BMV Below Market Value

  • Buying property below the perceived market value.
  • Often involves buying property from ‘motivated sellers’ of distressed property in pre-foreclosure status.
  • Home owners about to lose their homes are encouraged to sell to such buyers on the basis they can remain in their own homes as ‘tenants’.
  • Any debt on the home is normally repaid by the investor.  The investor gains the advantage of a reduced price property whilst the seller avoids bankruptcy and having to move.  Allowed to remain in the same home a compromise is achieved.
  • Controversial topic with dome investors selling within a short time of purchase resulting in the home owner now tenant becoming homeless.

What are your thoughts?

Your email address will not be published. Required fields are marked *