| by Kenneth Chase | 14 comments

Below Market Value Property UK | How to Find BMV Deals


Hi. It’s Samuel Leeds here, and in this video,
I’m going to be giving you some absolute golden nuggets to how you can find properties heavily
below market value. You might hear professional investors always
using the term BMV, which stands for Below Market Value. And the very first thing, and
this is really, really important, if you’re looking to buy discounted properties, if you’re
looking to get a really good deal, then what you need to be doing is you need to be finding
motivated sellers and not being a motivated buyer. The very worst thing that you can be
is a motivated buyer, someone who is really desperate, because you’ve just watched Homes
Under the Hammer, and you’re like, “Oh, I really want to buy a house”, and you’ve got
money in the bank and you’re really motivated and you get really excited. Maybe you fall
in love with a property that you see on the market and you think, “Oh my gosh. That’s
so nice. That’d make such a good investment property”, and then you get emotionally attached.
When emotions are high, intelligence is low and when you are a motivated buyer, you are
going to end up paying over the odds, so instead, you need to be a cool, calm and collected
investor, finding and working with motivated sellers. So how do you find motivated sellers? And
why would someone be in a position where they’re prepared to pass you their house, 10, 20,
30% below the true market value? Well, there’s many reasons who these people might be. It
might be that they are maybe going through a problem. They might just be having divorce.
You know, I came across one lady who was selling the house at such a low price, just to spite
her ex-husband, because they own the house together. Now it’s nuts, it’s crazy and we
don’t know what the reasons might be necessarily. People sometimes think, “Oh, you’re taking
advantage of the vulnerable. You’re finding people in desperate situations”. No, not at
all. We’re not putting anyone in any bad situations. What we’re doing is we’re finding them in
a particular situation, and then we’re giving them what they want. It might be that they’ve found their dream
home and they’re about to move to Florida, and in order to get their dream home, they
need to sell their house, and they’re prepared to sell it fast for a discounted price, because
they need a certain amount of money, in order to move on and do what they’re doing. It might
be that they’re about to go repossessed and the bank is going to take the house off them
and they’re going to loose the house, because they can’t pay the mortgage, and you’ve going
to buy it off them, and although you’re buying it at a real discount, which is great, for
them, it’s the lesser of two evils. So you’re actually helping them, this isn’t about exploiting
people, this is about you running a business, trying to get bargain properties and finding
people where it’s actually a win-win. And of course, they might not be in the best
situation in the world, but it’s going to be the lesser of two evils and you buying
it off them at a discounted rate is better than the other option, so that’s the key.
Be cool, calm and collected, find motivated sellers. So how do you find these types of motivated
sellers? Well, they’re everywhere. You can find them online, you can go on … I really
love a website called Gumtree. What I like to do is go on Gumtree. If they’re selling
their house on Gumtree, they’ve got to be pretty motivated, because come on, who puts
their house on Gumtree for sale? So what I do is I look for properties on Gumtree and
I search from oldest listed and I find all the properties that have been on Gumtree for
months, or maybe even years, that they can’t sell and I’ll just phone them up and say,
“Hey, why can’t you sell this house? What is the problem?”. Find out their issue, find
out why they can’t say what the problem is, and then see if I can overcome that. So that’s one way, Gumtree. Next is, tell
everybody what you do. Tell the world that you are a property investor. Put on your Facebook
that you are … maybe you say, “I’m not a property investor, I’m a plumber.”, no, no.
You’re a plumber and property investor. Tell the world that you’re looking to buy properties.
And then what will happen is … I mean, I get between 20 and 30 messages a day on social
media, from people that are stuck or they’ve got a property they need to get rid of, just
because everyone knows that I’m a property investor. So tell the world that you are a
property investor. Number three, build relationships with estate
agents. I think that a good relationship with an agent is a lot better than a good deal,
because if you’ve got a good relationship with an estate agent, they going to potentially
be able pass you all the best properties before they even go on the market. So make friends
with estate agents, take them out for coffee, show them that you’re serious. If you’ve got
thumbs in pies, show them. Show them that you’re financially qualified. Tell them what
you’re looking for. So there’s just a few ways that you can find
motivated sellers and get your foot in the door to get in these types of deals. So there’s
just a few ways, but there’s many more. And the more motivated sellers that you’re dealing
with at one given time, the less motivated you’ll be, because you’ve got lots of choices.
So it’s going to mean you can get even better deals. Now once you’ve found these potential properties,
you’ve found these motivated sellers, how are we going to secure this property at such
a good bargain price? Well, here’s my tip for you. First thing you need to do is you
need to find out, not what the asking price is … many amateur investors get mixed up
between the market value and the asking price. They could be asking for a million pounds
for the property, it might only be worth 100,000 pounds. So what the seller is asking for is
irrelevant. You need to be able to work out what the true current market value is on the
house. Now we run something called The Property Investors
Crash Course, where we show you how to value any house. One of the ways that we teach this
through, one of the ways is we teach you to look at what has sold, not what’s selling,
but what’s sold in the street recently that is similar. And you can do that for free on
Rightmove, by looking at the House Prices tab at the top of rightmove.co.uk. So once you know what the current true market
value is on the property, you’re then going to be able to say, “Okay, the house is worth
£100,000. I want to buy it for £80,000”, or whatever it is that you might want to buy
it for. Now, never put the offer in first. If you’re speaking to the vendor direct, always
make them give the first figure, because for all you know, it might be on for £100,000,
but they might be selling it for £65,000. So if you go in and say, I’ll give you £80,000
you’ve paid over the odds of what you could’ve paid. So always make them give the first figure.
So don’t go in and say, “I’ll give you £80,000 how does that sound?”, or, “I’ll give you
£90,000”, or whatever. Say to them, “If I was to give you cash tomorrow, what would
be the absolute lowest you would accept and still live with?”, and then just shut up until
they speak. You don’t know what they’re going to say. If they say, “Oh, well it’s on for
£100,000 I’ll accept £99,000”, then there’s no point offering £60,000. But if you offer
£80,000 and they would’ve accepted 60, then you’re screwed as well, so let them always
put the figure in first. So what would be lowest you could accept and still live with?
Wait for them to speak. Now if they absolutely will not give you a
figure and they’re just like, “Well, what will you offer?”, always try make them offer
first, but if they absolutely will not, then put in an offer that you are embarrassed with,
okay? Like a really embarrassing offer, because if they want £80,000 and it’s on for £100,000
and you come out and say £60,000 they go, “Hah! No.”, you’ve not lost anything, apart
from just maybe looking a little bit cooked for it or whatever, but you’ve not lost anything. So find what the true current market value
is, make them put the first figure in first and the thirdly, if you have to put the figure
in first, do an embarrassingly low figure. Once you’ve secured a property like that,
it might take you 20 hours to find one property like that, half a week, but if you manage
to get £20,000 or £30,000 off the true market value of a property in 20 hours, that’s like
more than £1,000 an hour that you’ve been paid in equity. So I think it really pays
to try and get a discounted bargain properties and of course, you want to make sure the rental
is good as well, to make sure that it stacks. I’ve done other videos on that. You can check
above here, just above on this video. If you can’t buy the property and they accept
and you’re like, “Oh my goodness. I’ve just had an offer accepted of £60,000 and it’s
worth £100,000, but I can’t buy it”, then who do you know that can? Who could lend you
the money? Maybe you could do a joint venture? Or maybe you could pass that deal onto somebody
else and charge a finder’s fee. I tell you something, if you found a property that was
worth £100,000 and you got it for £60,000 I’d pay you £5,000, £10,000 for it. There’s
many things you can do. The world is your oyster when you know how to find good property
deals like that. I hope that’s been helpful. Please do subscribe
below if it has. And don’t forget to smash that like button, and I’ll see you next time.
Thank you so much for watching this video, it’s Mentoring on a Monday. Every single week
at 7 PM on a Monday, between 8 PM, I’m going to be live answering all your comments and
questions. Don’t forget to subscribe right over here, so you’ll never miss one of these
videos. I’ll see you next week at 7 PM. Also, if you haven’t got a copy of my book, you
need this in your life. You can get it from Amazon for 10 pound 99, or a gift from me,
absolutely free, down below in the description link. I’ll see you next week, Monday, at 7
PM.

