I have been receiving a newsletter from ESC or Entreprenuers Success Centre which is part of a website call Richmastery.com.au.
These guys appear to source some pretty impressive +ve cashflow deals (along the same criteria that Steve Mc advocates) and charge [?]a finder’s fee.
Has anyone bought property thru this service? I’d like to know if the quoted figures stack up to the reality and if they are genuine deals or
I have been receiving a newsletter from ESC or Entreprenuers Success Centre which is part of a website call Richmastery.com.au.These guys appear to source some pretty impressive +ve cashflow deals (along the same criteria that Steve Mc advocates) and charge [?]a finder’s fee.
Has anyone bought property thru this service? I’d like to know if the quoted figures stack up to the reality and if they are genuine deals or
I have been sent information about deals on ESC and spoken to them. The deals seem to be ok but I have not purchased any.
You would of course do you due diligence like you would with any deal and proceed only after that.
The finders fee is fair enough after all they did find the deal and have paid for an option on it. If the deal stacks up where is the problem?
Cheersi’ve found their numbers are not quite correct. ie they only put down one weeks vacancy a year, so you would have to check that. also legal fees.
i havent bought from them, but i do have their software and my numbers come out a bit lower than theirs. also they are neg geared positive cashflow. if you have the software you can do it yourself.Yes Shaun is right numbers are not correct and even they don’t know them self what are the numbers if you ring them. Due diligence is very much important with their deals. I have done ESC three days seminar.
Cheers
[
]
PropertyGuRuG’day Chambo…
Be very careful in buying property from any “Marketing Group”. I will even go so far as to suggest you avoid them completely.
They are a marketing machine with a lot of people to be paid and almost without exception you will be paying, maybe 20% more than the property is worth. If you must do biz with them, get your own “Independent Valuation”.
They may appear to be cf+ with tax write offs etc but in reality, usually an overpriced deal that will take you years to get enough CG to bring it up to it’s true worth.
Do your own legwork…that’s how you learn.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]Bottom line from what everyone else is saying is don’t rule them out but own due diligence needed like any other deal which might be looked at.
G’day Chambo….
NO… the bottom line is they will eat you alive!
Stay well away from them.
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]No I don’t agree with Bill if you do your due diligence then their some deals are not bad.
All the property you buy you can do subject to valuation and they don’t mind doing that.
Bill do you have any experience with ESC?
Cheers
[
]
PropertyGuRuI think a lot of people finding deals for ESC are people who have done their seminars. At least in NZ I know this to be true. A lot of people don’t have the $$$ to get started and finding deals for a commission is a good way to get started. I was recently in NZ looking at properties and we looked at a waterfront property in a city which could either be a pretty rough buy and hold, or a renovation for capital gain – it was returning about 12-15 percent but capital gain has been strong in that area, actually ‘going nuts’.
While we were looking, another person came to look at the property and my friend got talking to him – he was looking for properties for ESC.he’d certainly identified a good deal, as we had.
Phil Jones talks about the propertyfinding service at his one night events which i’ve been to, which started as asking seminar graduates to notify him of deals they found but didn’t want and if they bought them, they’d get a finder’s fee. some people asked him ‘hey pass on the deals you don’t want to us, because we don’t have time to look either!’ so they did. Phil said often he checks the website to see what deals are available at a particular time, to the public, and sometimes he sees an incredible deal that’s been on the net for 9 days, and says to his partner ‘hey this seems a good deal, why aren’t we buying this?’ and grabs it himself. He showed one property as an example. they are really strict with the guidelines – they offer two types of properties – colour coded purple or green depending which (cashflow or capital gain)- and the capital gain ones have to be in areas which have shown more than 10 percent growth P/A. for 10 years, five years, and one year. He says that some people have ‘spotted’ 90 properties before one has been accepted for the web!
I actually use the site as a barometer of how I’m doing, because all my deals have to be better than what they’ve got on offer, otherwise I’d be better off to buy on of theirs!
Once i was looking in NZ and found a property in a town close to another which was going nuts, for 33K. Then i got the email from ESC which offered an identical looking property for 29K or so.
So i tested it out – rang up the agent and asked if the 33K property was still available. no, it’s under contract, she said.So, i think it’s legit. they just negotiated it and put a contract on it. Also obviously looked through it in person.
if you’d bought that property for 29K, not only would it have been CF+ve for at least 12-15 percent, but the value would probably have gone up …??? 41K which is the lowest priced property on the market in that town right now – i just checked – and like i said that town is 20-30k away from a city which is one of the fastest growing in the country if not the fastest.So it depends on your time. If you have the time to look for your own deals, do so, if not, buy one through ESC and leverage your time that way.
however, they don’t do builder’s report for you
or anything so you’d have to do that yourself. Also you often don’t have much time to get the deals.Yes, i do know someone who bought a property through them and he was very happy with it. All the stuff I’m writing here is to do with ESC in NZ. i don’t know if ECS in Aus is just franchised out or what, I.e. I don’t know if it’s run to the same standard as the NZ branch which of course is overseen by Phil and david themselves, and they obviously know the market there really well.
the only other thing i wanted to add was that there’s nothing intrinsically wrong with finding properties for others and charging a fee. i’m thinking of doing it myself actually, as I find many more deals than i can purchase myself!
However if I was a person wanting to use a propertyfinder service, i think it’s quite reassuring to buy from a reputable company.
I certainly wouldn’t go around calling them scammers.
cheers-
MiniWARNING
Phil Jones and his mob are becoming notorious in NZ.
As Bill says, “They will eat you alive.” They are the Kiwi version of Henry Kaye.
