What makes a deal 'good'?

Is it the monthly cashflow or the amount purchased BMV?

Do you use anything else to measure your deals?

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Sarah-Marie

Tycoons Community Manager

As my current strategy is 'buy to sell', I define a good deal as buy at >30% BMV and sell at 85%-90%, thus making approx 15% gross.

Or (if the vendor agrees and it suits their particluar circumstances) taking the property on an option agreement and selling them on the open market or auction.

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I think Absolutely amazing how you have answers to many questions being asked in the property tycoon discussion you realy can learn so much from people like your self just want to thanks and wel done your doing a realy good job hand up to you lol

Pretty simple answer to this question. If my worst case scenario is I don't lose any money and the potential returns are worth the time/effort invested then it's a good deal.

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If you can fill the unforgiving minute
With sixty seconds worth of distance run,
Yours is the Earth and everything that's in it.

A good deal is one that puts money in my pocket asap.

Kim

A good deal depends on what your overall strategy is. I would never buy an apartment no matter how great a deal it was unless it was in London.

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Anything's possible if you've got enough nerve. - J. K. Rowling

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We have a long term buy and hold strategy so looking to hold forever and not looking to sell anything unless specifically purchased for refurb to sell. For buy and hold it's more important that you buy in area that you expect to have consistently good demand over the long term AND then you must manage it properly to generate positive cashflow. The price we pay today is important as a safety buffer but long term, it doesn't matter if you pay £10k or £20k too much because the property should have more than tripled in value over 20 years

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Parmdeep Vadesha
Managing Director
Vadesha Properties Ltd

“the species that survived were not the most intelligent –they were the most adaptable to change” Charles Darwin

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Anything I buy needs to be minimum 25% off a current valuation and cashflow positive up to 7%. I would move from this only if I found a property at an incredible discount, incredible potential to add value, or phenonenal yield.

I think 25% or above BMV and 7% or more yield, avoid bottom end of the market and that way hopefully avoid bottom end tenants.

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Looking to buy property in Hartlepool and the surronding area.

Helping People with Property Problems

email derek@derekpapeproperty.com
Web www.derekpapeproperty.com

In some circumstances I would pay full market price if needed, my strategy is to buy and hold, with good cash flow, if it puts money in your pocket, then it's a deal. Why would you restrict yourself to BMV if you can work non BMV deals positivly in another way, such as Options?

A good deal is one that fits your personal investment strategy criteria - its as simple that IMO.

The problem - and I know this is true having spoken to 100's of investors over the years - is that many investors have no real investment plan or strategy. They haven't taken the time, or taken the relevant advice, to sit down and and evaluate what they are trying to achieve, the best way to do it and what property and what 'deal' fits their planned goal.

Result? They don't really know what they are trying to achieve, what property they should be buying and what is a good deal and what isn't.

No disrespect to those saying "I wouldn't buy at less than 25% BMV and 7% yield" but that isn't really the way to define a good deal. Does that mean you wouldn't buy at 24% BMV and 6% yield? What if the higher BMV/yield property was on Asbo Avenue in Run Down Town and the lower BMV/yield was in central London?

Relying solely on BMV especially is a bit like judging a second hand car solely by the mileage on the clock - it only tells a small part of the story. The 'valuation' that the BMV is based on is as easy to wind up as the mileage on a clock is to wind down.

My advice to any investor is to get a plan and stick to it. Buy what fits your plan - that is the best way to get a 'good deal' and don't worry if another investor thinks your good deal is a bad one. Chances are they are a 'BMV jockey' with no strategy and plan.

As Deep says, £5K or £10K is neither here or there if you are a medium to long term investor - unless all of your 'good deals' are in Asbo Avenue ...

Colin Parker
ONEPORTFOLIO

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www.opentooffers.co.uk
Property Bargains Throughout The UK
You Negotiate Direct With Motivated Sellers !

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OK then if you were buying now with a 10 year plan what would you buy??just thought it is a question that should be asked that no one asking?I know my plan..ta.

Kim