Are you interested in secret sourcing a house… for a massive discount? These sources are ideal whether you’d like to buy a house or flat to turn round and sell for a profit… or just to keep as an investment for the future. Or perhaps you’d just like to buy a bargain new house to live in yourself.
Make Money From BMV Property
With the recession property is more affordable now than it’s been for almost 20 years, in real terms. There are some incredible bargains around. But here’s a way you can buy property not just for a big discount… but for less than it is actually worth, i.e. below market value.
That’s right. Not for the estate agent’s ‘window price’. Not even for a big discount on that. But for less than it is actually worth!
It’s known as BMV or below market value property. And it’s a booming area right now for those in the know.
So how do you buy a property for below market value?
The basic idea behind BMV property is quite simple. You need to buy from what are known as motivated sellers. People who need to sell more than you need to buy.
Who are these motivated sellers? (Unfortunately it’s all about buying from people who have particular problems. If you don’t like the idea of this, then BMV property is not for you, and that’s fair enough.)
Here are some examples of motivated sellers:
Sellers who have money problems
Sellers who have personal problems, e.g. going through a divorce
Sellers who need to move house urgently, e.g. for work
Sellers who have inherited a property they don’t want from a deceased relative e.g. probate property.
Once you have identified motivated sellers the next step is to find properties that are available. Here are some ways of doing it:
Contact local estate agents. Tell them that you are willing to buy a property from sellers who wish to sell urgently… as long as they’ll give you a good discount on market value.
Direct from seller. Advertise ‘Property Wanted’. Place ads. in your local press stating that you wish to buy property. When sellers contact you as a result you know that they positively want to sell their property.
And this is the very best and easiest source of BMV property – Auctions. All kinds of forced sales, repossessions and unwanted investment properties are turning up at the property auctions right now.
Tip. There’s no need to go to an auction and actually bid. BMV buyers in the know do it this way instead:
Identify auction properties you are interested in and make a low bid either before the auction or, if the property does not sell, after the auction. See below for auctioneers handling BMV property which I suggest.
Here are a few examples of the crazy BMV deals I’ve seen going through the auctions. (These prices are NOT misprints by the way):
- Three bed detached house, Omagh, £42,500
- One bed flat Glasgow G21, £19,100
- Lock up garage investment, Leeds £1,500
- Town house, London E7, £38,500
- Two bed apartment, Nottingham £12,750
- Two bed terrace, Manchester M28, £26,600
- Luxury seaside apartment Kent, CT7, £40,000.
Tip. To benefit fully from BMV property, it is preferable to have the finance for your purchase lined up before you make an offer to buy. (Remember it’s trickier to get a loan or mortgage right now, which is partly why prices are in the doldrums, but then you need to borrow less in the first place anyway.)
No one knows what’s going to happen in the property market in the future of course so there’s always an element of risk. But I’d be amazed that in the long term you couldn’t save or make tens of thousands of pounds by buying BMV at the moment.
Useful contacts
These are a couple of sources for BMV property I suggest:
Auction House. A network of 24 regional auction houses. Website: www.auctionhouse.uk.net
Must Be Sold. You can even bid online with this one. So just make a crazy low bid and try your luck! Website: www.mustbesold.com