Is a BMV (Below Market Value) Buy to Let Property Deal Always a Good Deal?

When is a BMV deal not a great deal?

Surely, if we can get a property at 15% or 20% or 25% or more below the TRUE market value, it's got to be a great deal, hasn't it?

After all, isn't the profit made on the purchase and all that?

Sadly, it's not as simple as that.

New investors especially, but also more experienced investors as well, can get so over excited about the deal that they forget the basics.

Does anyone actually want to rent this property from you, at least at a rent that makes sense?

If not, then no matter how BMV it is, it'll cost you money.

And that's not what we are after.

I've seen developments where eager buy to let investors have bought en masse at an apparent discount to the 'true' market value, only to find there were no tenants, or at least no tenants who were prepared to pay a rent high enough to cover costs, like the mortgage.

Many of these properties remained empty until they were inevitably sold, often at a loss, by the disappointed investors.

Cash flow first, everything else afterwards.

Not a Rule as such, but a useful guideline.

Which can be broken, of course, but only when you know what you are doing and doing and why you are breaking it.

Anyway, I tell you all about it in the video, so please take a look, it's only a little over 4 mins.

Here's to Successful Property investing.

Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
http://www.ThePropertyTeacher.co.uk

PS. By the way, I've rewritten and updated my best-selling e-book, The Successful Property Investor's Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.

For more details please go to:

http://www.ThePropertyTeacher.co.uk/t...