Some of the biggest financial challenges investors face
We are in an unprecedented era of financial uncertainty and fear.
1. Many investors who got mortgages for fun pre 2008 can't even get a credit card now.
2. People who relied on bank interest and stock market income have had their passive income totally wiped out.
3. Knowledge is being transferred so fast now, what consultants used to charge thousands for gets put on the net in an 'e-book' for free.
4. All of a sudden everyone's an 'expert' and no-one knows who to actually trust in the property sector.
It's a real life catch 22, because people with money are desperate for help. They need guidance. They need advice. They desperately need to invest for fear of their capital getting eroded by high inflation.
PropertyPortal.com can help guide property investors*
Who:
- HNWI
- Private Individuals
- Corporations
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What:
- Buying Agent
- Rental Agent
- Residential
- Commercial
- Agricultural
- BMV
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Where:
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*We can offer members (and non-members) discounted investment opportunities on new build, off-plan, distress sale and other properties. We or our partners may charge a membership fee and/or sourcing fee and/or finder's fees as well as reservation fees for these properties.
What is BMV Property?
BMV simply means Below Market Value.
The term refers to buying property for less than it is worth. This normally illicits two responses in investors:
- This is an excellent idea. How do I identify the best techniques to buy BMV?
- Why would anyone would sell a property for less than it is worth?
Both viewpoints have merit.
What do people normally do with BMV acquisitions?
- rent it out
- rent it back to the seller (sometimes known as sale and leaseback)
- flip it (re-selling the property quickly for profit).
- repackage the property as part of deposit paid / no money down deal.
Beware of Common Mistakes
- Do not confuse a discount from ASKING PRICE with a discount from true MARKET VALUE.
- Do not confuse ASKING price with MARKET price. Getting a discount on ASKING price is NOT the same as buying BMV.
- Do not confuse a POOR CONDITION DISCOUNT with BMV. A property in poor condition has a lower MARKET VALUE, reflecting the fact that whoever buys it will need to spend time and money resolving these problems.
- It can be very difficult to tell PRECISELY what the market value of a property is at the time you are making an offer.
Does true BMV exist?
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It all depends on the sellers motivation.
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BMV has nothing to do with the property, and everything to do with the vendor.
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An investment purchaser offers the vendor three things
The trick to buying BMV is identifying these vendors.
There are all kinds of techniques for trying to discover this, from simply asking, through leaflet drops, through simply making very low offers, and seeing whether there is any interest.
Questions the investor should ask
Why does the seller need to sell below market value - if there are un researched problems, they buyer will surely inherit them.
Why would a vendor sell at BMV?
- Imminent Repossession - there is a business and logical motive.
Sellers in this situation are facing:
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losing their home
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gaining bad credit
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no chance of another mortgage at favourable rates.
This is where PropertyPortal.com can assist, providing investors willing to purchase quickly with data on homeowners facing this difficult situation.
In turn, we seek to create a win-win situation where all parties can benefit from a fair and ethical transaction.
If I am faced with having to sell at BMV, what are my options?
If a repossession is involved, speedy access to cash is required from non- mainstream funding routes.
- Bridging finance can offer interim financing for an individual or business until permanent financing can be obtained.
- Money from the new financing (i.e. either the sale of the property or a remortgage) is generally used to "take out" (i.e. to pay back) the bridge loan, which is often supplied at a relatively high interest rate. This effectively allows anyone to purchase a property, regardless of their situation or its price, providing there is sufficient value in the property being purchased.
What if Bridging Finance is unacceptable and I have to market my property at BMV?
PropertyPortalAuctions can assist, as sale by auction is often preferred for raising interest in BMV property.
Contact Us
Do you fall into any of these categories?
- Interested in some of the best off-plan property investments in the UK?
- UK or International Investor?
- Interested in Buy-To-Let but unsure or afraid?
- Want to know more about BMV (Below Market Value - see 'BMV' tab)?
Have a free consultation where we guarantee:
If you decide to proceed, our experts will
- Teach you how to build your investment portfolio using tried and trusted techniques.
- Source the property for you.
- Buy discounted property on your behalf whilst guiding and explaining the whole process from start to finish.
- Secure real value discounts based on genuine valuations, not on figures that are made up from someone's imagination.
- Arrange your survey and discuss it with you afterwards.
- Help you to arrange your finance.
- Help you to arrange your lawyer.
- Rent property out for you time and time again hassle free
- Arrange tax advice and teach you how to add to your portfolio.
To learn more, fill in your contact details and we will call you back.
CWBGC are delighted to contribute Property Derivative market information to Propertyportal.com helping Residential and Commercial property investors manage their portfolios more efficently.
Following structural changes in both the tax treatment and FSA legislation in relation to Property Derivatives, Cushman & Wakefield and BGC Partners signed a JV, known as CWBGC, in June 2006 with the sole purpose of focusing on the Property Derivative Market, offering education, market research, pricing and trade execution services to our customers.
Cushman & Wakefield is a leading global real estate broker offering a full array of property related services in all major business centres of the world.
BGC Partners is one of the world's leading inter dealer brokers providing integrated voice and electronic services to the wholesale financial markets globally.
We believe that with a blend of our combined experience and specialist knowledge we are well placed to provide customers with an in depth and expert assessment of the market.
I would actively encourage anyone in the Property investment world to take a look at this market and learn how you can possibly use derivatives as part of your investment tool kit to boost your returns as well as manage your risk.
We have provided a link to a presentation on Property Derivatives on the next tab as well as other downloadable content that we hope you will find of interest. If you have any enquiries please complete the online contact form below.
Jon Masters (Partner)
Property Derivatives
For more facts and figures and to contact Jon, click here.
PropertyPortal.com Limited and its partners provide a service that introduces third parties to facilitate the acquisition of properties. We have made enquiries and investigations into those third parties introduced by us to our clients with a view to confirming their suitability. However, as introducers only, we cannot be held responsible under any circumstances for any act or default of such parties and any introduction of a client is on this basis.
No guarantee can be made regarding the performance of such investments as by the very nature of property investment their value can go down as well as up.