In today's episode we are joined by three WealthBuilders Community members: Suzier Carter, Dan Taylor, and Mark Stokes. Make sure to tune in if you want to find out about the pros and cons to investing in commercial property over residential, and our guests' insight into commercial property.
What are the advantages and disadvantages of investing in commercial property over residential? There are certainly different, more sophisticated rules, and some of the advantages include greater tax allowances, and the ability to invest using your pension [SSAS]. In fact, you’ll learn how commercial property really lends itself to working well with both the pension and business pillars. You’ll hear from three members of the WealthBuilders Community who share their insights into different types of commercial property investing opportunities that are available, including commercial to residential, mixed use properties, office space and the industrial sector. Is investing in commercial property more risky than residential? Listen to find out!
Show contributors - Suzie Carter, Dan Taylor, Mark Stokes.
Resources Mentioned in this Episode
https://www.amazon.co.uk/Commercial-Residential-Conversions-essential-developers/dp/152722788X
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Unknown Speaker 0:01 The purpose of wealth talk is to educate, inform,
Unknown Speaker 0:04
and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Unknown Speaker 0:18
Welcome to Episode 30 of wealth talk. My name is Christian Rodwell, the membership director of wealth builders and I'm joined by Mr. Kevin Whelan.
Unknown Speaker 0:26
Good afternoon, Chris, good to talk to you.
Unknown Speaker 0:29
Hello, Kevin. So, Episode 30. How did we get here so soon?
Unknown Speaker 0:35
To shocker, it's been going for quite a while now. I'm enjoying it, though. I gotta say we've had some great feedback as well, not just about our interactions, which are often quite humorous, but also the interaction of our contributors, you know, how much great value they're sharing? And we want to thank them for that,
Unknown Speaker 0:53
don't we really, most definitely. And we continue this week, talking around the pelicans, which is property portfolio. I mean, moving on to the strategy of commercial property. Now, for many people, they will have perhaps, dip their toe into the world of property through residential and commercial feels like a big step. Kevin, is it? Is it so?
Unknown Speaker 1:18
Well, it's different, but it's the same. I mean, if you think about what have we learned so far, about strategies we've learned by to let money you can buy to lead to us, you know, you can buy commercial property and rented to a single company, you've heard about a GMOs, you can do eight shows in commercial property, you can rent multi, multi rooms to small businesses. We've heard about what else we heard about. Maybe we need people doing flips. So you can you can convert property and completely change the face of property. So very similar things in terms of what can be done differently creativity, of space, the creativity of getting higher value from the space. And you heard last week, I think, from Lee Pemberton, who converted crusty old property from crusty old people into something that's renovated and contemporary and new. Since this, it's the same but is different. What very different is the market is less crowded, there are less people doing this, because in order to take that higher step, where the biggest tend to be larger, there's there's planning risk, there are other risks involved, development risk, you know, things that are not easy to do, without really investing a lot more time in the education side. So there's less novice landlords here. And as a result, the market is less crowded, so there's less competition. So I think that's interesting, you still got some very interesting things to learn things like, you know, types of process, they usage, language, all of its own, like permitted development, the ability to take a commercial property in its current state, and completely change it to residential. So in that way, it's, you know, it's a facilitator, an enabler of residential property through permitted development, and many of our clients, and many of our students go on to do that, and some are experts, and I'm sure we'll hear from some of them today. And the other thing, which interesting, just in straightforward commercial lead property, if you think about letting a property to a single family unit is an example of, you know, if anything goes wrong, you got to fix it. If there's any, you know, you've got to pay for the building insurance, you've got to pay for ground rent, and all those sorts of things. If you are a commercial property owner, there's something known as an f5. I lease you heard of that, Chris? Before, and therefore,
Unknown Speaker 4:03
I haven't come across that now.
