How to find properties at 20% BMV

Properties at Bellow Market Value

To identify those properties on the market being sold at 20% BMV, you will need to source the owners who are desperate enough to want to sell their homes and cannot afford to wait to take advantage of the best price or market value. These people are called ‘Motivated Sellers’.

What is a Motivated Seller?
There are two main factors that make a ‘Motivated Seller’. Firstly, and the most obvious, a motivated seller is a person who has an immediate requirement to sell their home or property to access their money.
Secondly, due to financial pressures, timescales become more apparent and the required time to meet them shorter.

The combination of these two factors can easily force a person to sell their property ‘Below Market Value’ (BMV).

A motivated seller is a valuable commodity, as valuable as gold dust to a property investor as yourself. They hold the key to purchasing properties below market value.

My experience has taught me to only purchase property from a ‘Motivated Seller’.

As part of your property investment education, it is important to understand what forces a person to become a ‘Motivated Seller’.

Repossessions

Under the terms of most mortgage contracts, the lender will reserve the right to issue repossession proceedings if repayments are not regularly made on time. Two months of arrears is quite sufficient for a lender to take action. In reality, most lenders will try to reach a mutually suitable arrangement to help the person clear his/her arrears and avoid taking proceedings.

Unfortunately, should this not be possible the lender may take legal action to gain possession of the property. At this point the lender may commission an estate agent to take action to sell the property quickly. This usually results in the property being sold under market value.

Financial Problems

When people get into financial difficulties and then struggle to pay off their mortgage repayments, credit cards, loans and other bills, they may wish to avoid CCJ’s or a downgrade to a smaller home. As the financial  pressure mounts the need for a quick sale becomes paramount.

Divorce or separation
Divorce or separation together with selling your home are among the most stressful times we may encounter in our lives. Having to deal with both situations at the same time can prove very distressing.
At this daunting time both parties need to resume their new lives as quickly as possible and the most efficient way of selling their property would be to sell under value.

Relocating or emigration
A fresh start, a new job overseas, a new partner or relationship are just some of the reasons why there may be a need to sell a home or property quickly.

Bereavement
Families that suffer bereavement or have to re-home an elderly relative may take on the responsibility of selling a property quickly and painlessly before suffering additional costs or stress.

Residential Letting Software for More Effective and Streamlined Property Management

Residential

 

With the increasing number of government initiatives and legislation referring to the upkeep of property, the individual demands of tenants combined with the expectation of the property owner, it is little surprise that many property management companies rely heavily on property management software to help them manage their portfolio.

Unfortunately, until now, most of the rental property software available was often designed along a single theme, such as keeping a record of property maintenance. Using this software for other tasks for many companies proved impossible or so time consuming that it becomes impractical to even try to do so.

The result is often a bundle of residential letting software that is ad-hoc, repetitive, inefficient and time-consuming for the end user, and this is hardly an ideal situation in the rental property market, where efficiency, professionalism and immediacy are the hallmark of a successful business.

Now, however, there is the perfect solution. The latest bespoke designed residential letting software. The program is rewriting the definition of just what is possible from residential letting software.

No longer will property management software be simply a database that is awkward to update. The complete solution, offering a vast range of solutions that can streamline your business, making you more effective, efficient and economical.

From organising residential property management software to marketing, property maintenance, client accounting, document management and work flow automation, letting software delivers the complete range of utilities that ensures managing your properties is easier than ever.

Furthermore, residential lettings software can be used entirely as web-based letting software, meaning that should you be out of the office on a visit, you can still access the complete program from the internet. This offers a new degree of flexibility for the property management consultant.

In addition to helping with the general admin tasks, the software avoids duplication of tasks, increases the productivity of your workforce and in a new development for property management software, allows you to ensure that maintenance records and client accounting is kept up to date, all in one central location. This frees up vast amounts of time for your team to spend their time on providing outstanding customer service, rather than general administration tasks.

Any company with a portfolio of properties to let needs rental property software for the 21st century. The property management software that achieves this in the easiest, simplest and most flexible way possible, allowing companies to both address the individual needs of their clients and manage their properties to the highest standards.

Choose your letting software that takes the strain so you can focus on delivering a professional, efficient and effective service to your clients.

