“In addition we are buying a second serviced accommodation property on the Isle of Wight which has an attached stable block. This is perfect for self-contained dwellings. It is being funded by our SSAS. I am transferring all of my old pension funds and I will borrow the deposit for the next serviced accommodation from the SSAS.”
Property Equity To £1.1 Million
We asked Mel what went well and what the challenges were.
“Deal sourcing, the renovation and developments and getting group bookings went well. The challenges were financing and power team sourcing,” she said.
Mel concluded, “Our tiny house revolution is still a work in progress, however as soon as we have completed our second serviced accommodation, our property equity would have increased from £450,000 to £1.1 million within two years.”
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