Another too is,

Lets say your new to the property investment game, you might have a property, but you might not exactly know the ins and outs of an IP work . A $240k property that is 1 title with 4 units, to a sydney sider/resident, will think this is the deal of a life time, as they know in Sydney prices for anything near or like this could be over the $1 million dollar mark to purchase in Sydney.

To this person, this would looke like a deal of a life time, and a deal this good to them, they dont have time to think, but to sign the contract and make sure its secured before someone else purchases it.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Rugbyfan,

dont forget, he is selling the property at a markup price to the investor to begin with. A 50k mark up price.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Pices133,

Thats what the contract stipulate, some how he has been able to do it. The only way you can manage the property is to wait till your 5 year contract with him is up and then you are able to rent it out via PM.

But for many people, because he guarantees 24k each year, not many or naive people will aruge with this.

For V.O. to manage all these properties is easy, remember he is the landlord to 1500 properties.

1500 x $10 pw rent = $15,000 pw week he makes doing nothing.

He has a direct billing service setup that deducts money from the pensioners account and would only need to pay some one or 2 people $500 a week each to manage these properties.

On the trip, he tells all about what i just mention in this post, to everyone, he is up front on how much money he makes in acting as a land lord. And how he makes his $15k a week doing not much at all, and how he provides such a great service.

Its just sad how many people can fall for this marketing and just want to sign anything they can get there hands on.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Kay,

For a $240k property that has 4 units under one title.

There is a guaranteed $24k return each year.

$24k shared by 4 tentants renting it out is $115 pw, you will get from each tenant. V.O. has also added on top of that rent a $10 a week fee to each tenant on the lease.

So the actual rent the tenant/pensioner will pay is $125 per week.

On every rental he makes $10 on top of it.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Ok, V.O. is very upfront and tells people that he has put a huge markup, but guarantees the rent for the next 5 years.

Yes people are crazy, they are signing deals on the bus, with no solicitor and in the middle of nowhere, were your mobile fone has no reception or phone coverage.

People are just going into the deals with no legal or third party advice or check ups, they were signing up like hot cakes on sale.

The real losers are the investor and the pensioner, wno is also locked in.

Its sad, but true, but this was happening right there infront of us.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

ok, guys

V.O. buys a property for say $200k or any property but puts a real hefty markup on the resale of it to you (you as the investor), not just one property, but he has managed to buy and control 1500 properties. At the expense of an investor, who is locked into 5 by 5 year leases, which gives him total control over your property.

Here is an example of how the deal works, (all his deals are block of units by the way.)

V.O. Purchases property at $190k, he sells to investor at $240k. He makes a $50k profit. (with this deal comes many strings attached.) He promise to also landlord your property with a 10% GY return of the purchase price. If you dont let him landlord your property, he will not sell the property to you at all. He also locks you into a 5 year contract, with no choice to pull out, or you pay hefty penalites, puttin you back in that predictiment, that you have to let him landlord your property for you. (you can also lock in a contract for 25 years, now for a novice investor, this is not good for them, yet so many fall for this.)

$240k property @ $24k GYR = 10% GYR

With this figure and at currnet interest rates, and having to be locked in for 5 years, this property is not +ve cashflow, yet it is +vely geared. (Many novice investors, may not know the difference between +ve cash flow and +ve geared). This property is infact more -ve or far from neutral.

On all properties, he offers management, he will do all maintenances service for a small fee of $10 per each seperate unit or property rented.

Remember he sells blocks of units (1 title x 4 units). So infact he is getting $40 for this such deal .

Each year due to CPI this has an about 3% inflation across the economy, thus meaning because he rents to pensioners, the government increases there pension by about 3% every year.

So lets go back to this $240k property he sells you.

$240k property @ $24k GYR = 10% GYR.

Deal looks great, but on paper, its shonky let me keep explaining. All these incentives he gives you at a $10 fee and then locks you in at 5 years. Something is Wrong.

I will keep explaining in next post.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Pisces133 and Guys,

Oh dont worry i will tell tomorrow, first i gotta call some people about the trip… lol… yes we had an arguement with some of the host and people who were organising and reading out what deals they have, the deals are actually really good for first time investors, but to be honest i feel some deals were actually good on the returns but caculation on an IRR for five years time is bit of a worry. (long story but to make it short, your are locked in to a 5 by 5 lease, but if you break your lease there are big penalties.) I will explain more tomorrow.

Though the food was really good, im serious they fed us like 4 times a day, and provided great accomodation, though i am a bit disappointed, that there are lots of people who do view this forum and are only guests on here.

It honestly didnt take long to meet or find out who or which of these persons or people who are just fence sitters and just read everything and reap the benefits of what other people post and talk about on here.

Though i will admit, it didnt take long to work out how V.O. was doing the deals and how he was promising such returns, i will admit that, for the novice investor, he is making big $$$ off them, (now you can sorta guess why an arguement arosed and many questions that i put forward, could not be answered or were sided tracked with a quick change of subject).

Though, i will honestly admit in 2 days, it did really open my eyes and see, who you can and can not trust, and what you have to becareful about posting such good places of interest.

Though a short note, for everyone, just a heed of carefulness, you dont know who is on their home computer right now viewing and reading such topices and taking advantage of someones enquiry or question of help.

This has just really disappointed me and i know many people on here, will now be a little bit more aware and will be, more careful in what they post on this forum. To be honest, its great for people to help each other on here, but someone could be taking advantage of your general helpful post/knowledge or information you try to give some one who needs.

For everyone, i didnt buy any property at all, but i will post more about the trip here later on.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

By the way, i dont know im gonna survive no property investing forum for 36 hours..

[8]… noooooo

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million