Commercial valuations have become one of the most talked-about topics in property investing. But what do they actually mean and why are so many beginners chasing them? In this episode of the Property Developer Show, Luke Curtis, Founder and Director of VAST Commercial Finance, gives a broker’s honest view on valuations, property finance, and how to get your first deal funded the right way.
What is a commercial valuation?
In simple terms, a commercial valuation determines the value of a property based on its income potential, rather than just its bricks and mortar. They’re often seen as a shortcut to higher valuations and bigger loans.
Many new investors hear about “getting a commercial valuation” in property training courses and assume it can be applied to any deal. Luke shares how this misconception leads investors to structure deals that don’t stack up when it comes to funding.
Property training: is that £50,000 better spent as a deposit?
Luke sees it often, new investors spending tens of thousands on property education programmes, only to end up confused about financing. His advice? You can often get the same knowledge by speaking directly to a finance broker, attending events like the Property Developer Show, or watching free educational content online.
Before spending big on education, think about what that money could do as a deposit or refurb fund instead. Often, the best insights come from simply speaking to people already in the industry. As Luke says, “There are usually four to six finance people at any networking event, have a coffee with them all.” You’ll be surprised how much you can learn for free just by asking the right questions.
How to put together a strong finance application
If you’re preparing to fund your first deal, Luke breaks down what a strong finance application looks like. It’s not just about numbers, it’s about showing lenders you understand your project, your exit strategy, and your contingencies.
A clear, realistic application should include:
- A detailed breakdown of the project costs and timeline
- Evidence of experience or professional support on the build
- A clear exit plan, whether refinance or sale
- Contingency funds and risk management
The more confidence you give a lender, the more likely they are to fund your deal.
Market trends and interest rates: what’s ahead
Interest rates have dominated conversations since COVID, and Luke shares what he’s hearing directly from lenders. Many expect rates to stabilise or drop slightly over the next few months, but the key, he says, is to build your business model around today’s rates rather than waiting for change.
He also highlights growing interest in semi-commercial and industrial units, as investors look beyond residential for stronger yields and more stable tenants.
Watch the full conversation
Luke Curtis brings clarity to some of the most misunderstood topics in property finance, from commercial valuations to finance applications and market trends. Watch now and don’t forget to subscribe.
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