Property Investment Groups???????

Hi AJMJ

Beware!!!  We got involved with a company about 3 years ago who "added value" to properties, i.e., renovate, etc.  For a fee they would source the property for you, outline their "add value" plans and commence the project.  The idea was for a relatively quick turnaround from purchase to sale.  This company was recommended to us from a very good (now) ex-friend.  To cut a long story short we ended up losing about $92,000 through poor due dilligence from our part.  We had regular meetings with the company and everything they said was that the project was going to plan, bla bla.

We, like you thought that, if they were doing all the work for a fee or commission – what could possibly go wrong??  ALOT can go wrong.  One of the problems was that GREED and lack of INTEGRITY got in the way of some of the Directors and some of the "on-the-side" deals they were doing brought the company down – big time!!

I certainly don't want to tarnish every company with the same brush – however, that was our experience.

Lessons learnt – 

– If  you get involved in something like this do your own due dilligence before signing any contracts,
– Enlist the services of your Solicitor to take a look at any contracts between you and the company,
– Find out the structure of the company, i.e., trust, etc (Your Solicitor can conduct this search or you can)
– Don't trust everything they say – research yourself,

Finally, treat it like a business (it's your money), get invloved, request updates, request up front projected figures, get a Written Guarantee on a minumum profit (priceless if you can get it).  Don't sit back and think just because you are paying them that everything is fine.

Good luck

You can buy one of my properties.  I will cobble up some newspaper clippings and a sales pitch to prove how good the area is and even extrapolate how continued 20% growth (which we can show has happened in the last few years) will make you a millionnaire soon.

The prices will be non negotiable because they are already too cheap as a special deal to you.

I will even line up a tame, valuer, lender and solicitor for you to use so you don't get independent advice and I get a kickback from them.  I can even fly you up and refund the $49 ticket after you buy!

All this work we do for you will save you a few weekends work and only costs you $10K too much now and poor capital growth into the future as I flog stock that locals wont touch because they know the freeway will be going in past the back fence later on.

Sounds good?

Seriously – you will do better on your own and you may even enjoy the learning process.  I have heard so many horror stories from people buying through these groups – groups which exist solely to make the directors money. 

If you want to ask questions then do it here, plenty of enthusiats willing to share their knowledge.

Good luck mate

Try this.

Get to know your local area very very well.  Search the real estate websites and visit properties each weekend.  Try to see about 20-50.  The more the better.

Pretty soon you will be able to pick what offers you the most potential at the best price.

Make offers.  No vendor expects to be paid his full asking price.

There is no secret place in another state where all the deals are gold.  Why buy something unseen that the local investors aren't buying??

There is no easy ticket either – you need to put the time in.

All the best mate