Everyone’s investment objective differ. This is due to many factors, such as; level of monthly inward cash flow, proposed retirement date and attitude to risk. Bearing these factors in mind, we would all love to maximise the value of the asset we invest to reap maximum returns on our capital invested.
Inside investors and wealth people maximise the returns by seeking our below loan value (BLM) assets rather than below market value (BMV). BMV arises where a property is being sold at a price below a professional surveyor's estimated market valuation. BMV tends to be a myth as it is difficult to determine the real or genuine market value of a CRE asset or property in a falling market. In other words, BMV do not exist when prices are falling, but only exist when prices are rising. Hence, sophisticated investors search for BLV properties in a falling market.
Below Loan Value (BLV) assets arises where a property is purchased below the value of the loan secured against it. For instance, if the property is worth £100,000 and the mortgage or loan(s) secured against it is £80,000 and you bought the property for say, £70,000. Clearly, you have accumulated real value.
Another way wealthy investors distinguish their strategies from average investors is by sourcing BML from exclusive avenues. Smart investors source BML properties from distressed banks and other financial institutions holding distressed assets. Whereas, average investors put in alot of energy, effort and time in sourcing BMV properties from distress homeowners and other average investors.
So, are you ready to rewrite your invest goals and accumulate genuine value? You can email us and we will provide you with a free financial overview.
