What are the best sources to buy BMV? I want to take my portfolio to the next level and maximise on returns.
This is a sensible way to leverage your profits and there are a few simple rules here.
1. Only spend time with sellers that NEED to sell. Everyone on Rightmove wants to sell their property, otherwise why list it. But probably 90% + are happy to let it sit there until they achieve something close to the asking price.
What you need to find are those few sellers with a more urgent need to sell, they can’t wait 6, 9 or 12 months to get a good price. They need to sell quicker and quicker means cheaper - in other words they’re motivated sellers.
These people may have to move for work, to look after elderly parents, finalise a divorce or want to complete probate. They don’t have time to sit around waiting for someone to buy - and then wait for a chain to resolve.
2. Only look at properties in need of some renovation work that will add value in a matter of weeks or months. This is known as forced appreciation.
3. Make friends with your local estate agents. Let them know you don’t need a mortgage (because you’ll be using bridging finance, of course) and there’s no chain involved and ask them to refer motivated sellers to you. It’s a win all round, the seller gets rid of their property, you get a bargain and the agent gets their commission.
In certain cases you can buy a property BMV that needs no work and just put it back on the market to sell at or near its full value and just bank the cash profit from the sale. Banking the cash is never a bad outcome!
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