The universal investment principle is to always buy low and sell high.
It is worth while to walk the extra mile when sourcing your buy-to-let properties and to ensure you get them BMV as Buy-To-Let property investors rarely sell their properties.
First you need to select your low risk high growth investment area and your investment criteria for example, only buy 30% BMV investment properties.
The only way to find BMV properties is from motivated sellers via networking and marketing.
Networking requires you to build a relationship with professionals who are in regular contact with motivated sellers in your investment area such as divorce attorneys, emigration consultants, debt councilors, auctioneers, bank repossession professionals, specialist estate agents, other investors etc. Make sure the professionals understand your investment criteria and will only refer deals that adhere to your investment criteria. Do not hesitate to pay them a commission for successful referrals to ensure future referrals.
Marketing requires you to set up your unique marketing system in your investment area to source your BMV properties such as flyers, marketing boards, advertisements, direct response letters etc. Make sure all advertising material has your 24 hr contact number.
The best way to find motivated sellers is for them to call you. This will give you a strong psychological advantage when you have to qualify (detailed due diligence) the property in terms of your investment criteria and when you negotiate the price.
Set up a networking and marketing BMV property sourcing system that fits your investment profile and personality.
About the author… Mitch Brandt is a successful buy-to-let property investor and author of the revolutionizing home study CashPlus Property Investment Course “How to buy Cash Positive Properties”.
For more articles on BMV Cash Positive Buy-To-Let Property Investments and to get your first training module of the new revolutionizing CashPlus Property Investment Course for FREE go to http://www.CashPlusPropertyInvestments.co.za
Article Source: http://EzineArticles.com/?expert=Mitch_Brandt
To put it simply, a BMV, or below market value property is a property owned by a distressed seller. A distressed seller is a homeowner who, in support of whatever wisdom, has fallen behind on their mortgage payments and is imminently looking at repossession. Distressed vendors are in addition now and again recognized as motivated sellers since they are usually willing to do whatever it takes to get rid of their property, even if for a loss, in order to dodge repossession by their lenders.
In order for an investor to produce a profit in the BMV industry, two pieces should come together, the original purchase discount and the potential selling price of the property.
The existing economic climate has placed many homeowners inside a distressed circumstances, that has opened up a whole new opportunity in support of investors looking to get on to their mark in the property investment sector, while aiding folks at the same time. The trouble is trying to discover the properties to buy. This is where BMV lead services come into play.
What are the main Reasons to go for Below Market Value Leads?
Investors who are good at in finding high-quality below market value leads are commonly rewarded highly for their hard work. The promising rewards for an investor through some such deal include:
1. Immediate equity in the property purchased
2. Prospects of appreciation of investment – Historically, property prices enlarge by 100% every seven years.
3. Rental returns -is the gain following mortgage payments.
4. Money back on the completion of the deal, if the original purchase discount is satisfactorily large.
How to discover under Market Value (BMV) Leads:
The most crucial aspect of entering the below market value property market is understanding with the intention of it is not so much about the property as it is about the people. A BMV deal is completely dependant on finding distressed people in need of the investor’s services and the investor’s skill at negotiating a high-quality deal for both parties involved.
In essence, the seller has a predicament and you hold the solution, however, more often than not, it is hard to link distressed sellers with investors due, in part, to a great population of scam artists trying to make money from desperate people. As is the case with any deal, you would every time like better to engage in transactions from individuals whom you can trust or individuals you are acquainted with. Therefore, it is very crucial that you, as a BMV property investor, have access to suitable property listings or under market value leads.
In order to obtain distressed sellers, many investors go online and subscribe to a service that provides detailed property listings for distressed properties. Many of these database-type websites will include property listings, products and services providers’ listings and networking capabilities all in an effort to arm BMV investors with sufficient information to make clever decisions on which properties to invest