Many of their “great deals” are “horror deals”. They are barely out of nappies. Mark my words – they are going to fall down and take lots of people with them.
This is all I am going to say about them, at this stage.
Stick with Bill’s advice. PLEASE!!
Bec
hi all
while i agree with bill that it is better to learn and do it yourself, some of there deals seam ok, so why write them off.
Rebecca you must be confused, as ESC isn’t into property development and find deals with existing houses i know because i get there deals emailed to me (never taken up one just get it for interest). Henry Kaye is just bad news.
there deals appear ok? why do you say they are horror deals and i don’t get the comment about being out of Nappies are you refering to there age? being young is never a reason to dismiss someone they are very switched on young guys.
westanI was very close to finalisisng a deal through them. It turned out to be an overpriced load of **** I realised that really, they are only good for NZ and outside of that (partic those WA deals), they havent got a clue what the property is like, they havent done any background on it and I find that as a novice (Ive only purchased 4 properties so far, 5th on the way) I do a lot better with local Buyers advocates where I dont have the time and they know their areas intimately.
I say to you, do not bother. Find another advocacy source and you will be happier. In fact, Im happy to recommend more than one, depending on your state. If you like, drop me a line at [email protected]
Cheers
I suppose sometimes you just gotta spell it out.
ESC are dodgy, very dodgy. With age comes wisdom, although when these toddlers get older they’ll be just as dodgy. By “nappies” I was referring both to their age and their experience. They paddled out into the booming real estate surf a couple of years ago and, like many of today’s “experts” they have only ever known rising prices.
As for my explanation of “horror deals” here is the meaning spelled out. The deals they offer are often NOT below the real value.
One of the biggest signs of a dodgy property operator is anyone who offers to find/source/sell a property “below valuation” and then tells you that you can put it for sale again immediately for its real value. Ha ha. What a joke.
Many of the most experienced, wise and respected property people in NZ know all too well what these people are like – DODGY. That’s D-O-D-G-Y.
Now, having been told, go ahead and deal with them if you choose. Some people need to lose money in order to become wise. Me, I prefer to learn from observing the mistakes of others. It’s a lot cheaper.
Bec
Well said Bec and i agree
“Now, having been told, go ahead and deal with them if you choose. Some people need to lose money in order to become wise. Me, I prefer to learn from observing the mistakes of others. It’s a lot cheaper.
Bec”
Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
I was very close to finalisisng a deal through them. It turned out to be an overpriced load of **** I realised that really, they are only good for NZ and outside of that (partic those WA deals), they havent got a clue what the property is like, they havent done any background on it and I find that as a novice (Ive only purchased 4 properties so far, 5th on the way) I do a lot better with local Buyers advocates where I dont have the time and they know their areas intimately.I say to you, do not bother. Find another advocacy source and you will be happier. In fact, Im happy to recommend more than one, depending on your state. If you like, drop me a line at [email protected]
Cheers
WARNINGPhil Jones and his mob are becoming notorious in NZ.
As Bill says, “They will eat you alive.” They are the Kiwi version of Henry Kaye.
Many of their “great deals” are “horror deals”. They are barely out of nappies. Mark my words – they are going to fall down and take lots of people with them.
This is all I am going to say about them, at this stage.
Stick with Bill’s advice. PLEASE!!
Bec
We need to be careful from whom we take advice. What are they doing with their money? How long have they been doing it? Have they traded through a few property cycles?
Over the last few years everyone things they know about property. That’s because you could buy almost any property, go away on holidays and come back and it was worth more.
A lot of the people giving advice today have been trading or investing in property for 3 or 4 years.
As someone who has been investing for 30 years and owns a very substantial portfolio and is still very active in the market today, I have seen it all before. Different names, different people but the scenario is the same.
Take advice from someone who is out of “nappies”. There are not many of them around giving advice and what they may teach you is not as enticing as what the new age of gurus may say.
It may not be what you want to hear
You may not be able to be a millionaire by Xmas. It may take 10 – 15 years.
You may not be able to buy 130 properties, maybe only 3 and own them in your own name.
As others have said educate yourself so you can make your own decisions. There is still great value in books and seminars from the right people. It’s just hard to know who the right people are
Michael Yardney
Metropole Properties
http://www.metropole.com.auExcellent advice, Michael. While no one wants to come down hard on someone just because they’re young, there is a big difference between new kids who think they know it all and those who have seen it all.
Some friends sent me the ESC video and we all sat down and wathced it the other night. It was puerile and pathetic.
Apparently this Phil Jones has been compared to Henry Kaye. Forget it, Henry Kaye, as bad as he may have been, had brains.
Bec
Hi Rebecca,
I’m not for or against ESC. Give us some FACTS on why, In your books they are so dodgy !!! Or is it just your OPINION ?? I have researched afew of their deals in my own area in NZ. While I have not purchased any, they aren’t too bad either (I do know this market as have brought 9 properties in the last 12 months)Lazyboy
Hi Rebecca,
I’m not for or against ESC. Give us some FACTS on why, In your books they are so dodgy !!! Or is it just your OPINION ?? I have researched afew of their deals in my own area in NZ. While I have not purchased any, they aren’t too bad either (I do know this market as have brought 9 properties in the last 12 months)Lazyboy
I am agree with Lazy Boy anyone got any Facts I saw one deal from them In Oz couple of months ago 120k rent return 315 perweek. I am not saying we can’t find ourself these deals but every second day some one start new tread here asking “HE/SHE CAN”T FIND POSITIVE FLOW PROPERTY”
BTW I found couple of today with one for 75k rent 180 week.[
]Cheers
[
]
PropertyGuRu
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
