3 Things You Want to Establish Before Investing in Below Market Value Properties

Below market value properties can be rewarding investments for any investor, especially during these times when many owners are willing to sell their properties cheaply in order to get cash fast. To reduce the risks associated with your investment, establish 3 things before investing in a BMV property.

 1) The Motivation of the Seller Assessing the seller is motivation can give you an idea about why the seller is so keen on getting rid of their property at a value below the market one. Sometimes the seller desperately needs cash, but at other times there is an inherent flaw in the property which makes it unprofitable for any serious investment. Decide whether the seller is truly motivated to sell a BMV property, and if so, why. You will avoid making any investment error you come to regret latter on

2)  The True Market Price of the Property Before you can be sure you buy below market value properties you need to do your research. You can use the web  and comaprethefinancialmarkets.com to compare the properties on the market, ask real estate agents for insights on previous sales in the vicinity (this might require some persuasion), and attend local auctions. It is wonderful how many useful things you can learn about the local property market by attending auctions. Once you have a figure you can decide what value is truly below the market one. In other words, you will make sure you buy below market value properties, and not just properties who seem to be below market value.

3) The Potential of the Property to Bring You ReturnsThe truth is that not all below market value properties prove to be good investments. Some are in a poor condition, others in a bad location. Before investing your money in the BMV property, invest some time in inspecting the property and then decide whether it truly has potential. Will you be able to sell it or rent it later on?

Finally, remember that when considering investing in a BMV property it is always prudent to compare the market. Do this and your investment will be successful so don't delay visit today and Ask the Experts at comparethefinancialmarkets.com for all your Below Market Value Property Investment opportunities.