www.cashflowcapital.com.au

I think everyone is hanging back waiting for someone to answer.

My 2c worth;

I looked at the site and I get nervous when I see a house advertised for $280 purchase price with a $580 per week rent. If it was that good why don’t they buy it themselves?

These sort of crowds are good for people who are:
a) time poor (too busy)
b) too lazy to do the searching themselves
c) to scared to go out and find a property because they think they don’t know enough.
d) all of the above.

I guess they could be useful for doing all the work for you to find a property. The trade-off is that you will save time and pay them for theirs (a few grand I suspect).

The question is do you think you could find the same properties and save yourself a few grand in fees. If you spent one full working week searching for properties and then found one, is that worth your time – would you earn more in one week of normal work to cover their fee?

The other factor to consider is where are the properties? There are cashflow properties around, but many are in very dodgy areas that I wouldn’t invest in. Are you able to find out through this crowd what these areas are like? I suspect that this info would be unavailable, which means you have to do all your own legwork to research the area to make sure it is viable. You may be buying a property with great rent return which is almost impossible to rent on a consistent basis, tenants from hell etc.

And finally, by letting them do all the work for you you are giving up much of the control, and your knowledge is not increasing as you are not actively involved in the process. I think investing without knowledge is dangerous to your financial health.

I’m not saying they’re bad; just keep your eyes and brain open.

Cheers,
Marc.
[email protected]

“we get sent lemons; it’s up to us to make lemonade”

I recently signed up to get info from them myself. you do pay quite a hefty fee as they take 2% of the purchase price and $500 application fee. <edited by admin due to incorrect facts>