Michael Primrose: The Property Finance Guy

Register your interest in Serviced Accommodation Discovery Day here, and a member of our team will get back to you to confirm your place at your preferred date.     Michael Primrose, “The Property Finance Guy”, arranges funding and finance for serviced accommodation and other types of property investment. Michael started off as a conveyancer focussing on residential purchases but became disillusioned with the monotony and took the leap into finance.  In this special interview, Kevin talks to Michael about his methodology, his approach to investment, the importance of building a successful power team, and some of the tools he utilises to grow his business and portfolio. KEY TAKEAWAYS One of the most powerful tools for potential property investors is development finance, which allows you to borrow towards the buying cost and the build cost.    Being a younger business owner, and having not come from the same background as many established investors, Michael has a different perspective on property investment. This unique perspective allows him to look at prospective deals in more creative ways.   People are more often than not of the belief that serviced accommodation is a house that’s let out by the room. But in Kevin’s opinion, utilising a property this way makes for an increase and over complication of your workload. Also, SA does not necessarily mean by-the-room. In fact, renting out a whole house to visiting work men or business people can be less work and more financially lucrative.   Private investors are a good route to go if you’re looking to establish a Rent-To-SA deal, but they can be difficult to find. Alternatively, Richard recommends equity crowdfunding, which is essentially offering the same deal to lots of different people in a FCA compliant way. The easiest way of describing this method is that you are selling shares in your company for a fixed rate return for a specific amount of money.   There is a huge shift in the market at the moment that allows less experienced investors to get into serviced accommodation. Interest rates are low and mortgage lenders are starting to understand serviced accommodation and HMOs as a business model. Michael also points out that serviced accommodation mortgages are easier to obtain in a personal name rather than a limited company.    Section 24 does not affect serviced accommodation income, therefore you can buy property for the purpose of using it as serviced accommodation in your own name and you will not be affected by Section 24. Make sure you have a good accountant, who  can offer invaluable advice on how to take best advantage of this.   BEST MOMENTS “It’s all about leveraging the right types of finance” “It’s all about being creative in putting together deals that other people may not see” “I want to dispel the myth that SA is by-the-room” “Crowdfunding is great for investors, because they make a massive return on their investments” “Bear in mind that a lot of the SA lenders at the minute will only lend into a personal name. The limited company options are more restricted” VALUABLE RESOURCES The Serviced Accommodation Property Podcast Michael Primrose – Facebook Michael Primrose – Instagram The Property Finance Guy ABOUT THE HOST Kevin Poneskis, also known as the Property Soldier, has been a full-time property investor and mentor since 2011. This happened after he served the army for 24 years. He spent majority of this years in the 29 Commando Regiment RA and finished his time in the army as a Regimental Sergeant Major. Even during his time in the army, Kevin was already building his property portfolio and educating himself everything about real estate investments. Right now, he is writing his book Property Soldier, in which 100% of the profit from the book will go to homeless veterans, and hosting The Serviced Accommodation Property Podcast which educates people who want to explore and earn from serviced accommodation property investing. CONTACT METHOD Kevin’s Facebook Kevin’s LinkedIn