HELP! Being lured toward “Real Estate Mastery – EmpowerNet”

So let me get this right;

you pay them $5K per year for them to find you deals through developers that they know? How generous of them. Why not approach the developers directly. The 'closed deal' line is BS.
Then, you get the "right" to buy the blocks for $100 -$200 per lot after paying them $5K?? Again; how generous.
Then, at settlement you hope the land has appreciated, so you then drawn down some equity to pay the future loan repayments, thus capitalising the interest on the loan so it costs you nothing to hold ithe land? But once you make a draw down on the equity, you then have to start paying interest on that draw down. Basically, you are not paying anything off the loan and the interest is simply tacked onto the loan and the loan increases. What if the land doesn't increase in value by settlement? What if they are charging you more for the block than it is really worth in the first place?

This smells.

You are being charged a lot of money to buy land that you can simply do yourself for free by going to the local real estate agents and asking what they have for sale and save the $5k. Every developer will also have their land lots advertised with all the local agents.

You shouldn't be charged money for the 'right' to buy the land they find for you; especially after you cough up $5k.

The legals and stamp duty amount to around 6% of the purchase price typically. Do you think they are going to give you this for free? No; it is built into the cost of the land.

There are 2 things you need to do here;
1. Run a mile.
2. Run another mile.

But seriously; look at what the average price of a block of land costs in that immediate area, and also look at what the cost of house and land packages are going for in the area right now. This is as easy as an hour on the phone talking to local agents, or spend a couple of afternoons driving around researching the values.

Don't be betting on a cap gain in 18 months with their deals; this is gambling. You need to do a really in-depth due diligence to verify whether there is a likelihood of a good cap gain occuring in that area in that time frame. In most cases, these developer's deals are price loaded, so when settlement rolls around, your cap growth doesn't materialise as the price you paid for the land in the first place was too high. You may even find that the land is worth less than what you paid for it; especially if we get a few more interest rate rises over the next 12 months and everyone puts their cheque books away.

These sorts of companies rely on people who can't be bothered to do the due diligence. Being lazy is expensive. If you want to be a successful investor, YOU need to do this work, take control of your future and make sure your investing is safe.

One last thing; ask the 'consultant if you can provide your own valuation on the land , and your own legals before signing any contracts. Their response should be interesting.

I would avoid this, do your own deals.

probably worth reporting to jenman.com.au