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Sorry guys; this is all about image versus reality. I used to think that the JLF was fair dinkum until I experienced the reality of project involvement. All projects of which I am aware were badly selected and ineptly managed with disastrous prospects (up to 50% loss of capital). The promotions might meet the requirements of corporate law but they are seriously misleading. If you must get involved, make sure of your due diligence; otherwise you are setting up for some big financial 'hurt'. There are hundreds of current JLF investors who sorely regret to having trusted the integrity of the Custodian brand. Many are losing very large sums and these were mature, experienced people. The golden boy, philanthropic image sells well but it conceals a ruthless, business approach which seems totally careless of how the fortune is created and who gets hurt in the process. In my experience, the only winners come from the JLF stables.
Well expressed, John 1970. It all looks and sounds great…….until you do the due diligence (which I failed, in part). Sound advice in 'Seven Steps to Wisdom' but it stops there. These guys are sharks and happily consume any funding directed their way. The worst aspect of their operations is the property syndicate investment 'opportunity'. Wholly unsecured and, regardless of the investment period promoted in their printed material, has no specific tenure and can be extended for years beyond the planned end date. My advice to anyone who reads this post – stay clear and avoid any involvement. There are many burnt shareholders out there who would attest to this sentiment.
'Ram' made a valid observation in that Custodian WealthBuilders (JLF) does provide OK training and advice in relation to developing a property portfolio. Then again, so does the Investors Club. As for cash investments in property syndicates and purchasing of JLF housing stock, RUN LIKE HELL! I am one of hundreds of 'shareholders' who would love to see the principals (especially JF) of certain development projects taken to court, then run out of town on a rail. Unfortunately, corporation law and state legislation allows such entities to practise their particular brand of legal ripoffs while eliminating any form of accountability through disassociated company entities..
Danny, obviously nothing eventuated because, in 2014, there is still no recourse available to victims of spruiker activity. My 2013 letter to the Qld Attorney General on this subject still remains unanswered. So much for regulatory legislation!!
Re my post about Custodian Land syndicates (spruikers): While engaged in disputation with the CEO about unauthorised retention of capital beyond the understood investment term, arrogant treatment of investors plus failure to respond to requests for project information; the most provocative statement made by the Custodian representative was "We work for you – we have your best interests at heart" or words to that effect (stated while stonewalling our requests for explanations). Comforting, isn't it!
G'day Henry and others; I certainly don't have a list but I can comment on two Queensland companies. I personally own four investment properties but foolishly invested cash in a property syndicate to 'spread the eggs'. Worst idea ever! To the best of my knowledge, both The Investors Club and Custodian Wealth Builders provide sound investment training (ie principles and strategies). I have strong reservations about purchasing stock through their medium although acquisition by this means will suit some who can afford the oncosts and want to avoid many of the hassles attendant to personal involvement. I personally prefer to apply the sound principles espoused in books by Margaret Lomas, John Fitzgerald etc. However, there is often a difference between what one writes and what one practises. My greatest concerns lie in the 'Razzmatazz' approach adopted by Custodian Wealthbuilders (John Fitzgerald) who certainly put on a good show but are subject to the usual downsides when one peeks under the skirts. Avoid at all costs any cash investments into Custodian property syndicates! While some may make a return in very good times, they are fraught with hidden problems and the bulk of any returns is sucked out by the principals very early regardless of the success of the project. READ THE PROSPECTUS SMALL PRINT THOROUGHLY AND YOU WILL NEVER SIGN UP!! Seminars and workshops provide hype and all sorts of verbal/loosely written assurances. The bottom line: – totally-unsecured capital, indefinite tenure (a registered company until wound up) and absolutely no investor control over the management and execution of the project. When it all goes bad, the unsecured creditor waits at the end of the line while everybody (and I mean EVERYBODY ELSE) consumes the residue left by CWB. As an example, CWB/ Custodian Land project at Cunningham Rise, Goodna was touted as projecting a 45% return over a 31 month term – reasonable at face value. The facts: the management was incompetent and hugely overspent with sales slowing while keeping the shareholders in the dark. Then all capital (other than a 17% initial return) is retained until at least June 2016, at which time investors might expect a further 29% of original capital at current estimates. Projected result? Instead of a 3 year safe investment – Projected 54% capital loss after six years and zero dividend. Of course, JLF walk away with millions. Their Victorian project is not much better. While the company will claim (correctly) that the buyer should beware; this ignores slick marketing, very loose initial verbal/written assurances and cleverly-hidden, vital information all designed to misrepresent or mislead. The bottom line is that Custodian and others would never attract investment capita lfor their developments if they promulgated the true contract conditions in clear, everyday language. John Fitzgerald is marketed as a clean-cut, whiz kid out to save the world and his disciples bolster that image. Don't be fooled! These guys are ruthless, rip extravagant fees and commissions out of every project, outsource project servicing to their advantage and are happy to gull keen investors into socking hard-earned superannuation into their self-serving projects. They are legally secure and happy to retire behind the Corporations Act when called to account. ASIC probably can't touch them. That's why they are millionaires. Stick with property and use their experience and knowledge by all means – but never invest with these sharks. I trusted them …never again! If you feel that this is sour grapes, ask yourself if you really want to consort with men and women lacking integrity and who are happy to hazard mums' and dads' savings without any safeguards, while furthering their own gross interests from behind the protection of legally-disassociated entities and corporate law. THERE ARE NO PROTECTIONS IN LAW AGAINST THESE TYPE OF OPERATIONS.
