Ethics in Real Estate

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From: Anonymous


Hi! Apologies in advance for the anonymous posting, but I don't wanna get myself into trouble...

Just got home from a consumer seminar run by Neil Jenman of "Ethics in Real Estate" fame. I'm sure the more seasoned amongst us here would have heard of him, but this is for those who have not. Do yourself a favour & book for one of his free seminars when he speaks next, or visit www.jenman.com

Read his book about a year & a half ago, & I've learned the many tricks that agents play. However, his seminar has revealed much more. He talks about 2 tiered marketing, HE GIVES OUT NAMES OF THOSE INVOLVED! I thought he'd gotten into quite a bit of sh!t doing it, & I'd share it with all of you here.

LJ Hooker Maroubra (NSW)- the listing agents Anthony Rizzi & Anthony xxx (can't remember his last name) convinced the vendor to take the property off the market before the auction, bought it in July 01 for $340k & sold it Dec 01 for $480k.

A director of a certain Hocking Stuart branch who bought his next door neighbour's house for $200k & sold it 3 weeks later for $340k. His excuse was he wasn't acting as an agent in that transaction, so nothing could be done against him.

He also talks about many 2 tiered marketing companies, 2 of which I have experience with. Stamford Lyon (classic negatively geared GoldCoast property marketer), and The Investment Institute. He gave specific examples of how buyers were sold way overpriced properties by these people. Also talked about another company called Networth Institute or something which worked in conjuntion with Ray White Surfer's Paradise.

Agents Castran Gilbert of South Yarra (VIC)actually bill the vendors for planting dummy bidders in the crowd! The nerve!

He also slams developer Central Equity for false advertising by projecting unachievable growth in Southbank etc. He lists specific examples where investors who bought 4-5 years ago have lost between $20-$120k upon resale. He's also compiled the sales of the last 48 months in one block, and on average, the sales have been at a loss rather than profit.

Crooked solicitors- he mentioned a Simone Campbell, who threatened to sue him for exposing what she did in helping The Investment Institute solicit an apology from a client whom they ripped off.

I'm sure if you email him he'd send you a whole list of the 2-tiered marketers etc etc, this is all I can remember for the moment. Would love to see what feedback we have from this post.

 

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Reply: 1
From: Soon Will be


Hi anonymous,

I’m not personally involved in PI’s yet but do know I will be within a year. The year will give me some time to educate myself on the matter so I can avoid making costly mistakes. I have listened to Mr Jenman’s introduction tapes and have read almost the entire website, I do agree that the RE industry needs to work on its image but in Mr Jenman’s point of view he and his are the only non-crooked agents. The message should be do your homework or else….As for marketing companies, it would seem pretty obvious that they are taking their slice somewhere and regardless who is billed it’s the purchaser who pays.

“A director of a certain Hocking Stuart branch who bought his next door neighbour's house for $200k & sold it 3 weeks later for $340k. His excuse was he wasn't acting as an agent in that transaction, so nothing could be done against him.”

Ok it may seem like a nasty thing to do but I am of the opinion that unless deception was used e.g. the agent telling his neighbour the house was worth no more on the market, this man got a great deal which would be applauded by all here if he wasn’t an agent. I have heard it said numerous times that investors generally prefer their accountant, solicitors and agents to be investors and again unless this guy took advantage of his neighbour he would be qualified an ace investor.

If this agent did take advantage of his neighbour I believe the Department of Fair Trading should be able to offer assistance. Any claim to the value made regardless of the presence of a listing agreement would be deemed to have been made in the agent’s position as an agent rather than just a consumer. This would seem to be a straight out of the book misleading and deceptive conduct case unless the agent clearly stated that his opinion of the value was made from a consumers rather than a professionals point of view. You don’t mention whether the agent was pursued for his actions, but he either acted within the law as an investor and did a great deal or acted against the law and has probably been penalized for it. It’s a shame you were only provided with limited information obviously so presented to have you agree to a certain point of view (all non Jenman agents are evil)

Mr Jenman argues agents aren’t policed properly as the REINSW is run by agents but fails to mention the dept of fair trading at all.

Just thought I’d put my two bobs in.

 

[Anonymous]

Reply: 1.1
From: Anonymous


I find all this Jenman stuff all very interesting!

We have (or had)? our very own "Property Investigator" frequent this forum, and as soon as he mentioned something negative about the Harvard Institute - BANG! They were on to him (or her) like a cut Pig!

Maybe he or she should have a quiet coffee with Mr Jenman?

 

[silverghost]

Reply: 1.1.1
From: Silver Ghost


...and where IS Property Investigator?

 

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Reply: 1.1.1.1
From: Property Investigator


The Property Investigator is alive and well. Sorry to all the people who have been waiting on my reports, but I have had a few personal issues to deal with lately which have not given me the time I needed.

Mr Jenman needs to be very careful. I know of more than two parties who are about to sue him for his comments, and from what I have seen, Mr Jenman will be digging deep to pay the defamation damages case he will surely lose.

I have also had the pleasure (not) of meeting Mr Jenman and seeing him in action. Whilst he has no idea who I am, I sincerely believe he may be bordering on mental instability. I also know quite a few Jenman agents, and they are just as ethical (or unethical) as the case may be, as non Jenman agents. There are good and bad in every group, and Jenman agents are no different.

We must not forget that Mr Jenman is a smart marketing guy, and not much more. I have seen many examples of Mr Jenman also acting with questionable ethics. Whilst I agree with a lot of what he says, I caution you against taking everything he says as fact. Particularly when he denigrates innocent parties for possibly his own personal gain, when there is no real foundation for his comments.

Based on my sources, we may see a little more of Mr Jenman in court soonish defending some pretty strong defamation cases.

I have so much goss I could share with you all about a number of parties I have been looking at, but based on recent experiences with Harvard Securities, I am a little more cautious these days. I will get a few reports out soon though.

Property Investigator

 

[Anonymous]

Reply: 1.1.1.1.1
From: Anonymous


Glad to see you back in the land of the living, PI - welcome.

Hope your personal issues are sorted out.

Looking forward to your next report(s) - life has been quite dull without them.

(By the way, what was the outcome of the little misunderstanding with the dingbats at Harvard? - I suppose we may never know. Pity)

 

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Reply: 1.1.1.1.1.1
From: Anonymous


I attended the seminar too & read his book. I don't think Jenman thinks all non Jenman agents are evil. He openly admits not all Jenman agents are saints- they are merely as good as far as he knows. From memory he also did admit that some of the agents out there are actually ethical (can't remember, too long since reading the book).

You gotta admire the guy for his nerve & willingness to speak out. It is simply not in his best interest in the litigious society that we live in, & I really don't think the franchise fees his agents pay him is worth putting his a$$ on the line.