Finding BMV (below market value) properties is the way that much of the wealth that is being created in today’s property market is being made possible.
In this article we will discuss one tip for finding BMV properties. This one tip alone can help take your property empire from being mediocre or non existent to bulging at the seams.
Over the past decade or so, there have been numerous T.V. shows about making money from property. Many have been focused on things like buying property at Auction. Because of this, at auctions in particular, we are now in a situation where property auctions have ceased to be the bargain place for finding BMV properties that they used to be back in the 1980s and 1990s.
These days you have to be able to attract below market value properties in as many different ways as possible. This article is focused on you learning how to become a “Chain Angel” and using what you learn to reap big profits, time and time again.
What is a property “Chain Angel?”
The term “Chain Angel” basically means someone who steps in and rescues broken property chains.
What is a broken property chain?
Generally speaking, a broken property chain is simply when you have a chain of buyers and sellers who are all dependent on someone else in the chain in someway. This can mean that they need to be able to sell their property in order to buy the one they want, but the person buying needs to sell theirs to buy it. A property chain can consist of just a few people, or it can be many more.
If just one person in the chain’s house sale falls through, for whatever reason, then the whole chain can fall apart. This is what is known as a broken chain. And this is when the property investor/chain angel can come in and fix things by being able to buy the property whose sale has just fallen through.
In this situation the person who owns the property whose sale has just fallen through is in a panic because they could have wasted months with a potential buyer who has pulled out at the last minute, and if they don’t get a sale soon they could be in a situation where the property they put on offer in on and perhaps even got to exchange on, is going to be put back on the market.
People in this situation need investors who can come in and buy the property quickly. They can’t afford to wait and advertise the property again and have someone else put in an offer a few weeks down the line and be waiting around three months for a sale. They have to move now; otherwise they will miss out on the purchase of their dream property.
This is why the service of a property investor in this situation is vital to keep the chain running smoothly. Now you as the investor will obviously only be buying the property if it is below market value. Even though the seller will potentially be selling the property to you at substantially less than they had agreed with the last potential buyer, they can still see this as a great option. It allows them to still buy the property they want without having to apply for expensive bridging loans or other expensive options that might take a while to sort out and might mean they still will have to try and sell their current property anyway.
In this situation the investor is a simple, no hassle solution that means they can move on with their lives and cut all ties with their old property, quickly and easily.
If you want to be a successful “Chain Angel” one of the best things to do is to have great working relationships with as many estate agents as possible and to become well known in the area you are targeting. That way, when a chain breaks down (which can be quite frequently) estate agents and others will be straight on the phone to you to fix the chain, this way they don’t lose out on their commission and the property in question can still be sold in the required time frame.
This can be a great way to find BMV properties. Some investors don’t bother with things like auctions or ads in newspapers; instead they concentrate on building a good reputation and a solid set of working relationships in the community they are targeting.
Article Source: http://EzineArticles.com/1091018