I am a first time investor and I am looking for a investment company that will handle the whole procedure for me. Buying, renting, finance etc. I have been approached by a couple of companies but something doesn't feel right. If someone could recommended a company that I could look into that they have used?
Hi Latham,
Welcome to the forum.
mate quick background- my girlfriend and I were in same position few years ago. A one stop shop company was recommended to us. We bought 2 Off The Plan properties from them 400k each with 2year time frame to settlement. Their in house finance guy promised we would get loans over the line and how strong rental market was in suburb we were being sold and thus selling the negative gearing or in real world terms losing money every week strategy.
Thinking these guys were professionals thought they knew what they were talking about and didn't think anything of it. 6 months prior to settlement our situations changed and couldn't go ahead, this info was giving to these quote 'Property Experts' prior to purchase and they assured us they would look after us if our situation changed. Once docs we signed they wiped their hands of us-
Long story short we got out but cost us 20k and lawyer fees, etc.
This company was receiving 40k and upwards backend profit for each apartment and property sold via developer, their finance guy had been falsifying numbers to get loan approvals across the line and rental figures were grossly overstated.
Any one stop shop company selling property I would be very wary off- I know many people that have been played in the same way.
We now have a couple of houses and are in the process of picking up two more- my advice is do all your own research- Understand how this game works so you are in control should anything faulter.
Paying above market value for a negative geared property which you are highly leveraged against is the quickest way to sink the ship before she's even sailed….
There are many good minds on this forum- ask questions and read as much as you can.
The successful guys in the investment world do not use a one stop shop- if you are trying to emulate; that should tell you something!
All the best!
Connolly wrote:Any one stop shop company selling property I would be very wary off- I know many people that have been played in the same way.
We now have a couple of houses and are in the process of picking up two more- my advice is do all your own research- Understand how this game works so you are in control should anything faulter.
Paying above market value for a negative geared property which you are highly leveraged against is the quickest way to sink the ship before she's even sailed….
There are many good minds on this forum- ask questions and read as much as you can.
The successful guys in the investment world do not use a one stop shop- if you are trying to emulate; that should tell you something!
All the best!
Great post Connolly and Latham you would do well to take heed the advice given. I have seen it work, that is a one stop shop (except the finance which I did) but more often than not it has ended in disappointment and pain.
If you do go to a property spruiker/marketer I would strongly advise that you DO NOT use their in house finance person. Use someone who posts on this forum as Connolly suggested as they will guide you away from the sharks.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Hi Latham
Personally I'd avoid the one stop shops. They generally spruik off the plan (new development stock) at a huge markup. Most are glorified REA's with kickbacks being thrown around everywhere – and all at the cost of the buyer.
If you're time poor – than appoint a good buyers agent in the area that you're looking to buy. Also get a good finance person and accountant on board.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Do your own research and don't just follow someone elses. Your first purchase is oh so important because it will either anchor you or set up very well for subsequent purchases.
This forum is full of useful information. Also set yourself up with a network of like minded people and see what has and hasn't worked for them.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Mark Coburn wrote:TheFinanceShop wrote:Some here will say teach yourself and do you own research, I just don't agree.
It's a bit like saying: teach yourself and set up your own finance, teach yourself and set up your own trust structure. You don't know what you don't know. When you started your career, your employer didn't say "sit down there and teach yourself, then go out and borrow 1/2 a million dollars over 30 years, and then we will see how good you are". No they (or someone else) trained you, apprenticed you, or you started in the mailroom. The mailroom is how you learn on the job, where the worst you can do wrong is put the stamps on upside down. Some people don't ever leave the mailroom, while others go on to run the company.
Good input Mark but feel to add that you at least need to get your self to a place to being able to identify sound advice from bad advice and that will require a level of self education to decipher the advice given.
You could "get lucky" and choose/come across good sound advisors or in many cases get thrown to the wolves. Just to big of a gamble to take the risk without some level of prior knowledge before jumping in.
Granted it is a chicken and the egg syndrome but better to have some knowledge base as opposed to none or little. A good start is to scourer forums like these and others, attend seminars on property (with out getting sucked into the hype), read recommended books on property, listen to podcast and finding mentors in the various related professions.
Only the individual can decide when he/she is ready but to jump in completely green is leaving your self open to abuse imo.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Why do you want to go a one-stop-shop?
You need to be aware they tend to take a cut on almost everything – Land, House Build, Mortgage etc – which means they have a vested interest in selling you the property that makes them the most money.
If you really need help you would be better off paying for the help of a Buyer's Agent who can find the property for you and use a Mortgage Broker (there are many great ones on this forum) to help with your financing.
As has been previously said the first investment is probably the most important one so you want to make a good decision.
Spend some time learning and doing research yourself.
Hope that helps
Ryan McLean | On Property
http://onproperty.com.au
Email MeTheFinanceShop wrote:Your first purchase is oh so important because it will either anchor you or set up very well for subsequeShahin is right. The first purchase is a portfolio maker or a portfolio breaker. Most investors don't get past their Home + 1 investment property, and 90% don't get past Home + 2 investment properties for that reason. We see stalled investors, up to their necks in strife, investments that need to be untangled, refinanced and tidied up.
As a Property Investment Advisors and Buyer's Agents we see this all the time, and we start out with each client, by getting them onto our "on-boarding" process, the first part of this lets us see how the existing assets are setup, so we don't make things worst. We don't charge to give you our opinion, or to point you to some good professional advice.
Some here will say teach yourself and do you own research, I just don't agree.
It's a bit like saying: teach yourself and set up your own finance, teach yourself and set up your own trust structure. You don't know what you don't know. When you started your career, your employer didn't say "sit down there and teach yourself, then go out and borrow 1/2 a million dollars over 30 years, and then we will see how good you are". No they (or someone else) trained you, apprenticed you, or you started in the mailroom. The mailroom is how you learn on the job, where the worst you can do wrong is put the stamps on upside down. Some people don't ever leave the mailroom, while others go on to run the company.
In my opinion; Property investment is at it's most risky when you only have 1-2 properties. Once you have 3 or more, your income (rents) is coming off a broader base, your capital growth is coming of a wider geographical area, and with a bit of good planning you will have a few months mortgage payments sitting in your off set account, waiting for a rainy day.
A buyer's agent will sit down with you, create an investment plan that is tailored to you, then work with you as your advocate all the way through.
Let me know if I can help.
Modernity Investing
Email Me
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