Before we get started it is important to Understand the term Below Market Value (BMV).

If you are new to Property you prob not heard of this term before. It was only when I started going to Networking events and Property Education Courses, where I came in contact with this phrase.

If I'm honest with you, it did make me wonder what is this BMV everyone keeps mentioning. 

So thought It would be a good idea to do a blog post on what this is and how you can find these kinds of properties.

Below Market Value (BMV) deal is where you secure a deal to purchase a property for less than it's worth, giving you profit when you sell it.

- Usually 10% to 30% less: 

- An estate agent will give a market appraisal e.g. £110,000 

- A buyer may offer £99,000

- A lender may value the property for mortgage purposes £97,000

- A surveyor may value the property in its current condition £95,000 

The question to ask is: which price should the property be classed as ‘below’? 

- Answer: the ‘below market value’ price is LESS than a buyer would pay 

- In our example, 10% ‘below market value’ would be £96,000 – 10% = £86,400

Hope this make sense to you, as I find not enough people do explain this properly, as there are also fees involved with solicitors, agents etc. And you need to account for all this to analyse if what you have in front of you is a deal or not!

ONE Very important Point - For the person to sell the house below market value he/she must have equity in their house

I'm going to keep this section short and sweet, as I think once you see the list below you will understand straight away as to why people would sell their house. 

With the economic climate there are a lot of people who need help in selling houses, as some of them don't trust agents or might have another reason.

These are the most common reasons:

- Debt

- Divorce

- Moving Away

 -Broken Chain (i.e - person not buying their house and causing them to pay 2 mortgages)

- Death

- Repossession

There are a lot more reasons for someone to sell, if you are interested to know what they are, then join me on my FREE training where I will be going through this concept and explain everything.

Where Do you Find BMV Deals?

There are many ways you can find BMV Properties. With the internet these days having so much a reach you can actually use very clever ways to find these deals.

BUT don't be fooled.......It isn’t easy - you often need to research over 150 properties

- Financially review 50 properties 

- Visit 20 properties which achieve your objectives 

- Narrow down to 10 properties which are worth considering

- Offer on one to two properties where the seller is able to sell at a discount 

- Estate agents - Sometimes they have a desperate seller who will offer a discount based on a quick sale

- Letting agents - May have desperate landlords who need to sell because of financial difficulties

- Auction houses

- Check the property thoroughly via a surveyor and solicitor before you make any offers 

- Notes through doors - Do this sensitively – often people in financial difficulty don’t want to sell on the open market - A polite note saying you’re interested in buying their property may result in a quick deal

As you can see that there is a fair bit to know when trying to get BMV deals, but when you do get them you can make a LOT of money.

This is not the case at all, as a property investor you are actually helping people, they are in need for someone to buy the house of them and relieve them from the pain they are having.

Yes I will make some profit, But my main objective is to help them first and point them in the right direction.

Money is the last thing on their mind, as they are in need of help to move on; which is the service I am providing them.

I hope this information above has helped you to understand what BMV is and how you can help people once you know how to do it properly.

Negotiating and Sourcing is a very important factor every Investor needs to know. It truly can make or break your deals.

If you would like to learn more, I'm holding a FREE Online Training to show you how you can do it.

Just Fill in your details below and register, there are very limited spaces on this training so don't miss out, as I will not be recording this.