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Is THE INVESTORS CLUB for real?gosnowunda [2 Posts]  I have read through some previous forums on this website from back in 2003 with regards to The Investors Club and am wondering if anyone has any dealings recently? I went to a seminar and didnt learn anything new about investing except with The Investors Club it seems like it will be easier to buy properties as they have loads available, many interstate, which is where i wanted to buy.... I dont have too much spare time on my hands and was hoping that something like this club would make it easier for me to purchase properties and start building a property portfolio. I know the club has been around for a good few years, surely if they were doing anything wrong the govenrment would have shut it down?? Or am I wrong? Any help would be appreciated..... Mortgage Hunter [3784 Posts]  I haven't used them myself but if you are time poor they may be just the ticket. I believe they are for real. Simon Macks Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.  Agave [22 Posts]  I have been to a few meetings with investors clubs and have chosen NOT to persue this option. Some questions I would ask before forking out your dough are: Who is making a commission from my purchase? Why do they always suggest buying in developments such as units? Are they receiving kickbacks from the developer for selling you into thier project? If so, how much? Is this club independant or are they operating on behalf of the developer? Why do they often supply or suggest you use thier solicitors, accountants etc instead of using your own trusted proffessional??? Am I really getting my investment cheaper???? Ask a whole lotta questions of them and the industry before you trust anyone specific source with investment advise. Again, I chose not to pursue this option as thier answers just didn't feel right. It comes down to trusting your gut and what feels right for you.
Stepping Stone [33 Posts]  I went to a couple of meetings and one with an accountant. We walked away feeling that it was a case of the blind leading the blind with some very smart person pulling the strings. Each question asked by the accountant and I was answered with a glib answer backed by little (if no) understanding of the reality or tax law. They came across as a very, very good selling organization for some smart business minded person. And if remember right the people running the meetings were volunteers. Mortgage Hunter [3784 Posts] I know people who have built up a huge asset through the IC. If you are an expert then go alone. If you need your hand held and can afford to pay a little for it then the IC is above board. Cheers, Simon Macks Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser. gosnowunda [2 Posts] Thanks for the replies so quickly. This would be the first investment I am making and thought the investors club would be a good way to start. I have googled the investors clubs and have so far turned up no negativity. I understand that people are making a commission from my purchase, but doesnt this happen in some form down the line in any purchase that any person makes? I see it as a kind of pyramid system, in a simalar way to people who sell tupperware....? I also understand that they suggest you use their solicitors and acountants and brokers, but they also explained that you could use all your own professionals.. Like i said before, i have little spare time and am new to this so having my hand held would be good for at least my first property investment... It was asked are they receiving kickbacks from the developers. The answer is yes, but doesnt a real estate agent get a commission for selling a house? I see this as the same thing.... Also was asked who is making a commision from my pruchase, well i would have thought the developer and the investors club in some form. Its hard I guess to trust people, especially when you see many people getting sucked into scams on tv all the time... I would have thought if this was a scam, it would have been exposed by now. Maybe i am just seeing all the positives.... No one has really given me any substantial negatives yet..... Alll help would still be appreciated... Deeve [6 Posts] Hi I'm not familiar with the IC however a book that has some good information on potential traps in using buyers of real estate is "The insider's guide to profitable property investing" by Patrick A Bright - refer pagest 130 to 134. Review in a book shop /library if not wishing to buy. roslynnchalwell... [72 Posts] I attended a meeting and also purchased a property thru them. All I can say is do your own due diligence, check and double check the numbers. I don't know what they are teaching now but it was all about negatively gearing your portfolio in 2002 when we purchased our IP. I would not buy thru them again but that is a personal choice. Our focus has changed since then and now we are actively looking for more CF positive investments. The properties they sell are above market value that is how they make their money. They are for real and don't really pressure you into anything it is just another way of buying property. Good luck. Ros Dazzling [1150 Posts]  Maybe i am just seeing all the positives.... No one has really given me any substantial negatives yet..... Hiya, I think Simon made some valid points, not surprising really, seeing as though he has answered this question probably 50 times or more. What he said pretty much hit it on the head. Buying an IP from TIC is certainly not a disasterous move by any stretch, in fact many people are almost religious in their fervent passion for how TIC has turned their ship around financially. I suppose from my perspective, the biggest negative is a very subtle one that only rears it's head many years after purchase....and that is the opportunity cost of what else you may have purchased with your money....but then that is with every investment and isn't particular to TIC's offerings. TIC always compares against things like cars / super / holidays and other magic investments like that....and obviously their brand spanking new units come up looking trumps in comparison. It's only when you put them up against a real cracker of an investment that they look decidedly pedestrian. This is where the biggest negative is. So when someone says this is good or this is bad.....make sure you always ask yourself the follow up question......Compared to what ?? Depending on what you put it up against, it may look fantastic or dreadful. As always, your particular frame of reference at that particular moment in time is crucial in how you "see" the world. Was that too vague for you to glean anything useful from ?? P.S. I've been going to TIC meetings now for over 5 years and haven't yet purchased anything off them. I go there, not for the slide show presentation, but the casual chats during the coffee breaks. Damn site more enlightening that watching some CSI drivel on TV. Some wonderful stories can be heard if you like investing in brand new residential real estate with no land component. Oh, and the cup of tea is