Category — BMV Investing
This is taken from the new updated 4th edition of my, No 1 Amazon best seller “Property Magic”
You would think that estate agents would be an excellent source of motivated sellers. After all, the estate agents will know when a sale has fallen through, or if the seller needs to sell in a particular hurry.
As an investor, one of your goals should be to get on your local Estate Agent’s shortlist so that you are one of the people they call whenever they get a good deal. [Read more →]
July 11, 2012 1 Comment
A question I am frequently asked is How to find repossessed property? This is because, most property investors know that if a property is repossessed, the property is usually put on the market for sale, for less than it is worth (below market value). Understandably, investors who are looking to pick up great property investments at a discount, look to buy repossessed properties from [Read more →]
August 29, 2011 8 Comments
It is such a shame that many people give up, often just before they get the success they desire. Unfortunately, we live in a microwave society where most people seem to crave instant gratification. I have seen this so many times. I meet investors who say they tired a particular strategy and it did not work for them. On further discussion, I usually find out that what actually happened was [Read more →]
April 14, 2011 6 Comments
This is a question that I am frequently being asked as more and more people seem to be having problems when buying packaged deals. The answer is, as my friend and mentor, Dolf de Roos, would say…It depends! In this blog I would like to share my views on how to minimise the risks of buying deals from other investors! [Read more →]
January 25, 2011 3 Comments
I still can’t believe it. I have been dealing with a motivated seller in London who is being repossessed on the advice of a lawyer acting for one of the family members and even worse this decision has been backed up by a Judge. [Read more →]
May 6, 2010 6 Comments
As I am sure you know there has been a bit of a stir created by my Death of Property Investing Report which I put out onto the internet last month. As a result of the tremendous feedback I received from that I have recorder a video about how to finance your purchases in the current climate. Rather than No Money Down (NMD), I prefer to use No Money Left In (NMLI). All is explaining on this video. Click here:
August 23, 2008 3 Comments
As UK property prices continue to fall due to lack of buyers, for the first time in many years, estate agents are facing the danger of redundancy. This means that estate agents need us in order to stay in business and employment. [Read more →]
June 14, 2008 3 Comments
I am consistently amazed by the number of so called professionals in our industry who don’t know what they are doing. Last weekend I was speaking at the Homebuyer Show at ExCel in London, where I was asked to share my views on the topic of ethics in relation to buying property below market value from motivated sellers. At the end of my presentation I opened up the floor to questions and I was asked “What would happen now that Mortgage Express had pulled their same day re-mortgages?” [Read more →]
March 11, 2008 6 Comments
On Thursday morning I received a call form a panicked lady who was getting repossessed (evicted) at 10.30am the next day! When she told me her name I thought that sounds familiar and I realised that I had left several messages for her before Christmas. It was a lead that I had purchased form another investor, but I thought it had dried up. She apologised for not coming back to me sooner but she admitted that she had just buried her head in the sand in denial about what was happening. This is often the case for people in this kind of situation.
Anyway to cut a long story short, with the help of one of the solicitors in my power team, we managed to stop her getting evicted by [Read more →]
January 26, 2008 1 Comment
Over the past few weeks there has been significant media interest in the practise of buying property below market value from motivated sellers and allowing them to rent back for long term.
The coverage has on national TV has been varied. “The Money Programme” which featured Glen Armstrong of Repossession Angels, showed the positive side of the business where people are saved from repossession, allowed to rent back at a fair market rent and even have an option to buy back in the future.
In contrast, “Tonight” with Trevor McDonald had a more negative spin about people who sell their homes to BMV companies with the impression that the will be able to rent back, only to be kicked out of the property 12 months later. This is of course totally unethical. I have no doubt that there are some unscrupulous companies out there who are deliberately taking advantage of people.
There are also an increasing number of amateurs investors out there who are attracted to the concept of being able to buy property with no money down but who have no clue about what they are doing and how to handle motivated sellers. The danger being that they don’t know what they are doing and may make promises that they just can’t keep.
So what does this mean for you? Should you be looking to adopt this strategy? My advice is only if you do it ethically. Anyone who has seen me speak about buying property below market value will know that I always talk about ethics and how you can make it a WIN WIN deal for all involved.
There is no doubt that if someone is about to get repossessed and experience all that is associated with it, then it has to be better to sell their home to an investor who will pay off their debts and give them a fresh start and an opportunity to minimise the disruption to their life by renting the house back.
It must be in your interest to keep the motivated seller as a long term tenant. Yes it may be possible for you to get more rent but it if you increase the rent and kick out the vendor of the property you may well have a void period whilst you find a new tenant. This may cost you more in lost rent than you gain from the rental increase.
The other benefit of allowing the tenant to stay long term is that often they will treat the house as their own home and continue to make improvements to your investment. That has to be a goof thing. So by being ethical both the seller and purchaser get a good deal.
To learn how to buy property below market value ethically you may want to consider my property mastermind programme. The next one is full but we are taking names on the waiting list. For full details and to express your interest click here.
October 16, 2007 No Comments