Phil Richardson
Sep 3, 20201 min
Below Market Value (BMV) in property terminology are residential properties that can be bought for less than their Actual Market Value.
Properties can be bought at Below Market Value for a multitude of reasons, some of which are listed below:
The 4 D's
Death - the owner has passed away and the family is selling
Divorce - the owners have separated
Debt - the owners are in financial difficulty or facing repossession
Disrepair - the property needs significant refurbishment
Some, but not all of the above reasons for a property being sold BMV mean that the owners would also like a quick sale, which is advantageous for negotiations, if you can offer a quick sale without going through a complicated purchase process.
Investing in Below Market Value properties is an excellent way for property investors to maximise Return on Investment (ROI) as they are effectively purchasing a property with equity from day one.
For example, a property worth £100,000 on the open market, bought for £75,000 benefits from £25,000 instant equity if the property is in good condition. If it needs for example a £10,000 refurbishment to bring it up to scratch, then there is still £15,000 of equity in the property after the refurbishment is complete.
Final Thought - If you need any assistance with finding BMV properties, Garner Maven can assist you...
www.garnermaven.com #prosperitythroughproperty #philsays #thedevilisinthedetails #ThursdayThought