Category — BMV Investing

As I am sure you know there has been a bit of a stir created by my Death of Property Investing Report which I put out onto the internet last month. As a result of the tremendous feedback I received from that I have recorder a video about how to finance your purchases in the current climate. Rather than No Money Down (NMD), I prefer to use No Money Left In (NMLI). All is explaining on this video. Click here:

Kind regards,

Simon Zutshi

As UK property prices continue to fall due to lack of buyers, for the first time in many years, estate agents are facing the danger of redundancy. This means that estate agents need us in order to stay in business and employment. [Read more →]

I am consistently amazed by the number of so called professionals in our industry who don’t know what they are doing. Last weekend I was speaking at the Homebuyer Show at ExCel in London, where I was asked to share my views on the topic of ethics in relation to buying property below market value from motivated sellers. At the end of my presentation I opened up the floor to questions and I was asked “What would happen now that Mortgage Express had pulled their same day re-mortgages?” [Read more →]

On Thursday morning I received a call form a panicked lady who was getting repossessed (evicted) at 10.30am the next day! When she told me her name I thought that sounds familiar and I realised that I had left several messages for her before Christmas. It was a lead that I had purchased form another investor, but I thought it had dried up. She apologised for not coming back to me sooner but she admitted that she had just buried her head in the sand in denial about what was happening. This is often the case for people in this kind of situation.

Anyway to cut a long story short, with the help of one of the solicitors in my power team, we managed to stop her getting evicted by [Read more →]

Over the past few weeks there has been significant media interest in the practise of buying property below market value from motivated sellers and allowing them to rent back for long term.

The coverage has on national TV has been varied. “The Money Programme” which featured Glen Armstrong of Repossession Angels, showed the positive side of the business where people are saved from repossession, allowed to rent back at a fair market rent and even have an option to buy back in the future.

In contrast, “Tonight” with Trevor McDonald had a more negative spin about people who sell their homes to BMV companies with the impression that the will be able to rent back, only to be kicked out of the property 12 months later. This is of course totally unethical. I have no doubt that there are some unscrupulous companies out there who are deliberately taking advantage of people.

There are also an increasing number of amateurs investors out there who are attracted to the concept of being able to buy property with no money down but who have no clue about what they are doing and how to handle motivated sellers. The danger being that they don’t know what they are doing and may make promises that they just can’t keep.

So what does this mean for you? Should you be looking to adopt this strategy? My advice is only if you do it ethically. Anyone who has seen me speak about buying property below market value will know that I always talk about ethics and how you can make it a WIN WIN deal for all involved.

There is no doubt that if someone is about to get repossessed and experience all that is associated with it, then it has to be better to sell their home to an investor who will pay off their debts and give them a fresh start and an opportunity to minimise the disruption to their life by renting the house back.

It must be in your interest to keep the motivated seller as a long term tenant. Yes it may be possible for you to get more rent but it if you increase the rent and kick out the vendor of the property you may well have a void period whilst you find a new tenant. This may cost you more in lost rent than you gain from the rental increase.

The other benefit of allowing the tenant to stay long term is that often they will treat the house as their own home and continue to make improvements to your investment. That has to be a goof thing. So by being ethical both the seller and purchaser get a good deal.

To learn how to buy property below market value ethically you may want to consider my property mastermind programme. The next one is full but we are taking names on the waiting list. For full details and to express your interest click here.