How to find BMV deals
Despite what you may have heard BMV (below market value) deals do still exist!
If you’re navigating the current UK property market, you may have heard claims that BMV (Below Market Value) deals are a relic of the past. However, I’m here to tell you that these opportunities are still very much alive, and savvy investors can uncover significant advantages if they know where to look.
What Are BMV Deals?
At its core, BMV deals refer to properties sold for less than their current market value. This creates a fantastic opportunity for investors to purchase real estate at an attractive price point, allowing for potential profit through renovation or resale. In the UK, BMV deals can come in various forms, including:
Distressed Properties: Homes that need substantial renovations often sell below market value. Investors with a vision can transform these properties into profitable investments.
Motivated Sellers: Homeowners experiencing personal challenges, such as divorce or financial distress, may need to sell quickly and are often willing to accept lower offers.
Repossessions and Corporate Sales: These properties are typically sold by lenders or financial institutions. While they might not be obvious at first glance, knowing what to look for can help you identify these hidden gems.
Spotting Repossessions
Identifying repossessions, often referred to as corporate sales in the UK, can sometimes be tricky. Here are some signs to look for during property viewings:
Check Sheets: Look for a check sheet or sign-in sheet in the kitchen area during viewings. This often indicates that the property is part of a corporate sale, hinting at a BMV opportunity.
'Do Not Use' Tape: If you see 'do not use' tape in photos or notice it during the viewing, this can be a signal that the property is being managed as a repossession. Recognising these signs can position you to negotiate a better price.
Caution with Auction Properties
While auction properties can sometimes present BMV opportunities, it’s crucial to approach them with caution. Especially, the Modern Method of Auction can be misleading. The hidden fees associated with auction purchases can be extortionate, quickly diminishing any perceived savings.
From my experience, dealing with auction centres can be an endless hassle. The persistent phone calls from auction houses can be overwhelming and detract from the excitement of finding a new investment property. It’s essential to weigh these factors carefully before diving into the auction route.
Why BMV Deals Are Still Relevant in 2024
Dynamic Market Conditions: The UK property market is continuously changing. Economic fluctuations and shifting buyer demands create unique opportunities for investors willing to act.
Investor Strategies: Many investors actively hunt for BMV deals, utilising strategies ranging from networking with local estate agents to attending property auctions.
Networking: Building strong relationships with property professionals can give you insights into off-market deals. Collaborating with estate agents and fellow investors can provide valuable leads and information.
Innovative Financing Options: Explore creative financing methods that enable you to purchase properties below market value without significant upfront capital, such as lease options or joint ventures.
Important Considerations When Offering
If you identify a potential BMV deal, ensure you have your documentation ready. You'll need to gather all the necessary paperwork for anti-money laundering checks, including:
Proof of Funds: This shows you have the financial backing to proceed with the purchase.
Proof of Address: Utility bills or bank statements can serve this purpose.
Driving Licence or Passport: A form of identification is essential to verify your identity.
How to Find BMV Deals
If you’re eager to explore BMV deals, consider these actionable steps:
Research Local Markets: Familiarise yourself with local property prices, neighbourhood trends, and types of properties available. This knowledge will help you identify genuine BMV opportunities.
Build Relationships: Establish connections with real estate agents, property wholesalers, and other investors. Networking is key to uncovering exclusive opportunities.
Be Ready to Act Quickly: BMV deals can attract multiple offers, so having your finances pre-approved is crucial. Be prepared to make competitive offers swiftly.
Conduct Thorough Due Diligence: Always assess potential properties carefully. Evaluate repair costs, market potential, and any other factors that could influence your investment strategy.
Final Thoughts
In the ever-changing UK property market of 2024, BMV deals remain a valuable avenue for discerning investors. By employing strategic approaches, cultivating strong networks, and conducting thorough research, you can uncover opportunities that others may overlook.
As you navigate this journey, do read Who Moved My Cheese? by Spencer Johnson. It offers valuable insights into adapting to change—something that’s crucial in today’s dynamic market!
So, don’t let the sceptics deter you; there’s a world of BMV deals waiting to be explored. With the right strategy and a proactive mindset, you can secure your next investment success! Get out there, stay observant, and start your journey toward finding your next BMV deal today!