“The Investors Club”

We also had some dealings with the club but only bought 2 thru them. Lot of hype ans many ego’s thru out their system and we did okay in the investment side of things but we felt we could do it better ourselves as we were then more in control. kevin Young decent guy but team going down the ladder not to good as they always felt that they knew best and you knew nothing. When we picked an area that we felt would go and give us the return we were after they reckon i had flipped well yes but that happened years ago! We are very happy with what we got and to this day they havent gone into that area but i think that is because agent’s dont like dealing with them. Have noticed on their website they have changed tact on what they now go after compared to a few years ago so would be careful. like all forums such as this one you pick the eye’s out of all and apply to suit your needs as they all have something to offer. I to have read the book and like most others found it fantastic but wheather we do some of those things only time will tell.

Make sure you do your own home work on the TRUE value of the property before purchasing. Remember the Investors club and clubs alike will only ever show you what they have to offer. I do know they charge well above what Real Estate Agents charge for selling them, and don’t believe them when they say ‘because we are buying direct from the developer we are getting a cut price deal’ The developers want a price whether it comes from Kevin Young or an Agent. If you go through an agent you will probably find you can get yourself a better deal. Why do you think the developers sell through Kenvin Young and the likes.

Yes people have got some good GC over the last few years, tell me someone who has’nt. What about the people who bought through him in 97 and then had to sell 2/3 years after purchase, ask them what they got for their property! I have herd of some big loses 10k +. Buy and hold is a sure way to get GC if you buy and hold, but remember the what if!

I beleive that borrowing your equity to live on can be a good idea. You must have many properties and only borrow a low percentage of the growth tho. As long as your portfolio is growing faster than you are spending it, it should be ok. I would rather see someone do this than selling a property to access the funds.

BTW, I know someone doing this at the moment with one property! Not good.

Terryw
Discover Home Loans
North Sydney
[email protected]

If you go to the Newstext site and type in Kevin Young, you will find several articles which will give you a true picture of the Investors Club.

Also, if you go to the ASIC site, you should be able to get some info.

Here is the start of just one article –

THE Investors Club, a lucrative business run by a Gold Coast real estate mogul who travels Australia signing up Mum and Dad investors for multiple properties, is under “intensive investigation” by both ASIC and the Office of Fair Trading. Investigations across the country have so far revealed that the business may be in breach of several laws including the Crimes Act,

Obviously, for copyright reasons, it would not be right to post the entire article here. Pay your dollar and read it all for yourself on the Newstext site.

I hope this is of some help to you.

Cheers

Bec

Dear LLJack

Sounds to me like you didn’t spend your dollar and check the Newstext site. As for ASIC, you may recall that Henry Kaye claimed ASIC had given him a clean bill of health. And then – kapow!

As a client of the Investors Club, you have a psychological need to justify and protect your decision. I understand.

All I am saying is that anyone thinking of dealing with Mr Young needs to know a bit more about how his so-called “club” operates. For you, it’s too late; for others there’s still time.

Here’s a prediction for the New Year. Mr Young and his “club” are going to be more widely known this year. Take the hint those of you who are not involved with Mr Young.

Stay safe.

Bec

Fibejebe, as long as you do your own DD, and everything still stacks up on the property – including rentals, and what other units are selling for, then you should be fine.

That’s what it boils down to I guess, and if it all works then your ‘spotters’ get their fee. I do think it’s a tad high for the Investors Club, (and don’t really appreciate their non discolusre) but if the price is still good, and the developer is willing to pay them that much, then that’s really his choice.

Cheers
Mel

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Guess it happens in any deal tho doesn’t it? … 10 of us paid 290K to 330K each and the 4 developers paid 150K each and got the pick of the uints. We subsidised them over 600K (150K each.) Between the 10 of us, that’s 60K added to our initial price isn’t it?

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Perhaps this is a. why they develop, or b. the way they wish to take their profit, rather than cash in hand. I think there were some excellent tax advantages doing it this way (although I believe the rules have now been changed so they would be taxed on the place as if they sold it anyway). So your prices were fair, and they used their profits to acquire ‘cheaper’ units for themselves.

You’re right about the same happening in most deals. I guess it just grated that they can’t be upfront, and say, we get $x so that we can provide all these services to our club members, and the Support Members and the Branch Managers etc. all get $x from each deal that they introduce – a ‘paypacket’ for their time for want of a better description.

It reminded me a bit much of the two tier marketing scam that I got hit with in the early 90’s – to see how much the ‘introducer’ got at settlement was staggering also.

If you look at it closely, I reckon they would make handsome money from their ‘in house’ mortgage business, they get the ‘commission’ from the developers, what sort of ‘kickback’ comes from their ‘preferred’ PMs?, QSs, Solicitors etc.?

Cheers
Mel