I would be interested to hear of any experiences people have had with an outfit called the investor club.
Has anyone bought through them or been to their meetings ?
Hi benson,
I haven’t heard of the “investor club”, but I’ve heard of other property investment clubs and groups, and have even been to many of their seminars.
I found the seminars quite useful, because I learnt various bits and pieces here and there at different seminars. But I had to take it all with a pinch of salt sometimes, especially when some of them tried to sell me properties. I don’t think that there’s anything inherently wrong with that, but I prefer to do my own research, to make sure that I’m not paying too much for the property.
I’m not bagging investment clubs, but I’m just saying be careful – one of my friends was developing a largish townhouse strata complex last year, and he was approached by one of these investment clubs, who wanted to sell some of the townhouses for him. They demanded a commission of nearly 10%, and justified it by saying they had a ready source of buyers (ie the investors in their club). And they sold the townhouses to their investors at the full price. I’ve been to some of their seminars, and they tell you that due to their “buying power” and experience, they are able to negotiate a good price for club members. I’m not going to state any conclusions – you put two and two together.
All I’m saying is – these people may be legitimate, but be careful, and be skeptical, until you’re satisfied that it’s all above-board.
2 questions I’ve learnt to ask – are they getting any commission on the sale of the property, and how much? You might get an annoyed response to this, but I think it’s a fair question to ask. Stockbrokers, mortgage brokers and financial planners all have to tell you exactly how much commission they are making.
Hope that helps
Cheers
MHi Benson. If it is the Invesors Club run by Kevin Young, they have been around for quite a while. Went to one of their seminars once where from memory they encourage you to buy so many properties (7-10 I think) over a certain timeframe (10 yrs?) then when the properties have gained value you draw down on the equity to fund your lifestyle. Sorry my details are a bit scratchy but it was something like that.Whether it is or isnt the same group, just have a think before committing yourself to anything.
Regards
MartyHi Benson,
Have a look at http://www.theinvestorsclub.com.au – run by Kevin Young. I know a lady who has purchased about 6 properties thru them and she thinks it’s great. From what I have heard tho, I would be a trifle wary. I reckon it’s for people who want others to control their property investments. I be questioning everyhting and then again.
CheersHi Benson
About 4 or so years ago I purchased a property in Qld through (Kevin Youngs) investors club. This was at a time when I was fairly new to property investing. It attracted me because I was time poor and liked the idea of having someone research properties for me. The points that they talked about looking for re purchasing a property (close to transport etc) appeared sound.
I still receive their monthly newsletter but really it is just an advertising brochure promoting how good they are. (Bit boring really). They use to pride themselves on providing education to people about investing but I haven’t seen much of that in a long time. And yes they do promote buying 7 properties in 7 yrs and retiring. This strategy I believe has a few weaknesses, particularly given the property they sold to me was negatively geared. I like the property I’ve bought though it hasn’t had any where near the growth I would have hoped for given that they were suppose to have the expertise and were advising me. In some sense they are just a realestate agent.
I guess as with most things there are positives and negatives it just requires picking through it all and doing due diligence. Wished I knew back then what I know now.
BB [
]Hi Betty,
Sorry to hear you didn’t get the growth you were initially expecting.If you dont mind could you tell us where they put you, what type of property and how much ? Also how far from the CBD. If they put you into Brisbane 4 years ago. I would have assumed you would have picked up some growth recently [?]
I would like to know more about what they have been advocating.[
]MJK
They appear to advocate cash positive investments, and bulk buying power and reduced purchasing overheads. In theory it sounds good. In practice, I have no idea. The quality of property also I am not clear on.
When I purchased they weren’t necessarily promoting positive cash flow. But definantly talking about the power of bulk purchase. In fact of the 3 investment properties I own it is the only negatively geared one.
I purchased a town house down on the gold coast. Now don’t groan. It isn’t on the strip. It is in a suburb called Benowa. It is close to schools transport, shops etc. It is about 13yrs old now and is in a well maintained complex. I probably get 2-3 letters from agents a week asking me if I want to sell. Speaking to the property managers who live on site they were telling me about one of the town houses that sold there recently and I was pretty surprised at how low a price it went for.
BB
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