How to Handle Your "Impossible" Tenant

Everybody has had them. I can remember the name of every one of them. These are the tenants that won't play by the rules, and have no limitations to the amount of grief they can cause you - most actually delight in calling a hundred times a day, and complaining about things that most people would never dream to even talk about.

So until every manufactured home park tenant becomes a solid citizen, this is a primer on how to handle them, and avoid the type of liability and unpleasantness that they can cause.

Which Type Are They?

For the sake of simplicity, I'm going to divide problem tenants into two groups: 1) behavioral and 2) verbal. "Behavioral" problem tenants take actions that jeopardize the welfare and aesthetics of the community. "Verbal" problem tenants do their damage by harassment of the park management.

Both types are not conducive to a well-managed, profitable park, and must be immediately disarmed and/or removed from the property. However, in many cases, the proper steps can cure their issues and make them a normal, paying tenant again.

"Behavioral" Problems

The first type of behavioral problem is the tenant who engages in criminal activity. The most common of these is manufacturing/dealing in drugs. Signs of this type of behavior include a constant stream of cars dropping by the house - normally at night - for very short intervals, as well as people milling around in the street at night, in the vicinity of the manufactured home.

The important step here is to do nothing yourself, but to only take action through the local police department. You should never get directly involved with this type of tenant, due to risks of physical harm to you and potential liability. Call the police department and tell them what you have been observing. If there really is something to what you suspect, the police will take care of it.

But if the police fail to take action, then your next step is to non-renew the tenant's lease. Assuming that the tenant is on a month-to-month agreement, you can simply not renew, and they have to move out at the end of the next full month. Even then, it is smart to have a local attorney file this notice and to handle any subsequent legal action to evict them.

The Tenant Who Won't Keep Their Property Up

Equally disruptive - but not as scary - is the tenant who refuses to keep their property in an acceptable condition. Debris everywhere in the yard, a house with a paint job that you can hardly tell what the original color was, or grass that is 3' tall. It is impossible to ask the rest of the park community to keep up their property when you allow this individual to get away with murder. So what do you do?

The first step is to notify the tenant in writing that they are not in keeping with the park rules. This assumes that your park has rules; if not, you need to adopt some immediately. It is essential to keep everything in writing so that you have a legal paper trail in case you should have to go to court for any reason.

Give the tenant a detailed request of what needs to be done to be in compliance with park rules, as well as a timetable to complete the work. Of course, they will rarely meet this deadline, but it's the critical first step to show the court that you are trying to be reasonable.

Once the deadline has passed - and the clean-up has not been completed (or probably even started) - then you have two choices: 1) non-renew the tenant's lease or 2) take matters into your own hands. To take matters into your own hands, I'm suggesting that you clean up their yard, mow the grass, or re-paint their house at your own expense. You can then either bill the cost back to the tenant, or just write it off. How do you choose what to do? The key is the tenant. If your tenant is old and infirmed, then they simply do not have the ability or funds to make the needed repairs. If they have paid their rent like clockwork for the past several years, why cut off that income stream by evicting a good-paying tenant? If, however, the tenant is young and able to do the work themselves - but too lazy to do it - then you might want to bill it back to the tenant to send a clear message that breaking of the rules is not tolerated. You might break the charges up into several monthly installments to make it more affordable. But you cannot let people continue to ruin the park for everyone.

The Verbal Problem Tenant

These are the tenants who complain continuously about anything and everything. They don't necessarily disturb the other tenants - their aggression is focused on the park management. I have had these type of tenants who will call at 11 PM and then again at 6 AM; they have virtually no boundaries.
These are much easier to dispatch than the behavioral problem tenants. You simply have to turn the tables on them. Here's how.

When the tenant calls to complain, tell them "you are clearly unhappy living here, you really should move to a manufactured home park where you would be happier." This throws the tenant off immediately, as they think that their power over you is that you don't want to lose them. When you let them know that you don't care about their rent anymore, they are now in a position of weakness. In addition, it costs around $3,000 to move and set a manufactured home. So for them to move, they will need to come up with $3,000 cash. Who's in a position of weakness now?

Conclusion

Problem tenants can be solved. Don't let a tenant ruin your day. Take action and turn the tables on them. It's good for you, and it's good for the community.