i've been to a TIC seminar/meeting as well. I was introduced to the TIC from a friend who is a member. He had bought about 2-3 properties in QLD with them.
After the seminar, I asked them how they actually got paid (as they don't relly disclose that very well in the meeting), to which they responded that they do receive some sort of commission/kickback.
Personally, I preferred to invest on my own.I have had some "dealings" with TIC. Basically if you're happy to get advice from mums and dads rather than an expert then that's up to you.
They are known through the industry as the Investors Cult, as most people who are involved with them can get somewhat brainwashed and their one size fits all policy really isn't the right way to go. The fact too that their 'Club" model is in the shape of a Pyramid……!
There are MANY holes in their strategies and I speak from experience that there are MANY "Members" that aren't happy with their results.I have bought two properties through TIC. Both transactions went very smoothly and both properties have enjoyed a very low vacancy rate. The QLD property has not performed to expectations and rent has been stagnant sincepurchase date, however the property manager seems to do a very good job and it is a no fuss investment. The west Perth property has been awesome. Have had it less than 18 months and rent went from 650/wk to 795/wk but WA property managers take a gouge plus some!
The 'support member' is paid a commission on the sale but they do seem to make a lot more effort than your average estate agent. As a lazy investor, I like the in depth property profile and generally low fuss transactions I have had with the club. I do have to wonder though about the overall goal of building up a large enough portfolio to live off the equity and as much as I love reducing my tax, I wouldn't mind a positive cash flow property now instead of in 5 years time!
I will probably buy a third property through TIC but I will always retain my own ideas, opinions and a 'safety cushion' rather than fully endorsing their 'plan'
are they still pushing a "living off equity" model?
I thought that this was unsustainable nowadays due to changes in regulations and laws that curtail the LOE model
Their model has always been unsustainable!
The idea that you can live off equity borrowed back from a Bank when you retire is rubbish.
"Hi Mr Bank, I'm 70 and want to borrow $500,000 from you to use to live off for the next 10 years"
If your sole income is rent, then a Bank will normally only lend you based on 50% of your rent received.
And seeing as you would need probably 20 properties with extremely good cash flow, it's just doesn't work.Never Never Sell! is their catch phrase. Most people will have no choice.
Never sell so it won’t be revealed how well (or not..) you have bought perhaps?
Yeah, most likely
Laury wrote:I have bought two properties through TIC. Both transactions went very smoothly and both properties have enjoyed a very low vacancy rate. The QLD property has not performed to expectations and rent has been stagnant sincepurchase date, however the property manager seems to do a very good job and it is a no fuss investment. The west Perth property has been awesome. Have had it less than 18 months and rent went from 650/wk to 795/wk but WA property managers take a gouge plus some!The 'support member' is paid a commission on the sale but they do seem to make a lot more effort than your average estate agent. As a lazy investor, I like the in depth property profile and generally low fuss transactions I have had with the club. I do have to wonder though about the overall goal of building up a large enough portfolio to live off the equity and as much as I love reducing my tax, I wouldn't mind a positive cash flow property now instead of in 5 years time!
I will probably buy a third property through TIC but I will always retain my own ideas, opinions and a 'safety cushion' rather than fully endorsing their 'plan'
Laury this is biased advice from myself of course. Have you considered an independent Buyers Agent if low fuss and lazy investment is an important criteria? For a fee that should be around 2% they will not only do all of the work for you but have no interest in pushing product where they are paid a commission of 6.6% or thereabouts, you have access to all property and not just newly built property that the developer can’t sell without a marketing margin paid on top.
As have mentioned on other threads about TIC please be very careful as this article explains. http://www.propertyobserver.com.au/residential/after-mediation-fails-investors-club-dispute-headed-for-court/2011122052917 I just can't understand how this could have happened judging by the figures quoted. I think that if the truth ever comes out about this Kirribilli Heights development in which no fewer than 12 TIC members were badly burnt, it's not going to look very good for TIC.
