Below Market Value (BMV)
- Buying property below the perceived market value.
- Often involves buying property from 'motivated sellers' of distressed property in pre-foreclosure status.
- Home owners about to lose their homes are encouraged to sell to such buyers on the basis they can remain in their own homes as 'tenants'.
- Any debt on the home is normally repaid by the investor. The investor gains the advantage of a reduced price property whilst the seller avoids bankruptcy and having to move. Allowed to remain in the same home a compromise is achieved.
- Controversial topic with dome investors selling within a short time of purchase resulting in the home owner now tenant becoming homeless.
Published: 24 September 2015 Last Updated: 17 November 2021