Unknown Speaker 4:04
And therefore, I least means a full repairing and ensuring nice. And what does that mean? Well, it means if I'm the landlord of a commercial property, and I say to the tenant, I grant you a lease to occupy this property for three years, say, but all the repairs, you pay for all the insurance up, and you pay in full, full repairing, full ensuring, and you must put it back to exactly the same state as it was before. So when I take it back off you in three years or five years or whatever, then you know, you need to put it back. So it's exactly the same condition. And by the way, any rent reviews that happen around, you're going to go upwards. That's a brilliant way to get more security and a decent potential return, in a way you don't get in the residential space. And we told also last week, about you know, the commercial side of Lee Pemberton, again, was talking about his properties don't attract the same tax treatment. Well, commercial property is not buy to let. So again, there's much more tax freedoms, and creativity is around that. But also things like tax allowances, sometimes called capital ounces, and many more things that you can write off so. And also, you can use your SAS, you've heard so many people talk about SAS, SAS commercial property, a brilliant together, SAS and residential property bit more of a problem. So I don't know how many benefits there. We just real doctors in a few minutes, 567 minutes that make this definitely worthwhile exploring as part of your overall property building strategy.
Unknown Speaker 5:50
Okay, that sounds great. So why don't we find out bit more about some of those great benefits from some of our contributors today?
Unknown Speaker 5:58
Okay, so I'm with Dan Taylor. Welcome to Health talk, Dan. Christian, how you doing? I'm very good today. Thanks, Dan. Now, Dan, I know you're a client of wealth builders been working with Kevin for a number of years. And in particular, you are focusing on the commercial area of property. So what attracted you to commercial property in particular?
Unknown Speaker 6:18
Well, commercial property for me, number one is, it's a, it's a kind of hedge is a protective place. And one of the biggest reasons why I love commercial, or just let me back that up. I come from a business buying background. So I've done a lot of leveraged buyouts and business buying predominantly include property as the underlying asset class. So what I love to do now is combine or fuse business buying strategies with creative commercial property plays. And to give you an idea why I love commercials so much. Just let me tell you that one, one deal that happened, I think, was 2005 or something. We'd be doing a series of leverage players are you buying businesses we bought number we had about 30 of the time. And out of that they already from 16 were freehold properties. So we're already on these freehold properties. We're already on the businesses, and it was doing really well. Though, we did one creative commercial property strategy, though this is not reforms, not the risk of the firm's not the the risk of commercial conversions, we did one strategy, and we increase the value of that property portfolio by 8.4 million. And it was done in a day. No, no reaffirms no connection, margins, just simple, you know, real simple strategy. Now, we already own the properties. And we increase it by a point for one day miles, and really the basis of why I love commercial, you can really force tremendous appreciation in the asset class, and do start, you know, do work once, and then it's very much setting for game. Like, for example, I'll give you another case study, I want to say and forget why the hassle free, got one property that we rented out and June 2013, that it's just over six years ago, I've never been back to that property once. Nor do I tend to go back to that property anytime soon. And you know, it sounds a bit. I don't know, contrarian is thinking about disruptor. But it is because not all commercial is good. Because CNCV is up and down the high street, there are brands I've been writing for donkey's going out of business life Writing Center. So you really have to understand and know what you're doing. And you have to buy commercial property that number one, you're buying value number two, you're adding value. And number three, is going to have moats around the predictive modes that you know, ward off the big cat out there. And the big cat is the current x correction, the hours of things and technology, because that's changing our human spending by others. So we as humans are, you know, changing or evolving the way we spend money. And that evolution of the high street is happening right now. So unless you're on it, nor you're doing, it can be a dangerous place, just like anything else, you have to know what you're doing price, but after it's done, or you pick the right property, where you're buying value, adding value, you can force massive appreciation into things related the risk of reforms, risk of America versions, and when the works done at the beginning, it's very exciting to forget, and the kind of people like working with people, business owners, and the homicides patient. And, you know, if you have a business, and if you have a suspension, and you have commercial property, those three are, you know, create a really compelling story of how you can create income, grow your wealth, through tax evasion vehicles, so you have more money in retirement than life at your money's going to write. And, you know, it's all about mine. They're the kind of people I like working with. And one champ criticism is going to the program. And I told him to set up a SAS, he's got a business that creates income, explained who to go to, which is you guys said I wanted Gavin. He said if he says that he come back. And we've already increased his income. He's automated income into his SAS from 1000 a month to 5000 a month. And he has a national company paying on that.
