Is it legal to advertise for MP’s in the local classifieds?? Eg. Seeking Investors. 12% P.A
Hi,
You should get legal opinion on this, but I’d imagine the offer is no unless you have a prospectus.
There are laws that regulate how public offers are made and I’d imagine that putting an offer in a paper certainly be classified as a public offer.
This raises a very interetsing issue. I have noticed that John Burley and Dolf De Roos have been looking for investing partners lately. They are doing this via their websites.
It seems to me that as self-proclaimed sophisticated investors they are on very dangerous ground. After the High Court ruling re: Joe Gutnick saying that it is where the online information is read (as opposed to published) that counts, making offers to Australian investors from overseas locations will still need to conform with Australian Law.
I haven’t seen anyone talking about a prospectus confirming to Corporations Law requirements in the offers.
Only please send money to be part of a massive jackpot of property profits.
Hmmmmm – steady as she goes is my advice.
Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Insider & Steve,
Interesting that you mentioned the Kiyosaki & DeRoos websites re money partners. They’re also e-mailing the information, baiting prospective investors, then linking them to their website for further info.
Ulimately, these may be good deals, but difficult to research (ie, international companies & property) & do the normal due diligence. They’re internal company structures, business location might make things difficult to chase down if things go wrong. Due diligence is not only about property & tenents, but also companies.
Michael [
]Hi all,
Interestingly enough, I had much the same thoughts as expressed here about the Burley offers. Although he did not seem to actively pursue Australian investors, (because it was on an international forum), london-to-a-brick there were Aussies on the forum who went for it. Good investment?…ah well, there’s the rub!
As we are contantly reminded if we study REI, PEOPLE are the profits NOT bricks and sticks. The major risk in any investment is the PERSON behind it. If Mr Burley is considered with integrity by the market place, people will go into the investment – if not, well… ;o)
As for the issue of it being a public offer – I am reminded of Tony Bartons comment regarding ASIC rules not applying to investments secured by Real Estate – I haven’t followed up on it, but I am curious if it does/does not apply to “Money Partners” (provided they hold equity in the properties). Certainly I know that ASIC holds no purvue over anyone scammed in 2-tier scams, etc…according to Neil Jenman the answer is usually “Sorry. Bad luck, I’m afraid” – so I guess the short answer is…
…maybe! ;o)
Jason
interesting reading, because I think the big guys always win. If they are already extremely wealthy by their books, seminars,investments why try and get us, to invest with them. What is their agenda?
We just attended a breafree event, trying to convince us to start a “business” via an american company “noueavou riche”, to flog tapes, books etc at $3500 per package and earn a huge commission out of it etc etc. It sounded to us very “ammway” like. I am also left wondering why Dolf De Roos would bother endorsing this, given that he has already produced great books etc.
In addition, his books, investment materials and software can be brought virtually anywhere at the fraction of the above cost.
I was left wondering also about the legal implications in all this. Needless to say, the nouv.riche owners(I think the name says it all), are a smiley couple, she of course,blonde and attractive, already very successful and wealthy.
Of course we were reassured, that they have the interest of us ordinary investors (or as they say in Australia mums and dads) at heart, and would really like to contribute to our financial wellbeing. It was just so altruistic, it was incredible. Unfortunately our sceptical mind decided otherwise and we walked out.
I think this forum, a few books, much cheaper and ethical seminars remain the best form of education.
Finally don’t expect to get rich overnight and as mentioned, due diligence all the way.I’m a little surprised to see Mr Burley’s name thrown into this discussion. He is a man of magnificent integrity, and I can’t see how he would be expected to know about the Joe Gutnick case unless he spends a great deal of time following internet case law, and also can’t see how this possibly makes him less of a “sophisticated investor”.
I also don’t consider the Joe Gutnick case to necessarily be linked to looking for investors internationally. The case was in regards to libel, and the result was that negative comments posted on a US website used by Australians led to the case being heard in an Australian court. That’s all at this stage, any further implications are yet to be seen.
I have no comment either way on the other people you are discussing, but I think the way John has conducted himself for many years deserves the respect of not being dragged into this issue with sarcastic and attacking comments.
Personally, I never publicly advertise for investors due to the reasons that have been discussed (the need for a prospectus for public offers to 20 or more people). However, it is a subjective issue with varying opinions so I would suggest discussing it with a solicitor and making your own judgement call based on the level of risk you are comfortable with.
Regards,
Marcus.Marcus,
Thanks for your post.
If you have interpreted anything I’ve said to cast doubt on Burley’s integrity then I assure you this was not the intention.
However, being an Australian site and dealing with Australian issues, I feel it is relevant to point out that an offer made on an international website calling for (directly or indirectly) Australian investors is treading on thin ice. Fact.
Re: your post about Joe Gutnick. You are right to say it was about defamation, however the High Court addressed the issue about publication on the ‘net too.
Final word – this site is not about mud slinging or cutting people off at the knees. It is designed to be a forum to discuss issues constructively.
Sincerely,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey Marcus,
I hope that you didn’t find my posting about Mr Burley offensive…certainly no offence was intended.
I was merely ruminating on an idea – that MANY people who enter investments based on the reputation and/or personality of the teacher/investor/offerer rather than closely examining the real merits and/or downsides of the issue tend to get burnt.
I certainly felt that in this case, perhaps, an element of “get in quickly before its all gone” was present, not giving adequate time to consider the merits, putting huge faith & responsibility on Mr Burley’s shoulders…and if things (heavens forbid) should go wrong…who’ll get the blame?
My personal (and expensive) experience suggests that when people make investment decisions (as I am guilty of in the past) based on such ‘subjective’ criteria rather than ‘objective’ criteria (or at least a good mix of both), the losing party (if there is one) tends to forget their own responsibility in the decision…
In short, relying on the personality and reputation of the offerer without clear due diligence of our own can, eventually, get us into trouble. It is purely based in laziness and/or a lack of self-responsibility.
Here endeth the sermon! ;o)
Kindest Regards
Jason
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