All Topics / General Property / JDL Strategies

Viewing 19 posts - 21 through 39 (of 39 total)
  • Profile photo of The FoxThe Fox
    Participant
    @the-fox
    Join Date: 2012
    Post Count: 25

    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.

    Profile photo of APOLOAPOLO
    Participant
    @apolo
    Join Date: 2008
    Post Count: 33

    Hi Guys ,years back I had a call from a marketing company they came to my house and explained the whole process of investing ,at first I was trying to be bit smart Ass ,but the guy who came to my place he told me one think that got stuck to my head ,he said you can be a smart Ass but at the end of the day investing in right property will move you closure to healthy retirement .I followed him for few years and now I have a healthy portfolio ,if you get into the needy greedy of what the real-estate Agents are making in commission ,then you will not be able to do any thing and that is call procrastination. I never let that word get into my world .The reason People talk about JDL because Julio has made millions through property ,if you want to know how he did it,then talk to him don’t let him down he is a human too .As there is a saying “if you cant beat the progress then join him” ,you may be there one day if you get the right mind set .He has created a lot of wealthy people ,there may be a few who may have fallen down ,its not his mistake ,get up and go for it again its no use crying over split milk ,I have also lost 250 to 300K in my wealth building process ,if I had given up then the I wouldn’t have seen my fist millions .
    I am happy to talk more ,property investment is not a one size fits all ,I know this from my own experience.
    By the way I don’t have any connection with JDL but I have seen Julio speak few times in seminars .and I look up to people like him ,may be that’s why I have the right mind set .
    Cheers
    Happy Investing .

    Profile photo of The FoxThe Fox
    Participant
    @the-fox
    Join Date: 2012
    Post Count: 25

    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?

    Profile photo of APOLOAPOLO
    Participant
    @apolo
    Join Date: 2008
    Post Count: 33

    Hi The Fox ,let me ask you one thing ,are you financially retired or you still have 9 to 5 job , I am just telling my success in life .I am not a spruiker nor I am Julio. I am just a normal person and I retired at 40 .I was coached by another company (not JDL).If you are not there yet I am happy to lend you my coach ,but looks like you have been hurt badly .so take a deep breath and forget about he past and look forward .that’s what I did when I lost a lot of money in my journey to financial freedom .Good luck

    Profile photo of The FoxThe Fox
    Participant
    @the-fox
    Join Date: 2012
    Post Count: 25

    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’.

    Profile photo of Peter JPeter J
    Participant
    @peterjacko
    Join Date: 2014
    Post Count: 1

    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!

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    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

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Knowledge2investingKnowledge2investing
    Participant
    @investin2property
    Join Date: 2014
    Post Count: 2

    Hello all

    Thank you so much for starting this discussion. My partner almost signed up with this company until I stumbled onto this forum which has changed his mind altogether. I was suspicious from the very beginning about JDL strategies, but now reading through the different forum about this company is confirmed my suspicion.

    Is anyone able to advise a good buyers agent in Australia?

    Profile photo of mcoredmcored
    Participant
    @mcored
    Join Date: 2015
    Post Count: 3

    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?

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    JDL Strategies may negotiate 5%-8% of the purchase price of the property as commissions.

    That equals a property spruiker in my eyes. Also the one stop shop thing can work well if all parties involved are highly ethical and experienced and how would a novice investor know this? I suspect that is their target market – novice investors!!!

    I got a call from them a few years back and happened to mention I am a mortgage broker. The lady responded by saying “we are looking for a broker to work with”. I went and met Julio and a few members of his team to explore further. He wanted me to come and work for them but the offer he made sounded like I would bean employee of JDL Strategies and I could not write my own deals. He wanted me to give up everything I had worked for to come and make him richer so it was very one sided!

    He went on about how he uses hypnosis to get people “on-board”, which freaked me out a bit as I just rely on honesty, integrity and sound advice to “get people on-board”. I went to one of his presentations and it was entertaining and he had some good points (like most of these seminar presenters you will pick up a nugget or 2) but I decided it was not for me.

    I did get several calls from their marketing dept. to become a referral partner but then that would make me a spruiker of sorts myself just to get a commission. I declined their offers and very glad I did so.

    • This reply was modified 3 years, 8 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of mcoredmcored
    Participant
    @mcored
    Join Date: 2015
    Post Count: 3

    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 3 years, 8 months ago by Profile photo of mcored mcored.
    • This reply was modified 3 years, 8 months ago by Profile photo of mcored mcored.
    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    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;

    That ^^^^^ just confirmed they are in the spruiker category :) – http://www.thepropertycouch.com.au/how-to-spot-a-property-spruiker/

    • This reply was modified 3 years, 8 months ago by Profile photo of Colin Rice Colin Rice.
    • This reply was modified 3 years, 8 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    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

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Yep and a common tactic is to cross collaterlise the PPOR with the new IP purchase as this will absorb the valuation shortfall which is essentially the spruikers profit.

    As novices are the target market they will have know idea what the valautions are and are just so happy that “there loans have been approved”.

    Banks, brokers and property developers / spruikers are all in bed together on this and is akin to legalised theft.

    Always, always keep your securities stand alone and always always ask to see the valuation reports that the spruikers broker will have on file. If they are with held then get your own independent one done. Problem is many of these properties are purchased OTP (off the plan) and the contracts are unconditional from the get go so you are locked in. Works ok if the property goes up in value but will cane you if the property decreases in value once completed and double whammy if you overpaid in the first place.

    One stop shops sound good and can work well if all parties are ethical and operate with integrity but if they dont then what and how would you actually know if you are a novice???

    I have advised clients to walk away from these types of deals due to valuation shortfalls. Fortunately they didn’t use the spruikers broker or they would have been sucker-punched.

    You make and loose money in real estate when you purchase!

    • This reply was modified 3 years, 8 months ago by Profile photo of Colin Rice Colin Rice.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of The FoxThe Fox
    Participant
    @the-fox
    Join Date: 2012
    Post Count: 25

    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!

    Profile photo of mcoredmcored
    Participant
    @mcored
    Join Date: 2015
    Post Count: 3

    @The Fox, it just means I understand the risks. I do not consider them as Value for Money (VfM) because based on my comparison, I find VfM elsewhere. I am just saying, another time-limited investor would consider the return is enough for the investment made and decide to go with them.

    Profile photo of FintrackFintrack
    Participant
    @fintrack
    Join Date: 2013
    Post Count: 15

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

    Profile photo of McNoMcNo
    Participant
    @mcno
    Join Date: 2019
    Post Count: 0

    Don’t do it, they’re all about ego and sales, not the client.

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 330

    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.

    BuyersAgent | Precium
    http://www.precium.com.au
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    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au

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