Unknown Speaker 10:22
Yeah. Now, it's always good to see how the pillars can interact with one another. And, and I know pensions and the business and the property pillar, as you just said there, you know, they they can work really well. When people think of commercial Dan, they think perhaps it's it's pretty advanced strategy, is that correct? Or who would who would you say is suitable for being ready to start looking at commercial deals?
Unknown Speaker 10:48
What for me, if you want to use the most advantages that you have at your potential disposal, there are only two marks he approved, you know, strategies really vanilla kind of stuff. There will be business listeners, SAS trustees, and existing residential property investors. Because, you know, a lot of people think you've got to start, you know, by two legs, buying probably mortgage HMO was a serious combination, and work your way up to like American bears and then moving emailed, and then ultimately, potentially do some commercial, which is completely not the case. Right now, residential is under attack. And residential. For me it's very linear, where commercial multi dimensional, and you can do so much more with commercial you got so many more tax breaks. It's almost lonely three lately, there's 3 million ready investors, and there's 100,000 commercial investors. So the air is thin and commercial, because everyone perceives as maybe complicated or too much profane. But if you're doing property Anyway, why don't you kind of, you know, go with the tide go with the flow, as opposed to being crazy, where it's almost like because of the the politicians are, you know, attacking landlords, quite fiercely. You're swimming upstream, that, you know, it's hard work. And if you're going to do the same property, you know, an asset class called property, then, and you want to use all the most tax efficient, you know, tools, and you're buying glasses like businesses, and I like LP, ceiling, least bikes and all these kind of things, then commercial is the only place you can use all the tools in one strategy.
Unknown Speaker 12:30
That's fantastic. Well, thanks so much for sharing that with us today, Dan. Yeah, no problem at all. I'm with wealth builders client, Susie Carter. Welcome to wealth talk, Susie. Thank thanks, Christine. And Susie, I know you've got lots of experience in the commercial property sector. Would you mind just giving us a bit of background as to how you first got into that area?
Unknown Speaker 12:48
Yeah, sure. Well, I'm a charge surveyor, I've been involved in commercial property for almost 25 years now, I've worked in the corporate world for various companies, including being key where I did lots of developments for them, and securities, where I used to manage a portfolio of where retail warehouses and shopping centers. And but I kind of got my own investment company now, and which I set up about almost five years ago. And
Unknown Speaker 13:15
is there a particular strategy or niche within commercial property that you focus on Susie,
Unknown Speaker 13:21
the important thing about the commercial property sector and any property sector really is to kind of watch the market and look out for the opportunities and kind of maybe don't go where the horses are, but maybe kind of know the market well enough, so that you can actually kind of highlight either kind of go into where the niche opportunities are, or perhaps where, you know, the forthcoming opportunities might be kind of going forward. So and in terms of kind of where I see the market at the moment, obviously, there's some fantastic opportunities to buy at retail, cheap, and, which is, for obvious reasons, I think in terms of where the market is, but, you know, if you've got alternative views, strategies for those, especially where they can be converted to residential, I think this is an amazing opportunities for those at the moment. And all I would say is that if you are buying retail, to keep us retail, and make sure you have a pre letting place or, you know, you've got a pretty damn good idea that there's a demand for that property before you buy it. And, and the other opportunities I can see in the market are, you know, there's, there's some fantastic opportunities in the office sector, funnily enough, there's been so much PD and offices that actually, and in terms of kind of buying up opposite offices is actually quite large office demand across the country. So if you're kind of looking to buy some offices, there's this you know, some reasonable demand. And same goes for mixed use actually, and, you know, kind of retail with offices above or, with ready above, etc. And then then, of course, the industrial sector is, is going bonkers at the moment, so is incredibly expensive, but you still can find some quite good deals out there to put your sass in. So you know that that is only going to be a growth sector in the industrial world. So, you know, kind of set I'm saying, looking out for opportunities in that in that arena as well.
Unknown Speaker 15:14
And you, you mentioned the word SAS there at all, it often crops up, even if we're talking about one of the other pillars, and how does SAS and commercial property work well together,
Unknown Speaker 15:24
Susie?
