Podcast Summary: Deji Nehan & Alastair Hoyne

?? 10 Valuable Lessons from the Auction360 Podcast

1. Property finance can be used to unlock value

?? 03:02 – 04:30

Alastair explains that his experience in structuring deals extends beyond traditional property finance. The key lesson is to look at the opportunity and the value that can potentially be created, rather than viewing finance simply as a way of borrowing money to purchase an asset.

2. Lenders look at more than just the borrower

?? 09:58 – 11:03

The discussion highlights the importance of considering the asset, purchase price, existing value and proposed value-add strategy. A borrower's circumstances matter, but so does the story behind the transaction and what the investor intends to achieve with the property.

3. Below-market-value purchases can create different financing opportunities

?? 11:34 – 13:28

Alastair explains how specialist lending can work where a property is genuinely being purchased below its open-market value. The important point is that investors need to establish that the discount represents real underlying value, rather than simply assuming that every cheap property qualifies as a below-market-value opportunity.

4. The way a commercial property is structured can affect its value

?? 18:34 – 20:57

The conversation explores commercial properties such as social housing, supported living, care homes, hotels and other income-producing assets. Alastair explains how structures such as OpCo/PropCo arrangements can potentially create an investment valuation by separating the operation of a business from ownership of the property.

5. Don't wait until after valuation to think about whether the deal works

?? 41:32 – 44:54

One of the important financing lessons is the need to understand the lender's underwriting process before committing significant money to a transaction.

The discussion highlights a potential problem where an investor pays for a valuation, only to discover afterwards that the lender will not proceed because of other underwriting considerations.

Lesson: Understand the lender's criteria and get as much of the transaction assessed as possible before incurring unnecessary costs.

6. “100% finance” does not necessarily mean you contribute nothing

?? 45:17 – 48:30

The podcast tackles a common misconception around 100% funding and collateral.

The headline percentage of a loan does not tell the whole story. Depending on the transaction, lenders may require additional security, equity, collateral or other conditions.

The lesson is to understand exactly what “100% funding” means for the specific deal rather than relying on a headline figure.

7. Preserving your assets can be part of good financing strategy

?? 49:12 – 51:04

Alastair discusses how lending against the underlying value of an asset can potentially reduce the amount of additional assets tied up in a transaction.

This leads to a broader lesson: investors should consider how much of their existing capital and assets they are committing to one transaction, particularly when other opportunities may become available.

8. Don't allow auction excitement to destroy your numbers

?? 53:25 – 55:34

This is one of the strongest practical lessons from the episode.

Before attending an auction, investors should have their finance and due diligence in place. An AIP (Agreement/Application in Principle) may not necessarily mean the funds are guaranteed for the particular property.

The speakers also discuss the danger of becoming emotionally attached to a lot and continuing to bid beyond the predetermined figure.

Set your numbers before the auction—and know when to walk away.

9. Your maximum bid should be determined by the deal, not by other bidders

?? 54:36 – 56:34

The speakers use an example of a property expected to be worth significantly more after title splitting and renovation, but which ultimately sold at a price that potentially undermined the investment strategy.

The lesson is simple:

Someone else's bid does not determine the value of your investment.

Other bidders may have completely different objectives—for example, a developer may be willing to pay more because the property has strategic value to them.

10. Property investment requires discipline, analysis and patience

?? 51:04 – 52:23 & 1:03:25 – 1:05:10

The closing section reinforces the importance of due diligence, financial discipline and long-term thinking.

Investors shouldn't assume that every apparently attractive deal must be pursued. Sometimes walking away from a transaction is part of the investment process.

The conversation also explores thinking beyond maximum leverage and considering how equity, value creation and profits can be recycled into future investments.

Connect with Alastair Hoyne:
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Connect with Deji Nehan:
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Connect with Auction360:
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? 10 Frequently Asked Questions Based on the Episode

1. What should investors consider before arranging property finance?

They should consider the property, purchase price, valuation, proposed strategy, required works, financing costs, borrower circumstances and, importantly, the intended exit strategy.

2. What is below-market-value finance?

It refers to financing a property that is genuinely being acquired below its open-market value, subject to the lender's specific criteria and assessment of the transaction.

3. Does 100% property finance mean I need no money or assets?

Not necessarily. The episode explains that 100% funding can involve other requirements, including additional collateral or security depending on the transaction.

4. What is the importance of an exit strategy?

The exit strategy explains how the borrowing is expected to be repaid—for example, through a sale, refinance or another planned route. It is an important part of assessing whether the overall financing structure makes sense.

5. Why can an AIP be insufficient when buying at auction?

An AIP or illustration may indicate that borrowing could be possible, but it does not necessarily mean that the particular property and the borrower's complete circumstances have passed the lender's underwriting requirements.

6. Why is valuation important when arranging property finance?

The valuation helps establish the lender's view of the property's value and therefore can influence how much they are prepared to lend.

7. Can commercial properties be valued differently from ordinary residential properties?

Yes. The episode discusses situations where the income generated by a commercial property and its operating structure can influence its investment value, rather than looking solely at the bricks-and-mortar value.

8. What is an OpCo/PropCo structure?

It is a structure in which an operating company (OpCo) runs the business while a property company (PropCo) owns the property and leases it to the operating company. The podcast discusses how this can potentially support an investment valuation in appropriate circumstances.

9. How can investors avoid overpaying at auction?

Set a maximum price before the auction based on the numbers, finance costs, expected value, works and desired return. Most importantly, be prepared to stop bidding when the property exceeds that figure.

10. What is the biggest lesson from the podcast?

Don't focus only on finding a deal or getting the money. Understand whether the entire transaction works. The property, finance structure, costs, value-creation strategy and exit should all fit together before committing to the purchase.