The Most Important Aspect Of The BMV Property Investment Business

Many excited property sellers and their estate agents have had to cope with the disappointment of a lost deal due to a declined bond application based on insufficient buyer credentials (affordability) and not the valuation of the property. Not to mention the lost deals while you were waiting for the first buyers bond approval.

Estate agents and private sellers, especially motivated sellers, favor working with “cash” or pre-approved investors. Most BMV properties are available from motivated sellers who tend to ignore their financial plight until the last minute before they try to take action. This leaves the property investor with limited time to close the deal before the property is repossessed and auctioned.

Pre-arranged finance gives an experienced investor the edge over the traditional property investor as he can close quickly and unconditionally on the deal before repossession. Traditional property investors will make their offer subject to lengthy bond approval processes and even to the sale of other properties and will not succeed in the BMV property market.

The most important aspect of the BMV property investment business is to have various lines of short and long term credit available to finance your properties.

Short term finance is available from numerous financing sources overlooked by the traditional property investor.

The fist source is always the motivated seller. Motivated sellers are usually open for creative offers to save their credit rating. You can even buy the property without having to cancel the existing bond on the property.

The second source is your own unsecured lines of credit such as your credit cards and overdrafts.

The third source is the equity in your own properties access bond accounts.

The forth source is private lenders who require a better than money market rate return and are comfortable with your property investment business risk profile.

Bond finance from credible financial institutions is the best long term property finance available. Most financial institutions have a variety of buy-to-let property finance products available. A good bond originator, who understands your property investment business and affordability ratio, will be able to negotiate the best deal available in the market at the time.

As soon as your short and long term credit lines are in place, you can make your unconditional BMV offer and fund it from your short term finance. You will make an instant cash bonus as soon as the properties bond is registered at the properties market value. Financing your property this way will guarantee an instant profit, available in your access bond, without having to use any of your own money.

Remember to always remain within your affordability ratio and always buy BMV.