14 Comments

Mo Darouich

Feb 2, 2019, 3:12 pm Reply

Thanks for a great video! What is the best way to invest 10k in the property for buy to let if i'm 21? This will be my first property investment

Ehab

Feb 2, 2019, 3:56 pm Reply

Hi Samuel, can't find the link to the book in the description as you mentioned in the video?
Regards

big Boi

Feb 2, 2019, 4:02 pm Reply

True market value lol

Nic Mcdonnell

Feb 2, 2019, 6:35 pm Reply

Great vids. Can you do a video on what sort of deals to ask estate agents in London or surrounding areas? Most have article 4 now and SA's are tricky with the short let rules here. I have lots of estate agent friends but im not sure what to ask for.

Kay Tam

Feb 2, 2019, 9:37 pm Reply

Hi Samuel,

My parents want to invest about 200-300k in property and they have tasked me with finding them property. They want to buy and let.

How many properties do you think we should invest in with that sort of budget?

How do we find suitable properties?

Lewis Clark

Feb 2, 2019, 10:25 pm Reply

Hi, at school I need to pick a job to do work experience at and I am interested in doing what u do. Do u have any recommendations on where I should do it at?

Harry Guanous

Feb 2, 2019, 2:41 am Reply

Hey, I have been sick lately, thanks to your video, you have encouraged me to continue investigating property investment through your valuable content
Thank you 🙂

Damon Keizer

Feb 2, 2019, 9:00 am Reply

Some golden nuggets here Samuel. Love what you said about actually helping people in their situation, and how you should tell everyone you are a property investor! Thank you!

Top 10 Studio

Feb 2, 2019, 3:56 pm Reply

Hi Samuel, Can I do this if I'm not a UK resident? But a resident of EU…

ozzycarnut

Feb 2, 2019, 9:07 am Reply

some excellent advice here. thanks samuel. particularly from about 5:00 onwards. im about to jump on a property here in australia, which is notoriously overpriced. the seller wants $500k + AUD (277k gbp), this price is very optimistic. its worth not a dollar over $400k aud (221k gbp), as the market is softening in australia, particularly in the capital cities. in order to get this dreamer down from $500k to hopefully under $400k, im going to have to utilise every trick in the book, including your tips of offering 20% under and see what happens.

James Sanchez

Apr 4, 2019, 3:51 pm Reply

Great video Samuel! I feel like i’m really learning from your tips. Quick question, so am i right in thinking that these deals are only possible to achieve if you’re buying in cash and DONT need to mortgage the money? Hopefully hear from you soon

Xbot4Life

Jul 7, 2019, 6:47 am Reply

Buying with emotion

Cough Castle Cough

Xbot4Life

Jul 7, 2019, 6:49 am Reply

i read that its HARD to get mortgage on DISTRESSED sales.

Joe Wright

Sep 9, 2019, 7:11 pm Reply

Hi Samuel,

I have found a BMV property near Sheffield, it is worth £105k but I can get it for £90k. I can't afford it myself, do you know anyone who would be interested in it for a small fee of say £1k?

Joe

Ab Rabosea

Sep 9, 2019, 7:24 pm Reply

Hahaha my goodness this are golden nuggets!! Thank you Mr Leeds 💪

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