JDL Strategies

Thanks for your post ‘still learning’. I fear that you may have placed far too much trust in these people.The recommendation to purchase 4 properties straight up, is a areal concern for me. It sounds like you are borrowing to your maximum capacity and that leaves no safety net. This is typical advice from many marketing companies who don’t really care what happens to the client after they collect their sales commissions.

As I pointed out before you have to look closely at how they are being paid. Clearly Julio wants to avoid answering this question as I suspect that by doing so it will disclose a serious conflict of interest!

Please come back and let us know how you go. If Julio has any brains he will ensure that it will go smoothly for you, but I’m not holding my breath! I have heard far too many of these stories about uneducated and unsuspecting property investors buying poorly performing investment properties through Property Marketing Companies disguising themselves as some sort of buyers agent. The truth is often not discovered until it is much too late and many Mum and Dad investors have been burnt.

LOL APOLO. You are either a spruiker yourself or one of those seminar junkies who has been trained to parrot all their their lines.

Your name wouldn’t happen to be Julio would it? Sorry to be so suspicious but who gives a company such a glowing testimonial having only seen the CEO of the company speak a few times at seminars? If you haven’t had any ‘connection’ to JDL you are hardly qualified to give an opinion as to their level of ethics or success are you?

Goodness me APOLO. You seem to be making a lot of assumptions don’t you. Thanks for your offer but I really don’t need your help or referral to your guru. I really made two points in my last post:

1) That you sound very much like a spruiker (or committed student of one) yourself as you parrot all the same lines they use.
2) That you are hardly qualified to comment on JDL as you admit knowing very little about them.

I can tell you now that I have not been hurt badly at all, but I know of hundreds of Mum and Dad investors who have been very badly hurt by these spruikers and marketing companies. So much so that they no longer have the mental or physical capacity to get back up and start again. Some have committed suicide. Meanwhile the spruikers all say “Oh well, it’s your own fault. You shouldn’t have believed everything I said and instead done your own due diligence”. Perhaps so, but this is hardly an excuse for blatantly misleading people in order to bring in another sales commission.

Because you asked, I retired financially a number of years ago in my mid 40s. However I still work by choice just as I’m sure you do. But please don’t suggest that just because everything has gone well for you, that it must have for everyone else or they are stupid. That is the arrogant narcissistic attitude, commonly displayed by spruikers when their promises and predictions don’t materialize and they turn to ‘damage control mode’.

Peter J wrote:

I recently had JDL Strategies come to my house and put together a plan to invest. I found them very professional and upfront. Having attended a seminar I disagree that they hide their fees. They were very upfront as I had to sign a MOU (Memorandum of Understanding). They did not represent themselves as a buyers advocate! They put together a strategy that suited my individual needs based on my individual financial situation. I chose to proceed with them and i fully understand there is a fee for their service. They are now finding a property for me through their network of wholesale builders. The fees that a builder incurs to build, hold and sell a property are quite high. I believe JDL negotiate this fee down substantially and in stead of discounting the property to me the end buyer JDL require the builder to add extras to the property increasing its value and quality. They are a business and like anyone else have to get paid for their service. If the builder was selling the property on the market a real estate agent would be paid to do so, so I don’t see anything wrong with the builder paying JDL to do the same thing. the builder pays to sell the property, I pay for a finance strategy!

Hi Peter, thanks for your input and welcome to this fantastic forum. I have no views on JDL, however, can you confirm that you donot work for JDL? We look forward to more posts from you.

Thank you

The Fox wrote:

The question is do you also get paid sales commissions by the sellers/ developers for the properties you sell?

My preliminary strategy report says:
JDL Strategies may negotiate 5%-8% of the purchase price of the property as commissions.

Therefore, to answer the question, yes. For a $400,000 property JDL could earn anywhere between $20,000 and $32,000. So what makes anyone think JDL has the incentive to sell the property to any lesser value to the client?

Colin Rice wrote:

That equals a property spruiker in my eyes.

I don’t see deception in JDL’s model though. They promote a bulk buying strategy in which all the clients are in it together. They acts as an intermediate entity bringing investors and developers together so they get paid from both parties.

These are my observations with them so far:

Appears to be targeted towards those without basic knowledge of investing. Advertised as something ‘magical’ which may deter prospective investors who has a basic knowledge or logical reasoning;
Aggressive marketing model – asking referrals and contacting the referrals frequently;
$8700 for the initial property and $3500 for any ongoing properties;
Bulk buying strategy:
Buy # of properties for # of clients in a new development through a developer affiliated with JDL;
Bulk buy involves cost savings for each client;
You are in it sharing risks and benefits with the rest of the client;
5% to 8% commission from builder/developer per property;
Does not classify itself as a buyer’s agent;

• This reply was modified 6 years, 10 months ago by  mcored.
• This reply was modified 6 years, 10 months ago by  mcored.

5% to 8% commission from builder/developer per property;

200% to 300% of what a Real Estate Agent gets for selling a property? Sheesh !! Nice work if you can get it (and can find someone else who wants to pay for the excesses!!) A spruiker for sure.

Benny

I have to agree with everything you had to say Colin.

It seems to me that mcord has listed all the reasons that he should be avoiding JDL above, but still seems to cling to the idea that he should support them! To me that just spells out the dangers when spruikers target naive and inexperienced property investors. It is far too easy for them to get sucked in to the marketing propaganda, that to the inexperienced, all seems to make good sense!

Some people just have to learn by making their own mistakes I guess!

anyone had any dealings with JDL since 2016?
Have they improved or are they worse?

Fintrack wrote:

anyone had any dealings with JDL since 2016?
Have they improved or are they worse?

I went and heard the pitch last yr as a friend invited me. As far as companies that recommend new House and Land stock go there are worse ones out there. The physical quality of the house will still depend on who builds it. However, the trouble of valuations coming in under the purchase price and very low growth in the first 3 yrs is the main issue with a generic H+L strategy in new estates. My comments are about the model and the strategy not a debate about the personal ethics of a company.

I pointed these things out plus the fee structure to my friend and he did not proceed.

Buying established housing in high demand areas (with no oversupply of land around) is the way to generate growth faster.

Adding value through renovations or small development can also speed things up from an equity growth standpoint.

If you must go new, I suggest a split contract, buy your own block of land and build your own home to ensure full control of the process. If you want better cash flow, build a dual occupancy or dual income house product.

Either way choose your locations and your builders carefully there are lots of lemons out there.