My First BMV Property | A 29% Below Market Value Property Investment UK!

My First BMV Property | A 29% Below Market Value Property Investment UK!

– Today let me share with you, how I found my first ever
truly below market value deal, where I got a 29% discount
below the market value. I wanna tell you how I found it and I wanna give you all of the numbers, so that you can start
doing deals just like this. (light music) Hi, my name is Tony Law
from Your First Four Houses and I teach people how to put
a small property portfolio that generates a great income for them, so they can give up the
day job if they wish because they’re now financially free. If this is your first time here, be sure to subscribe to the channel and click that bell notification icon so that you don’t miss out
on any of the free content that I give you each and every week. So the truth is, I never used to believe that I could properties
truly below market value. I mean, why would anybody
sell their property truly below market value, and importantly, be really happy to do so. But I’m delighted to say that I’ve actually done
this now many, many times. But I wanted to share with you my first ever below market value deal, so you can see exactly how
I put this thing together and hopefully start
finding and doing deals like this yourself. By the way, stay tuned until the end because I’m gonna be sharing
not only how I found it, but all of the numbers as well. So this is my first ever
below market value deal that I bought in Poole back in 2011. It’s nothing particularly special, it’s a semi-detached house in an okay area in the middle of Poole. I found it using a strategy I
call Street Level Networking. Now I’ve talked about Street
Level Networking before, essentially in simplistic
terms, you get out there and you walk around your investing area. There is a bit more to it than that, well quite a lot more to it than that, but in an essence you out there and you start walking around the area. And when I did this, I
actually met a person who was literally standing
at the end of his drive. I got chatting to him, I
initiated the conversation, I’m really speeding this process up, but in an essence we had a
cup of tea, we had a chat, in fact we had a series of
chats, and I negotiated the deal. The seller’s situation was that they dearly wanted
to move back to Wales, which is where they’re originally from. But the problem they had was
that the house was a real mess and they couldn’t find a buyer. To be really honest with you, they were a lovely, lovely couple, but the house was a genuine mess. I mean they had loads and loads of dogs, the dogs weren’t getting out of the house, there was literally dog
mess throughout the house. That gives you an idea
of what I walked into, and so can you understand? Of course you can understand, how sellers or potential buyers
are walking into this house and they were kinda turning around or walking straight back out again. So the solution I offered up was an exchange and delayed completion, which is in essence exactly as it sounds. You exchange today and you
delay the completion point until a little bit further down the line. Now why is that an advantage
for this particular person? Well it meant that they could go to Wales, they could find a fantastic opportunity, a fantastic deal, in Wales
and the agent would listen, the agent would submit their offer in the full knowledge
that they had an exchange that was actually happening. So he put deals in front of them that he would maybe not have been willing to put in front of people who were less in a proceedable position. And in actual fact, this particular person found a fantastic opportunity in Wales and I actually interacted with their particular agent as well. I’m making this sound far
more complicated than it was, but it meant that they
got a fantastic deal and I know they wouldn’t
have got that where they not in this exchange and
delayed completion scenario. By the way if you find this
video in any way helpful, I would love it if you could click on that like button down there. It really helps me, if that’s okay. Okay, so what about the numbers now? Well because of the state of the place, we agreed a purchase
price of 110,000 pounds. My refurbishment and
other associated costs came to 25,000 pounds. Now admittedly, because
I’m a carpenter by trade that’s where I originally started out, I did do quite a lot of
work on this place myself. I brought in trades to do
it, but yes I was on site, I was doing quite a lot
of the carpentry aspects to the site. Certainly I was sweeping
up at the end of the day, and I was making the teas and
buying the Subway lunches. But I loved doing all of that! I’m really comfortable in that zone. So my all in costs came to, once I added these
together, 135,000 pounds, but the market value,
the genuine market value, at the time was actually
at around 190,000 pounds. So my profit upon completion of all the works was 55,000 pounds. After I refinanced this
particular property, I was able to pull out all of my money. All of the money that
I put into this deal, and so if you work out
the return on investment you’ll find that that
was actually infinite. By the way, if you’re not sure exactly how to calculate return on investment, can I suggest you check
out this video here where I explain how you do that. And so the value today on this
property is 280,000 pounds, and there’s a fantastic
tenant living in there and I’m gonna be keeping
this property forever. Now the important bit
I wanna get across here is that I know I wouldn’t
have found this property had I not been walking
around my investment area, and I know I talk about that a lot. So please, make a commitment to walk around your
investment area this week and talk to the people in that area. Talk to the person who is the corner shop, the owner of the corner shop, they know what’s going on in
their area, they certainly do. Engaging conversations, keep your eyes open for opportunities, and I honestly you will find something the fantastic deal this week. In my completely free
property mini-course, I teach you how to find
deals just like this one. To enrol simply click the link here or the description box below and I’ll start sending those
lessons straight out to you.

11 thoughts on “My First BMV Property | A 29% Below Market Value Property Investment UK!

  1. Another great video Tony thanks.

    Is this what’s called a Lease Option?
    Also, if yes. How was the vendor able to move on and finance their next home (in Wales) if this was a Lease Option? Surely they would need the funds in order to move? Or have I missed something? Sorry.


  2. I enjoy these examples videos. Really great information.

  3. Thank you for sharing, Tony. May I ask what refurbishment work was carried out at this particular property and is this now a single let or HMO rental ?. Thanks !

  4. hi tony great video that.s what I.m doing more walking

  5. I've found and bought 2 houses at well below market value in exactly this way. Not done delayed completion yet but it's a great tip. People seem to think it's a bit like taking advantage of someone to buy at BMV. I dont think it is if you are helping them., or if they genuinely want to help you. Of course the best deals work that way for both of you. Ive found that people who aren't even sure they want to sell soon realise they do when a ready buyer comes along. A serious ready buyer removes all the stress of advertising and all the agents commission too. Surprising how demotivating having to give away a percentage of your equity to an agent can be. Thanks Tony.

    Edit ; That bit about agents fees may seem like a contradiction……I suppose selling at BMV (whilst this amounts to giving away a percentage of equity to the buyer, ) is justified by the state of the property or the circumstances of the seller. Whereas, giving that percentage to an estate agent ALWAYS feels like they took it and did nothing for it ! P.s. I've always made my own for sale signs and handle viewings myself. No problems selling either.

  6. Thanks Tony. You are a great mix of having a trade but also having sales and people skills. Plus you are very smart on the numbers. Would you maind saying how long the delayed completion was roughly? Thanks.

  7. I'm trying to find a LOA or rent to serviced accom to get the ball rolling 🤞 I went to my first property networking meeting tonight. Very exciting

  8. Hi Toney love your videos. On a delayed completion the valuer values on what they see I.e they value what it’s worth done up rather than concentrate on what you paid for it. I’m just curious how you got 55k profit if you refinanced to a mortgage. For example 75%ltv x 190k=142k less your costs 135k =7k profit with all money out the deal. I understand if you was going to sell there would be 55k profit on completion but how does that work on a refinance. Kind and humble regards.

  9. Excellent video as always! I really want to get into property but I went self employed this time last year. Just had a mortgage advisor come in as it’s time for renewal and we wanted to release some equity to build a air bnb in our garden. He basically said we can’t as I only have a years books but In two years time the market will be more open. Is he having me on? Or does that sound about right? I don’t mind waiting the two years to gain as much experience as possible. Just making sure. Thanks!!

  10. Thank you so much, fabulous tips

  11. V good video pls keep posting also shed some light on foreign properties

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