One of the most popular strategies for property investors when buying, is to buy below market value (BMV) or find properties to which they can quickly add value to before renting the properties out. This allows investors to do 2 things. Firstly it allows you to be protected against any fluctuating property prices and prevent the dreaded negative equity. Or secondly you could re-mortgage further down the line and take money out to reinvest or buy a new car etc. So what if I said I have a FREE resource for everyone to use to actively find them these great deals?
There are a number of reasons why someone would want to sell their property Below Market Value. Maybe they are going through a divorce or the seller has debt issues or even bereavement. We call these people ‘distressed sellers’ and one thing most of them have in common is they want to move quickly. There are of course other reasons for selling BMV such as selling an un-mortgageable property etc. and you would need to approach these differently as the motivation is different (e.g. they do not necessarily need to sell fast and price may be more of a consideration).
Below Market Value has become quite a catchphrase over the last few years – one used by a number of individuals and companies to attract investors to buy through them. These sourcers charge a property finding fee which can be around 2% of the purchase price.
Now there are a number of highly experienced and reputable property sourcers out there who can find some great deals for you. One word of caution however is to do thorough due diligence and make sure if someone is telling you they have found a property 30% below market value – is it really below market value or have they just dropped from an overly expensive price to what is now actual market value?
So what if I said the best resource for finding great property deals is FREE…and…is really under-utilised by most investors?
I was talking to one of my new clients just after the New Year. We were talking about new year’s resolutions – and he had a great one. He told me that with the issues landlords are facing in terms of tax changes etc. there is a great opportunity to build his rental portfolio this year. However he had one big problem – where to find the good deals.
I told him he was mad – there are some fantastic deals out there to be had from some landlords looking to sell fast – to some really good value older properties in need of some renovation. It was easy for me to say that – I work full time in the industry as an investor and agent so I see the whole market not just what goes on Rightmove.
And there we have it – the number 1 FREE resource all property investors should be using to find great deals in their area.
Getting to know your local agents and forming a relationship with them puts you well ahead of everyone else. Where else could you go where someone’s sole job is to find you a property and sell it to you – for free. The key thing to understand here is that the really good deals don’t make it online.
For example if I had a client who is motivated to sell their property quickly and would take a lower offer – the first thing I would do before writing up catchy descriptions and taking professional photographs is to call my motivated buyers who can move quick for the right deal. I don’t ever list land online because we have relationships with local developers who buy before there is a need to market it.
So why not introduce yourself to a few local agents and let them know what you are looking for and form a two way relationship with regular contact. You may find yourself getting more great deals than you can keep up with.
If you would like some advice on finding great deals in the Bournemouth area, or if you have found one that you would like a second opinion on – please drop me an email or give me a call.
All the best
Luke Marchbanks
Below Market Value has become quite a catchphrase over the last few years – one used by a number of individuals and companies to attract investors to buy through them. These sourcers charge a property finding fee which can be around 2% of the purchase price.
Now there are a number of highly experienced and reputable property sourcers out there who can find some great deals for you. One word of caution however is to do thorough due diligence and make sure if someone is telling you they have found a property 30% below market value – is it really below market value or have they just dropped from an overly expensive price to what is now actual market value?
So what if I said the best resource for finding great property deals is FREE…and…is really under-utilised by most investors?
I was talking to one of my new clients just after the New Year. We were talking about new year’s resolutions – and he had a great one. He told me that with the issues landlords are facing in terms of tax changes etc. there is a great opportunity to build his rental portfolio this year. However he had one big problem – where to find the good deals.
I told him he was mad – there are some fantastic deals out there to be had from some landlords looking to sell fast – to some really good value older properties in need of some renovation. It was easy for me to say that – I work full time in the industry as an investor and agent so I see the whole market not just what goes on Rightmove.
And there we have it – the number 1 FREE resource all property investors should be using to find great deals in their area.
Getting to know your local agents and forming a relationship with them puts you well ahead of everyone else. Where else could you go where someone’s sole job is to find you a property and sell it to you – for free. The key thing to understand here is that the really good deals don’t make it online.
For example if I had a client who is motivated to sell their property quickly and would take a lower offer – the first thing I would do before writing up catchy descriptions and taking professional photographs is to call my motivated buyers who can move quick for the right deal. I don’t ever list land online because we have relationships with local developers who buy before there is a need to market it.
So why not introduce yourself to a few local agents and let them know what you are looking for and form a two way relationship with regular contact. You may find yourself getting more great deals than you can keep up with.
If you would like some advice on finding great deals in the Bournemouth area, or if you have found one that you would like a second opinion on – please drop me an email or give me a call.
All the best
Luke Marchbanks
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