Unknown Speaker 15:25
Well, and obviously, you can invest yourself directly into commercial property, whereas you can't with residential and, and you can hold it within your SAS. And obviously, that is a fantastic opportunity, because you can use, you know, a good chunk of your SAS to invest in a property and, and I have to admit, I haven't actually done it myself, but I believe you can also get mortgages in your SAS etc. So in terms of direct investment in property without kind of having to lend to limited companies, etc. It is it is a great strategy.
Unknown Speaker 15:59
Now, you say commercial property is for and who is it not for Susie in terms of experience?
Unknown Speaker 16:06
Yeah, that's a really good question, actually. So and i think i think that experience is an interesting thing, isn't it, because you can get that experience by working with people who know what they're talking about, and getting educated. So that would be kind of the first thing I would say is, you know, really try to if you're barking on commercial property, is quite a wide ranging sector, and quite a fast moving market. So I would just say, you know, make sure you get some knowledge. And, and, you know, I think that if you if you've done a fair few investments in residential, there's nothing holding you back from buying commercial at all, it actually it is a different world from ready, but it's it and it's got its own rules and regulations and laws and everything. So you know, that's why I say you must know what you what you're talking about. But it's not actually as complicated I think a lot of people make out. And so I think that's what puts people off. I mean, it's definitely is more more sophisticated. And but the top the absolute top tip I would give you if you if you haven't got necessarily kind of years of experience in commercial property and want to invest in it is just Employee Services as some really good professionals. So obviously, a good commercial property lawyer is it is an obvious one and the same with a broker. But they want a lot of people in the rest of the world don't realize is that actually, it's very common place in the commercial property world to employ an agent to act on your behalf when you're acquiring something. And, and you know, they can be national local agents, but you just need to get somebody that knows that town and knows that type of property really, really well. And they will be they will be invaluable, because they will have direct line to all the occupiers, they will know what similar properties sold for so they're probably save you some money on the purchase price. And they'll be able to help you with your valuations, etc. And yes, you will have to pay a fee. But in my view it you know, especially if you're just starting out, it's coming worth its weight in gold. So I really would say that's kind of a top tip if you're starting.
Unknown Speaker 18:04
Definitely. Thanks so much for sharing with us today, Susie.
Unknown Speaker 18:07
Okay, no problem. Thanks for having me.
Unknown Speaker 18:11
So I'm with wealth builders client, Mark Stokes. And welcome back to wealth talk, Mark. Thank you
Unknown Speaker 18:16
very much, Christian, are you? Well, I'm good. Thank you, Mark. Today, we're talking about commercial property. And you've got experience from both sides. I know you've worked, you know, previously in that sector and see now and working on your own project. So would you mind just giving us a bit of background about that, please?
Unknown Speaker 18:32
Yeah, I worked for 25 years in corporate life, constructing power stations, data centers, and obviously, that involved a huge amount of commercial real estate. In fact, around about 3 million square feet of commercial real estate was converted redeveloped in one way, shape, or form. And since retiring from those seven companies in 2015, we've gone on now to do another 1111, or 12, developments and long term commercial acquisitions. So yeah, so it's very much what we do, you know, something we really love with with ourselves, and, and then our other companies as well.
Unknown Speaker 19:11
So, Mark, for those people listening who perhaps, you know, haven't yet ventured into the world of commercial property, what are some of the different strategies that are available to people?
Unknown Speaker 19:22
Yeah, so a very different array. And quite often the different mindset as well, certainly, who you're contacting changes. So we're working with extensively with commercial agents, very different to real estate agents, and an estate agents. So so that's a big difference for for us. And we're dealing with a lot larger numbers in the field that we operate in. So our acquisition value would be in between half 1,000,005 million purchase price. And then we'll be converting or redeveloping or added value in in many different areas. But I'll welcome back to those two words added value. Doesn't matter what property strategy you're at, if it's an asset based property strategy, and you can add value, then yeah, that's the ultimate underpinning foundations of commercial property. And one of the largest areas that we can do, apart from the Office of Planning is long term leases. And in fact, in a recent development of five commercial properties, we repaired the leases, the leases are either non existent, I'm talking about long term full repair and ensure leases. So we're restructuring leases, and contracting our commercial properties out to other parties who will take full responsibility for all the building and fabric for 510 15, even 18 years. So becomes not I wouldn't say hands off passive, I'm not particularly familiar with those words, you know, you still operating a business, but you can transfer risk and liability for long periods of time to parties with a great covenant strength. And that means great leverage. And as anybody involved in property knows, you know, great debt and leverage is a wonderful thing.
