I came across an interesting article and really agree with claim #3.
Claim #3: Below-Market Value (BMV) Deals are the Norm
This is an old chestnut of property gurus. In the real world, below-market value (BMV) or under-valued deals are very rare. Experienced investors regard them with suspicion. They typically mean the buyer overpaid or the property is just worth what it is.
Competent investors always pay market price if it meets their required yield returns. It is much more time consuming to find BMV deals, so it is mainly a strategy for those whose time has little value. If you always try to source for BMV deals, you would be forced into a few niches where you would wander the land as a sort of beggar pleading with sellers to sell you their properties at below-market price. You don’t become rich by being cheap to others.
Instead of trying hard to find that magical BMV deal, try asking yourself this: “Where can I find under-valued areas to invest in instead?” Also, “Have I acquired enough financial education to know when that opportunity comes along?” Often, the answer lies in your own backyard.
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