BMV Property stands for Below Market Value property. But what exactly is it? Below Market Value properties have received their name because they are priced less than what they are worth on the open market.

When property investors learn about bmv property they obviously want to get in on the action as there is instant profit to be made. The reality is it is very difficult to find below market value properties because if they were all below market value they would not be considered as a discounted property – do you get my drift?

In today’s housing market there are a lot of cheap properties to buy, this is not because they are a BMV property but due to the sticky economic situation we find our great nation in. House prices are way down on the peak experienced during 2006, giving the illusion that you may have found a bmv deal.

A true bmv property is one that is sold by a motivated seller. The vendor needs to sell the home very quickly. If the homeowner is lucky enough to find someone looking for a bmv property before any repossession orders go ahead they sometimes remain in the house as tenants. This makes bmv property deals a great long term investment with no hassle of finding tenants.

Often homeowners are not so lucky and you will find bmv property being sold directly by the lender who has repossessed the property. Vacant possession bmv deals can either be flipped for an instant profit or used as a buy to let investment.

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