Unknown Speaker 21:17
And with that, with that mark, does come greater risk as well. And what are some of the threats or changes that someone might need to be thinking about within commercial?
Unknown Speaker 21:27
Yeah, the risks are different, whether they're greater or not, I think it depends on the context of, of your knowledge and your education. And I know you're very passionate about education, and making sure you're on top in a black belt in any strategy. And we most certainly, very much focus on that continuous evolution of training some of the risks, and clearly, we're seeing a lot of volatility on the high streets at the moment, the economic climate and the I'll put it delicately the political uncertainty as well, I'm not quite sure what our politicians are doing right now. But that's all having an adverse effect on the economy. But there is very much a transition not not just the economic level, but also in the way we by the way we shop. I mean, Mrs. Stokes has more brown boxes from Amazon being delivered to our house. And you can shake a stick to a great example where our retail high streets are often referred to as Amazon shop fronts, where you'll, you'll go and have a look at something there, but then you'll get your phone out and buy it on the way home at a cheaper price on on the web. So but that gives us opportunity, it might be a transition free opportunity from high street to a good friend of mine does do some fantastic work in large distribution centers in the Midlands. And, you know, some of these, some of these buildings are absolutely enormous. In fact, somebody used to tell the family member when I was very young that the only man made object you could see from the moon was the Great Wall of China. I have no idea whether that was true or not. But I suspect some of the IKEA and Amazon warehouses are being built now. You know, certainly visible from from space.
Unknown Speaker 23:17
Yeah. And and looking forward Mark into the next five or even 10 years. Where do you see the future of this sector?
Unknown Speaker 23:27
I think you've got to be flexible. We like small, small, nimble units. We do like the local economy rather than the macro economy. But you need high covenanted strength, strong counter parties, on all the contracts, we like a mix commercial properties great, like commercial properties to convert to residential, we do hold a few HM owes. So I think having balance and diversity in any of your portfolio investments and property is no different. And so on holding commercial property in different areas, in different forms in different structures. And diversification across different sectors as well. You may be in the education sector, the local authority sector, prime retail, and distribution. So you become insulated to cyclical and counter cyclical movements in the market. Thanks for sharing not no problem at all.
Unknown Speaker 24:27
Okay, so three differing perspectives there on how to approach commercial Kevin, what were your observations? We started with Dan, first up there?
Unknown Speaker 24:35
Well, I think the observations across all three was the degree to which each person is really leveraged, which is a key part of the whole wealth building process, understanding where your leverage comes from. They've used their experience, you know, Dan, with experience in business, Susie, with experience is a surveyor, Mark with his corporate experience, you know, working with big projects and things from both sides. It's given them all incredible insights. Not that you need that. But it's just a great way to already be further ahead, if you like in the plan, because they've already leverage their existing experience. I think that's smart, rather than just learning things from scratch, but
Unknown Speaker 25:21
it's not a
Unknown Speaker 25:22
it's not a marketplace you can't get into because all three are really great teachers, as well as great developers in the room.
Unknown Speaker 25:31
And as we picked up last week, in the service accommodation episodes, that this is definitely a business. And Dan actually mentioned about how the pillars interacts really well with one another, you know, the business pillar, the SAS pillar and commercial property working well, exactly right.
Unknown Speaker 25:49
And, you know, one of the things I've noticed about what Dan has done is really tried to find properties where he can identify a tenant type of certain tenants, you know, like national chains of coffee, or national chains, in pizza, or national chains in pubs. And what he's found, and I'm sure he hinted out in the big story there is you can get these big brands to pay for all the work and a property you own. Because they wanted fitted out and kitted out exactly to the standards of the brand. So you can give them a shell, they'll do all the work for you. You know, so it's a reflection of being smart and identifying your tenant type. And you'll see throughout the whole discussion about property, it's all about understanding the space, understanding its location, understanding the tenant type, understanding how you can buy and add value. And this is the essence of wealth building, isn't it create, build, and protect? Isn't that kind of what Dan said, you know, you buy Well, you add, well, you protect Well, this is just a reflection of the wealth building process and action here.
