Has anyone heard of or had experience with the above group ,the startup guy was John Fitzgerald .
I went to one of their seminars recently just to see what they had to say .
They do encourage again putting down minimal deposits, can borrow again from some banks again 95% of value ,which I think is a little dangerous still at present . encouraging to go for houses only ,and especially those around Melbourne Sydney , Brisbane , for quicker growth reasons . I had mentioned commercial property , and they said no, houses are what they really push for and especially new houses to get depreciation on . And apparently a variation form can be filed with tax dept to get depreciation deductions rebated monthly or weekly to top up returns on property so to speak ,it can be used there and then instead of waiting till June each year.Regards from Perth WA .
All of the above is pretty standard stuff really… We advise clients of the same thing, don't charge for it however a point of difference for us is following the mining booms throughout the Surat & Bowen basins. John has made his fortune through property i am led to believe and does it extremely well, not much can go wrong with this advice if you want a safe investment.
I have a copy of a prospectus of Custodian Land where John is the CEO. Not to sell you a property but to become an investor on their development in Sunbury Victoria. All I can say is they seem to have used or partnered with quality consultants.
Just to be clear, I am not associated with or involved in this project. I simply use the prospectus as reference for valuation and development info.
Thanks folks, I may shift this topic to another spot see if any further comments .
Went to their seminar last year, attended a small group session at their office and was turned off when I found out how they work.
Basically 'Custodian Wealthbuilders' is just a marketing thing to get business. They're pretty much a developer. They buy a massive chunk of land, divide it up and sell house and land packages to their clients. They build at wholesale and sell to you at retail. The only benefit is they take on the risk from you (eg. if builder goes bankrupt/whatever they pay for it) and you pay a big fat premium for that.
I have just been for a meeting with them and yes they make their money from resale of property and encourage house /land deals ,the new houses giving depreciation advantages . They will pay 75% of rent lost if not built on time or if the tenant not found in time will pay 75% of the rent lost for the period .Their fee is 3% of purchase price of 1st property and 2% for them thereafter for each . they apparently do a lot of research for due diligence before of course to protect themselves as well for the parcel of land location etc .
Their idea of diversified portfolios is having houses in different states of course according to the current economic climates in each ,to gain full advantage of capital growths as they occur .which is quite normal .they don't advise to touch commercial property at all . They are very heavily into using highest amount of equity available to keep compounding the property buy ups ,all the way till the end .
Using mortgage insurance and going for 90% borrowings . so there is the risky bits .
I have so far not been pressured in any way to join ,although 2 company people were present whilst discussing how they operate . So need to decide if this is for me or not , I think it is mainly for people who are time poor or are not inclined to find properties themselves . They do encourage to go over and look at the property on offer , and have regular meetings with clients
for guidanceHi slowachiever,
I think, to a degree, you’ve found the answer to your question.
Take care.
Angel
Flick me a message. I would be glad to share with you the ins and outs of how the industry works. There is never an obligation to do anything and you will at least have clarity in your decision.
Thanks for all the comments , and yes Angel, I thought I would share the findings after my meeting them separate from the seminar . I was a little concerned at 1st and thought I better check with others 1st . It all depends how hands on one wants others to be in journey to the goal .
I am going to see Destiny today and see what they have on offer .Then of course there is always Steve's mentoring team , but which all is based in Melbourne and I am in Perth , so would require travel to get involved ,if I am away with work cannot attend the weekend workshops .
Also Custodian Wealthbuilders are into a bit of using negative gearing for tax , which is not really a good thing either having to top up the difference for repayments ,I already have one which is this way I am slowly getting rent up on it to market value over a long period , a bit each year .
Thanks .
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