Tuesday, March 17, 2009

Below Market Value

All experienced Real Estate Investors focus on true Below Market Value (BMV) properties as a way of ensuring equity from day one. Many inexperienced investors think they may be getting properties at below market value, but when these deals are analyzed they may not be as juicy as they initially appear.
The secret to acquiring BMV properties is to do your due diligence - Resarch Research and Research!!!
Much real estate in the USA is currently for sale at Below a Market Value - but- the question you need to ask - is it below what the current market value of a property of equal standing? It does not matter what value an agent or for that matter what a valuer (even a reputable one!) puts on the property. The value of that property can only be measured against a property on the same street , in the same condition which has recently sold.
This information may not always be available and you will have to do some serious investigative work to acquire it!! However, when you have this information, you have control of the situation. There are many ways to get this information, among them Online Valuations and even word of mouth. Some of the best information comes from developing good communications with local agents and other experienced investors. Experienced investors will often be willing to share their ideas and secrets with you if you are prepared to invest some time and energy - Sweat Equity!
Why reinvent the wheel? Go and seek out a mentor!
Happy St. Patrick's Day!!!!!

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