Unknown Speaker 26:59
Now, something that came up across all three of our guests was the opportunities and certainly looking at the high street, and of course, the change in the retail market at the moment. And anything to add to that from your side, Kevin?
Unknown Speaker 27:11
Well, I think the essence of being an entrepreneur, as we've said this many times in the past few years, is to being sensitive to opportunities, and being responsive to where they come, which is what tempo energy is all about. And I think what we're seeing here is, you know, Susie was demonstrating that ably by talking about the market for retail, the market for offices, I think we've also talked, we see one of our contributors in a previous podcast, Chris talking about finding his tenants where there are big warehouses and distribution centers, you know, and I think all of that is all relevant. You've got to look at what's happening in the market for when we talked also about hotels and, and being able to use channel managers last week is about using technology. It's about seeing that the technology, the way people buy rooms is changed is different. And so it is here.
Unknown Speaker 28:05
And I asked Susie, obviously, some of the advantages of working together with the SAS. And obviously, Kevin, you work with many people who are leveraging their SAS to allow them to purchase commercial property. What was some of the benefits there?
Unknown Speaker 28:21
What buying a property in a sense? I think they're all Well, I mean, I could probably list dozens, but let's, let's give a few anyway, for a start, you're being able to own a property. And then any growth in that property, any rental in that property is free of corporation tax free of capital gains tax free inheritance tax, and how about that for a kickoff. The second thing is you get leverage. So you can bring 50% leverage, you've got a 300,000 parents asked, you can buy 400,000 pounds with the property. That's pretty good, you couldn't do that in a conventional pension, you're protecting the rental income, minority from any potential challenge to the business, you know, businesses sometimes get challenged, our health gets challenged, things, people get challenged, and businesses get challenged, if you protected a piece of property inside the SAS, because it can be legally owned in there, you protected it from any dangers, and you protected it for the next generation. And the generation after that, and the generation after that. So I think his property tends to be a long term hold asset. If you can hold property and assassin as part of your strategy, then you know, it's definitely one that you should discover and and try and work with remember also though, it's a great facilitator. So I know Mark, for example, has done commercial to residential conversions which the SAS is facilitated the purchase, but then when the property becomes residential, it leaves the SAS and goes to their business. And similarly, many of our clients who got mixed use properties or bought mixed use properties, where they say a shop with uppers are residential, they buy the shop in the pension, and then they'll only upwards in a business or personally. So you know, the whole value here is looking at what you can do. That creates more space. You can convert properties I've said earlier on, you know, you can go up floors, down floors, there's so many different ways and use permitted development. So you don't even need to go through planning so many different ways you can really create outstanding value whether you use your SAS or not. But definitely SAS is a good fit.
Unknown Speaker 30:38
And Mark did pick up that point about added value. And that really applies to any strategy, doesn't it not just commercial, always looking to add value where possible
Unknown Speaker 30:47
worth? building wealth is no right. So if you add that value, then you can capture some of that value. And if you can embed it whether it's holding a property, which is a long term return where it's de risked significant. I think Dan mentioned about sort of having protected moats? Well, you know, if you've got a business that's paying rent for the long term, or if you're running your own business, and you're operating your own premises, and you're paying rent to yourself, rather than paying it to a landlord, because you are both, then that's a good thing, too. So I think the right education in this space reduces the risk, because there's so many ways you can add value, and so much less competition. I think Dan mentioned the numbers staggering, isn't it 8.4 million in one day with one strategy. I mean, 3 million investors, you know it to 100,000. In commercial property, it's just a massive difference in the way there's people competing for for value. So I think, definitely, if you've got time to learn, and you take the wheel of wealth seriously, you get the right connections, you do the right due diligence, and you take some guidance as you take action. So make sure you don't make any big mistakes, then this would be a strategy, I would encourage anybody to take a long, serious look at.
