7 Proven Ways To Find Below Market Value Properties Before They're Gone

Finding Below Market Value Properties With Pearl Lemon Properties

Statistics show that 69% of buyers don’t want to purchase a property in foreclosure.

But what if we tell you that those properties are actually what you need to invest in?

Here at Pearl Lemon Properties, we help you find the right property that suits your needs while at the parameters of your budget.

One of the properties we specialise in is BMV.

If you’re interested in knowing more about it, book a call now.

Explaining BMV

When we say BMV, this pertains to properties that have Below Market Value. These assets are domestic properties for sale at a price less than their actual market value.

This is frequently because the proprietors of such estate need to sell their property swiftly.

Most sellers will sell their ownership for less than market value because they are experiencing financial difficulties or are facing foreclosure.

Due to separation or migration, some individuals sell their property for less than market value.

Selling a home for less than its market worth allows the owner to get rid of their property fast without passing through a difficult and time-consuming procedure.

Advantages of Buying BMV

There are numerous guiding principles to consider when contemplating purchasing business assets for productive investments. One of these is to keep an eye out for houses priced at BMV.

The following are the primary advantages of investing in BMV properties:

Potential Growth

If you can obtain business assets at a reasonable price, you have a greater chance of earning a profit owing to the savings from the reduced purchase price. Investing in a BMV property provides you with instant paper gains. If you sell your home at market value after it has been appreciated, you will have an excellent investment return.

Mitigate Risk

The real estate market is often volatile. Purchasing a home at BMV protects against a reduction in valuation throughout a recession in the real estate market. However, if you paid the total market price at the time of your purchase and sold during a recession when values are lower, you would incur a loss. As a result, BMV properties provide superior protection against market downturns.

Limited Requirements

Purchasing real estate at a cheaper cost results in a smaller line of credit. Furthermore, your loan must be repaid with interest. In the long term, a cheaper loan means reduced interest payments. In general, BMV properties assist in reducing the cost of funding your property.

Better Cash Flow

While expenditures like utilities and estate service charges remain constant, the savings from lower debt payments and related financing costs result in more cash flow and, as a result, a high rent return on your investment. The increased investment cash flow allows you to handle unforeseen circumstances such as more significant maintenance expenditures or changing your asking price during cyclical downturns.

However, we would also like to remind everyone that while BMV property investments have many advantages, they are challenging and require much investigation.

To maximise your return on the investment, you’ll need to conduct rigorous due research.

But you won’t have to do that if you partner with us to choose the best BMV properties.

Ways To Find BMVs

So, where do we look for BMVs in the market?

Well, you can find them in the following places:

Online Real Estate Auctions

Since you wouldn’t have to view the property in person, internet auctions help identify below-market assets, and many auction site companies offer you 30 days to close. This allows you time to get finance or retail the transaction to your eventual buyer. Because these events are online, you can acquire properties across the country without departing your house. It can also be a great way to practice for future transactions. For example, you may watch the auction and assume you’re buying real estate to determine whether you would have succeeded if you had bid. You may also take virtual tours of houses and rehearse calculating repairs; remember to include your repair estimate when making a genuine offer.

Real Estate Websites

Search filters on digital big real estate sites allow users to set email notifications for the defined criteria wanted, including assets labelled “For Sale By Owner.” These types of sellers are much more receptive and responsive to innovative seller financing than real estate agents. When you directly engage with a seller, you may discuss their alternatives with them and assist them in making a faster sale (and often a better price) by being open with the parameters of your offer. Real estate brokers cannot always provide the same level of flexibility since they frequently need to sell the property for money or to a bidder with funding. As the investor, negotiating arrangements with the seller allows you to purchase the estate with little or no money down, eliminating the need for you to loan costly, private funds. This can increase your capacity to invest in more properties with less risk.

Advertising Websites

Sites that promote various products for sale, especially properties, are also excellent places to look for low-cost real estate. Searching for commercial real estate bargains on sites may lead you to a real estate seller who may provide you with alternative investments to purchase and hold or co-wholesale, as well as the possibility of performing virtual wholesale.

Social Media Platforms

Facebook allows you to utilise free social networking tactics or paid advertisements to locate bargains from motivated vendors. Since the introduction of social media, chances to connect with investors worldwide for joint ventures or virtual wholesaling have arisen. It’s far more productive than in-person networking at local real estate investment groups. Try joining a few social media domestic real estate investment groups to meet other investors. It may be reasonably straightforward, and participants in these forums are often eager to hear from other investors with whom they might purchase or trade.

Direct E-mails/Mail

Direct mail has long been used to discover great deals. This is a more complicated method, but direct mail is for you if you have a voracious taste for offers. A good strategy is multistep mailings that focus on targeted databases, such as houses listed as empty, behind on payments, financially troubled, infractions, bankruptcy or available properties, which are the most effective approach to achieve accomplishment with direct mail.

Convinced Yet?

In its most basic form, BMV stands for Below Market Value property.

It indicates that prospective purchasers pay less than the property’s projected market value.

A BMV sale can stop a foreclosure order and, perhaps more critically in today’s credit climate, prevent the seller from earning a poor credit rating.

So if you’re looking for your subsequent property acquisition– try finding BMVs with PL Properties.

Talk to us today.

Talk with experts

Don’t worry if you only have a few minutes to talk to us in the middle of the night; we’re available 24 hours a day, 7 days a week.

We’re here for you at all times, ready to answer any queries you may have.

So why not book a call with us today?

FAQs

What are below-market value properties (BMV)?

A property sold for less than its market value is known as a below-market value (BMV) property. This may occur for several reasons, such as the seller’s wish to sell quickly or the need for maintenance on the property.

What advantages come with purchasing a BMV property?

The possibility for short equity, which implies that the property can be sold for a profit or used to produce rental income, is the principal advantage of purchasing a BMV property. BMV houses can also make a fantastic investment for people wishing to remodel a home and then sell it or rent it out.

How do I locate BMV properties?

Finding BMV properties can be done in several methods, including browsing online real estate listings, going to property auctions, and networking with other real estate investors and experts. Investors can also find BMV properties through MLS listings, real estate ads, and direct mail advertising.