good, although nowadays they serve it in plastic cups instead of proper mugs.....I think the chap pulling the strings had a look in that area as well. Qlds007 [9178 Posts]  No high pressure Salesman at all as most of the members have no in depth knowledge of property investing.. But $5000 from each commission goes to help pay for Kevin Sampe retirement fund. Richard Taylor Bluegum [14 Posts] Unfortunately i have to work for a living (not for too much longer i hope) so i'm time poor when it comes to property investing, so i chose the Investors Club to kick start my wealth creation plan. My first two Perth IPs were purchased sight unseen through them and i have no regrets having done so, as there researchers do a top job. Both properties had tenants installed within a week of settlement, should they vacate, the club vacancy officer jumps into action and promptly qualifies and installs another tenant. Other benefits include discount property management, discount landlords insurance, discount conveyancing. As i said before i'm time poor and this system works for me, and like this forum i can attend their meetings and talk with like minded people who are only too pleased to share their wealth of knowledge regarding property investing. P.S Hey Dazzling, TIC in Albany supply cold beer in glass bottles, call in for a chat sometime. Anitamarshall [79 Posts] I am fairly sure that I have seen someone on the forums that is actually from the investors club so it may be worth having a look to see if you can find them and ask them the questions direct. I handle loan enquiries for my area for clients purchasing through the investors club. My understanding is that they receive a commission similar to if you were purchasing through a real estate agent (instead of going through an agent you are going through the investors club) and I am also of the understanding that they receive a commission/kickback from the people they refer business to. Anita Marshall Stepping Stone [33 Posts] How does there system look in a flat market? Any ideas? "Ut sementem feeceris" Dazzling [1150 Posts] P.S Hey Dazzling, TIC in Albany supply cold beer in glass bottles, call in for a chat sometime. Sounds good - I'd love to pop in for chatski....might take you up on that offer !!! I'm told that Chris and Liana Grannery are active members down there and were recently profiled in API with their successes......who knows, you may be one and the same. I'm also told that you have many PMC members down your neck of the woods. Sounds like a few go getters, especially if they serve proper beers afterwards. In terms of experienced members on this forum who are involved with TIC, have a chat to Derek the guru. He knows a bit. redwing [2752 Posts]  I've heard that the ALBANY TIC members are going "great guns" compared to many TIC's around the country (from memory they have a record for the amount of members in the $1M+ Club?) If nothing else it's worth a look IMHO.. "Money is a currency, like electricity and it requires momentum to make it Effective" Derek [2835 Posts]  Hi Redwing, We are seeing many a member enjoy successes and as you mention we are punching out of our depth a little but........word of mouth does that for you. And Dazzling - the beer is in real glass, our real coffee is in real cups and with real biscuits. We do have a lot of fun too. Got a cocktail and piano function coming up shortly. Derek redwing [2752 Posts] Originally posted by Derek: Got a cocktail and piano function coming up shortly. Derek Sounds like it could get messy Derek "Money is a currency, like electricity and it requires momentum to make it Effective" Kiwi-Fulla [371 Posts]  Originally posted by roslynnchalwell@yahoo.com: All I can say is do your own due diligence, check and double check the numbers. I don't know what they are teaching now but it was all about negatively gearing your portfolio in 2002 when we purchased our IP. I would not buy thru them again but that is a personal choice. Our focus has changed since then and now we are actively looking for more CF positive investments. The properties they sell are above market value that is how they make their money. They are for real and don't really pressure you into anything it is just another way of buying property. Good luck. Ros I agree, I called them a few months ago (to see what they were about) and all I got was they were using all negatively geared property strategies and were using some tax benefits as a hook to get you aboard and saying they were all volenteers that were successful from the whole process.... When I questioned how they actually lived off the increased capital gains without having someone to go to owrk to pay for it all.... they quickly changed the subject and ended the call. Hence I did not even bother going along to see them as they did not have any other strategies other than negative gearing. Why Rent? Rent 2 own! Mortgage Hunter [3784 Posts] Originally posted by Kiwi-Fulla: All I can say is do your own due diligence, check and double check the numbers. I don't know what they are teaching now but it was all about negatively gearing your portfolio in 2002 when we purchased our IP. I would not buy thru them again but that is a personal choice. Our focus has changed since then and now we are actively looking for more CF positive investments. The properties they sell are above market value that is how they make their money. They are for real and don't really pressure you into anything it is just another way of buying property. Good luck. Ros I agree, I called them a few months ago (to see what they were about) and all I got was they were using all negatively geared property strategies and were using some tax benefits as a hook to get you aboard and saying they were all volenteers that were successful from the whole process.... When I questioned how they actually lived off the increased capital gains without having someone to go to owrk to pay for it all.... they quickly changed the subject and ended the call. Hence I did not even bother going along to see them as they did not have any other strategies other than negative gearing. Why Rent? Rent 2 own! You know that a couple of people have made some money through negative gearing? Simon Macks Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser. Kiwi-Fulla [371 Posts] Wow ... Have they??! I call it hte buy and hope strategy .... just my opinion and no offence to all you successful Neg Gearers out there I can't see the logic in throwing money at something ... then when I go to buy another one the figures look worse .. .and then the 3rd one ... the lenders say "Sorry Sir you have servicability issues due to being overstretched" ... also what if you lose your job ..... = Storm Coming... just a matter of time. I am happy to help those out that are negatively geared and are not enjoying the "strapped to the grindstone" feeling. The ones that are successfull can probably afford to have some things go wrong ... however I would not suggest it to a new starter (unless there are adicted to gambling).. Why Rent? Rent 2 own! |
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