Unknown Speaker 32:09
And one final point that was mentioned there by Susie was about the importance of having the right team. And she mentioned having a really good commercial broker and a lawyer. And there's the team differ in the commercial property well than it does in the residential? Well, Kevin,
Unknown Speaker 32:24
well, I think the more you see property, as a business, the more the team needs to change, you know, to stronger team, it's like the difference between, you know, playing football at non league and playing in the Premier League. And you will find people liking, you know, I was talking to mark recently. And they're not shy of spending thousands of pounds to get the right legal advice, because it's an investment to keep them safe. You know, they spend money on surveys, because they don't regard it as a cost they regarded as an investment, and having a good team. And obviously, it helps if you've got, like Mark has got a great team, he's got himself, he's got nine, got a big supporting cast of people who are helping in that process within the equity group. And each one of them is bringing something slightly different to contribute to the overall value. So you see, the further you go in this space, the more you need a very strong team behind you, whether it's a team that you engage from time to time, or whether it's the team that you have on board, including, you know, the bigger you get, the more you're looking for investors, and the more you need to deal with investors in a very well constructed and detailed way to make sure that you're not just protecting yourself, but you're protecting money from investors. And I know all of those people were spoken to today, you know, take that very seriously, indeed.
Unknown Speaker 33:47
So we've looked at obviously, the advantages of commercial property. Kevin, are there any disadvantages? Are there any things that people should be paying particular attention to? If they're thinking about moving in commercial property?
Unknown Speaker 34:01
Or look, any asset, it's got its own set of pros and cons. This isn't for everybody. Of course it isn't, the numbers tend to be bigger. I think Mark touched on that, you know, sometimes in the millions, if you've got planning, you need to understand the planning rules. If you've got heritage type property, listed buildings, you've got to understand these things, the mistakes you can make can be crippling. So you definitely want to invest more time in education here, this is not something you do by reading a book or going on a free three day course, this is something you need to take very seriously. But those who do can make massive gains, both in terms of capital. And in terms of cash flow. And the combination of being able to get that double compounding effect, if you like flows of cash, lumpy cash, and flows, a cash flow, regular cash flow can make a big difference to your wealth. And I think, you know, that's why I think it's an impressive strategy to be taking a look at the law you're willing to consider like a business.
Unknown Speaker 35:04
And we have lots and lots of wealth builders members, obviously, within the Facebook community who exercise in these strategies. So if anyone's listening, Kevin, and they want to learn more, I would suggest post some questions in the Facebook group, that'd be a good place to begin and where they've been there and able to answer and respond to those.
Unknown Speaker 35:22
Yeah, I think is there's always room to do that. Because we want to not just build up a whole series of FAQs on all of the different strategies, actually. So whatever you got a question, recognize that we're here to be in a supporting cast role, to help you learn and find your way to turn that wheel of education support, connection, due diligence and action. I hope everyone who's a regular listeners now committed that to their memory, and turn that wheel of wealth, do not cheat the wheel and enjoy that process. Because every time you turn it, you get bigger, you get stronger, and you capacity to do bigger and better things and build your wealth x minimum more accelerated way just takes over. And I think all three contributors today or evidence of that.
Unknown Speaker 36:06
So we've covered several strategies over the last few weeks. Kevin, where do we? Where do we turn our focus in now future episode, would you say?
Unknown Speaker 36:15
Well, I think probably because a lot of the overlay in the property strategies to date of really talked about tax efficiency here and tax efficiency there. Maybe we should have just a one off, find ourselves a pretty good property based accountant to give us some of the real things to avoid and things to do instant tips on being a bit more tax efficient, and tax effective as we build our property strategies about that.
Unknown Speaker 36:47
That sounds like it's a good one to me. Okay. Thanks, Kevin. enjoy talking to you again today. And I'll see you on the next episode of wealth talk.
Unknown Speaker 36:55
Look forward to it. See ya.
Unknown Speaker 37:00
We hope you enjoyed today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk slash membership right now for free access. That's wealth builders.co.uk slash membership
Transcribed by https://otter.ai