I signed up with Cashflow Capital in October 2016. Their pricing structure was $1,000 to find a property, which amount would be deducted from the initial deposit.

I have to say they were up front with their pricing structure, and that they were being paid by the developer (I made sure I asked this).

Everything they showed me was in QLD, mostly in Ipswich area, but I ended up purchasing one in Hervey Bay. One thing that they do is set you up with their recommended lawyer, broker, accountant, etc. That is where the problems started:
Lawyer – gave a one page advice on the contract, and when I asked questions they refused to answer unless they got paid more. I eventually had to go with a NSW lawyer to complete the purchase. Never paid their lawyer
Broker – useless, useless, and did I mention useless. Still trying to fix the refinance they did to my PPOR, and never got a loan for the Hervey Bay property (luckily I had cash overseas which I am using to complete the purchase)
Accountant – the only one I can say did an ok job, but nothing special

So after paying the $1,000 in October 2016 the land deposit was paid in March 17, and settled in April 17. Then took 2 months before the building started. At this stage it looks like completion will be Nov/Dec 2017, more than 12 months, for something that was suppose to take 4-6 months.

I did all the research on the area (NOT a mining town), and research into the cashflow positive numbers, which look ok (talked to plenty of agents in the area re rent, etc.). Time will tell.

One thing to be very careful of is some of the “standard” numbers they use in their reports. For example, my report has an estimated yearly capital growth number of 5%. A couple of weeks ago (yes, 9 months after signing up – I know) I queried how they came up with that number. I was told that the national capital growth over the last 15 years averages to 5.3%, so they were conservative and used 5%. Let me say that again – the NATIONAL average is 5.3%. Not state, or region, or town, but national.

So I have paid the building deposit and have just been hit up for the first progress payment. One thing I have heard (but not been able to substantiate) is that their builder has not built some properties they were paid for. I’m signing up a real estate agent (NOT the one they recommend) this week, and will ask them to drive past and check that the work is progressing, before paying.

All in all it’s been an up-and-down ride with them, not sure I would use again or recommend, whilst still being hopefully that this cashflow positive property come off.

My thoughts for the future (as I am currently based on an overseas assignment) is to locate the property myself, then use a buyers agent (not Cashflow Capital) to negotiate, inspect, organise pest & building inspections, etc. For this they will typically charge me 1%