Slater and Gordon are a very well known and respected law firm. If they have even agreed to take the case on, I would imagine this is likely to get interesting! I see that Kevin Young referred to S & G (in another WA news article) as 'ambulance chasers'. That was a big call in in my opinion and showed real arrogance! Anyway, you be the judge but I think this story will be worth watching closely as it unfolds.
That article also says "valuation returned a much lower price as number of owners in the complex had units sold as mortgagee in possession when the financial crisis hit, bringing down prices for all the properties in the complex."
So how much of it was due to paying over market rates and how much due to drop in the market?
Keep us updated on the trial if you hear please.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I know this is now a very old post about The Investors Club, but it one of the first that comes up these days under a google search for anyone attempting to research or do their due diligence on this company and it's founder Kevin Young. For that reason I thought I would add a new post to it.
This story appeared on ABC TV very recently and I suggest that anyone researching The Investors Club watch it. For that matter I suggest that anyone researching any property marketing company or wealth spruiking company watch it. Although The Investors Club isn't actually mentioned, one has to consider if their business model isn't exactly as described in this story.
http://www.abc.net.au/news/2013-06-17/the-stampede-into-property-by-self-managed-super/4761308
Oh Terry, re your last comment about the trial. I discovered that what happened was Kevin Young was pushed to the court room steps and then wanted to settle out of court with all the usual confidentiality deeds attached so no-one can speak publicly about what really happened. He also insisted that the victims make a ridiculous public statement to say that TIC had always acted honestly in their dealings with them. This has become textbook stuff for Kevin Young.
The strategy is to drag the legal process out in an attempt to deep pocket the opponent, but if they eventually back you into a corner where you have to front up in the courtroom, quickly change tactics and agree to settle out of court and give them what they have been asking for all along. The advantage of this strategy is that in the first instance, most won't have deep enough pockets to continue paying their lawyers through the drawn out processes before the matter ever sees the inside of a courtroom. If they do, then they can be silenced before the matter is reported publicly. The complainants can be gagged about what really happened, and the reputation of the company and individuals concerned can be protected (or should I say, hidden from public view.) A settlement handled out of court in this way, can also have advantages to the accused when it comes to who pays the legal costs.
Kevin Young has become a master at manipulating the systems to his own advantage, making misleading public statements about the truth of these matters and playing bluff games. What I am saying here is be warned about what might be going on behind the scenes with these companies before deciding to do business with them. Like many of these marketing companies, very often all is not as it seems, especially for first time investors. They are also finding very efffective ways to hide any negative internet material about them. On that note, here's a tip: If you are searching on google and find that certain information has been blocked by google with a 'chilling effect' notice in it's place this is usually a bit warning flag that the company is seeking to hide information they don't want you to discover. Instead do the same search on BING and you should find it.
http://australianpropertyforum.com/topic/9041357/3/
This is a very interesting thread I found which relates to this topic.
Go and learn from them, but realise they earn $30,000 minimum on every home they sell paid from the developer or builder. Get the knowledge and then do it without them and save the $30,000
Bottom line is this. It’s better to spend a few thousand end get youself eduated. Do Steve’s apprenticeship or Results Mentoring.
Better to spend your money up front, in the opne, on coaching and teaching, rather than comission to sellers.I spent some time 10 years ago looking into it and didn’t move forward. I have since spent $10k plu son training and think I would have saved myself $100k+ had I done so earlier!
Cheers,
Dwight
Dwight
Cashflow Positive Investor
Not surprising really I suppose. ABC have just done a story on this fake club.
http://www.abc.net.au/7.30/content/2014/s4065976.htm
Where there is smoke there is fire and I think Kevin Young has a lot of spot fires to contend with lately as members discover the many ways they have been duped into buying overpriced and poorly performing properties through the club.
Hi there,
I’m having the same question you had previously in regard to the investor club / the property club.
Can you please share have you purchased any property through them. If yes, how was the experience.
Really appreciate your comment.Regards,
MosesHi there,
I’m having the same question you had previously in regard to the investor club / the property club.
Can you please share have you purchased any property through them. If yes, how was the experience.
Really appreciate your comment.
Regards,
Moses
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