What is BMV Real Estate Investing?

Last post, I mentioned something that Maverick Investors do in the property / real estate market - something known here as buying BMV, or Below Market Value. There is a relatively small, specialist group of property investors in the UK who specialise in finding, investing in, and passing on BMV property deals.

Why?

Because the profit in any property deal is not, as you may think, in the sale of the property. It's in the purchase. And because most of us enjoy helping people to move on in life, and making a good living in the process.

Listen - you can go into any real estate agent today and pick up a property at market value. You can then let it out and, since the UK property market has averaged 8-10% growth per year for the past half-century or so, you can just watch and wait while it grows in value over time. And there's nothing wrong with that - it's just a bit slow, plus, you're potentially exposed to any correction in the market.

What we do instead, as Maverick Investors, is buy properties at 10%, 15%, 20% or even more below market value. This has a number of advantages...

1. We immediately have equity in the property, without having to wait.
2. If we can find a property at 15% BMV, and we buy it using a particular technique, then we need no deposit!
3. If we can find a property at 18% BMV, then we need no deposit and our costs are covered, too! It's a true No Money Down deal!
4. If we can find a property at greater than 18% BMV, we not only need no deposit and our costs are covered, but we also get cash out on completion! How cool is that?
   
5. Finally, we have a nice equity cushion in case the market does drop at all.

Now you're all wondering who on Earth sells property at less than the market value, and why. Well, in order to get some answers to that very question, you can download my free e-book, "How to Buy Half-Price Houses", from The Property Man. Before you do, though, a quick warning. It's an excellent book, currently in its second version, but one section has just gone seriously out of date! So, when you read it, ignore everything in there about reversionary properties. The FSA have just stomped all over these deals, and they are no longer available. I'll be updating the book in the next week or so, and I'll let you know when Version 3 is available.

If you're wondering how to get in on some of these deals, you can subscribe to the twice-monthly Property Bargains Bulletin from the same site - The Property Man. It'll cost you less than a pub lunch a month; you'll get access to 16-24 red-hot deals every month; and you are free to cancel at any time. We've been in operation for nearly three years, and the Bulletin is the only specialist BMV publication of it's kind.

If you want to know more about the exact techniques we use to find BMV properties, to buy them with no money down, to get cash out on completion, and then to use that cash to do it all again, then I'm running a seminar in March in Central London, and I would highly recommend you get yourself along to it. Check out www.ultimate-property-investment.com for full details.

I personally aimed to complete a property deal a month this year. I'm currently running a deal behind and, in a post or two's time, I'll take you through one or two of my recent deals to show you where they came from, how I structured them, where the profit is and where the cashflow is coming from.

Until then, happy investing!

Rob
www.maverick-investor.com