I guess you believe everything you read.
I would ask if they are ‘NET’ millionaires or just control a million dollars worth of over-priced, negatively geared property as offered by The Investors Club.
More importantly, I would ask for the individuals names or the writers of the article to verify the facts. Sounds like a well structured advertisement to me or Albany locals are easily led sheep who do not frequent these or other forums where the truth about The Investors Club is often revealed.
I am yet to hear anyone who has actually dealt with them speak positively of them or refer them to friends unless they obtain financial benefit from referring.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi Rob
They’re talking about you!!
On the weekend a mate of mine said he had been to an Investors Club ‘do’ and someone read out your posts from this site. Wow!!
Apparently, the reply was a bit rude, something along the lines of he (you) is just a broke mortgage broker who has never invested successfully in his life and has to save up to catch a bus.
Not very complimentary, for sure, but at least you have got into some heads, mate.
Go for it!!
Cheers
LEO
I just returned from an investors club meeting in East Pert tonight. Whatever perception one may have about how dodgy they may or may not be. I was just looking at their strategy. It’s a slow strategy and not for me but it should work. And you can do it yourself.
1. Buy a property.
2. Rent it out (usually ends up being negatively geared)
3. Wait till it goes up in price.
4. Use the equity as a deposit on the next one and the next one.
5. When you have about 1.25 mil in equity, set up a line of credit against the capital growth (average 9%PA)
6. Spend only half of the capital growth using the equity line of credit.
7. Do the same the next year and use the line of credit to pay for the interest on the year before.
8. The property capital growth will exceed your spending of the borrowings.I have a friend (Many conversations start like this) whom was going to buy off the plan, but did a valuation himself and realised the property was overpriced and was put off, but he never bought anything. He kicked himself 3 years later. He said “If I’d just bought anything back then, even if it was overpriced, I would have made enough to buy what I really wanted now…”
I suppose the lesson is this.
Keep your surplus cash and income going into real estate because even the worst deals are better than sticking it in the bank.
The 10K over valuation of the investors club deals are probably just the price you pay for being lazy and not researching.
That same friend of mine also said this
“My dad bought several properties. He bought every one of them in the worst place, at the worst time, for the worst price at that time. He basically screwed everything up that you could screw up. And he is still a millionaire today and doesn’t have to work”
Hi Leo,
Get your friend to forward this on to them…
I am certainly not broke (nor am I rich) and have caught a bus 10 times in the last ten years (for 2 weeks after back surgery in 2003 when I was not allowed to drive). I own four cars (nothing flash) and a great little 250 CC motorbike!
Mortgage Broking is more of a hobby to me than anything else. My family has had businesses operating for more than 30 years (of which I am involved) and I have my own businesses both online and off-line (unrelated to finance).
Although times are tough at the moment and cashflow issues are being restructured, like most investors, I cannot see any chance of me going broke in the near future. I have three properties in WA, one in Southern NSW (unncumbered), one on the Central Coast of NSW and half ownership in two Sydney properties. I also have various investments in shares both in Australia and the USA.
Although I am not a millionaire (the way I determine it due to high gearing), I do ok for myself and am quite content with what I have. I am certain that when I can be bothered to put more effort into investing in physical assets, I will accumulate a lot more very quickly.
My current focus is indirect property investment through LPTs etc. and establishing various online passive income streams that will continue well into the future if current results are anything to go by.
Unlike ‘The Investors Club’, I actually do some research before I open my big mouth. This just goes to show how their due dilligence is lacking.
Let them know that if they want to know more about me, all they have to do is ask. My email and phone number are freely available all over this site.
It is certainly good to know that they have got the message. Maybe I should forward some Kleenex!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by scissors:1. Buy a property.
2. Rent it out (usually ends up being negatively geared)
3. Wait till it goes up in price.
4. Use the equity as a deposit on the next one and the next one.
5. When you have about 1.25 mil in equity, set up a line of credit against the capital growth (average 9%PA)
6. Spend only half of the capital growth using the equity line of credit.
7. Do the same the next year and use the line of credit to pay for the interest on the year before.
8. The property capital growth will exceed your spending of the borrowings.Please keep my details handy to let me know the date of the mortgagee sale!!!
I have a friend (Many conversations start like this) whom was going to buy off the plan, but did a valuation himself and realised the property was overpriced and was put off, but he never bought anything. He kicked himself 3 years later. He said “If I’d just bought anything back then, even if it was overpriced, I would have made enough to buy what I really wanted now…”I also have a friend (believe it or not), who bought a unit in Maroubra in 1990 for $400,000. They tried to sell in 2001 and did not receive a single offer over $400,000. They still own the unit.
Not all property increases in value even in a boom. This is especially the case with off-the-plan property in high density areas like that which The Investors Club offers. I think they should be renamed ‘The Mugs Club’!
Keep your surplus cash and income going into real estate because even the worst deals are better than sticking it in the bank.5.4% gross guaranteed is a lot better than negative returns plus having to pay out of your own pocket. Please do some due dilligence because if this is what you learnt at ‘The Mugs Club’, you are destined for disaster!
The 10K over valuation of the investors club deals are probably just the price you pay for being lazy and not researching.Rubbish… nearly all off-the-plan agents sell the same property ‘The Mugs Club’ offer for 10K less. They don’t have to pay the vendor, the boss, your ‘sponsor’ and high marketing costs like ‘The Mugs Club’. At least you know that other agents are selling rubbish. Calling your business a ‘Club’ certainly helps convince people you are on their side.
The ‘Agent’ works for the ‘Vendor’. Remember that!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksPS: They seem to be spending a lot of time and money marketing in WA lately. Everyone is making money there at the moment. They are certainly not doing anything special!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by The Mortgage Adviser:I guess you believe everything you read.
Should i believe you then Rob? [biggrin]
Your avatar is apt, i cant decide which side is the real you. You have definitely given the majority of us some food for thought and I think your posts are great as well as informative; many thanks for your input. I do however have a question..what is your preferred strategy then as an investor (what advice/strategy would you proffer to an aspiring property investor)?
With your knowledge as a broker and property investor you must have some insights that would be of benefit to the majority.
Regards
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorNo need to believe what I write. Everyone can be wrong regarding their views. I just try to put an opposing view out there for those reading to scrutinise and consider to make a more informed or balanced decision.
I will not attempt to put forward any property strategy for Australia. I have made my decision to get out of Aus property all together. In fact, the only investment in Aus property I will be making in the future will be indirectly.
To me, liquidity is becoming of high importance to take advantage of various opportunities I usually miss out on by holding property directly. Of course, this strategy is definately not for the majority as it is higher risk.
Finally, for someone to say that a person does not know what they are talking about just because they do not own 100 properties or practice what they preach is ridiculous. There are not many out there who do practice what they preach as their risk profile is very different to those they are speaking with.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by The Mortgage Adviser:Finally, for someone to say that a person does not know what they are talking about just because they do not own 100 properties or practice what they preach is ridiculous. There are not many out there who do practice what they preach as their risk profile is very different to those they are speaking with.
I agree.. how are things going with your Internet Cafe?
OK..looking for our next project
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorNeil Jenman agrees with The Mortgage Advisor.
Re Internet Cafe,
Still having issues sourcing the right equipment. I need flat screen monitors with built in RCA ports.
Re Jenma, a lot of his words are sounding very familiar.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
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