Investor Clubs

Discussion in 'Original Property Investor Forum Archive' started by WebBoard, 15th May, 2002.

  1. WebBoard

    WebBoard Guest

    From: Mike .


    The Investors Club - What's Wrong with them?
    From: Andrew S
    Date: 5/2/00
    Time: 4:35:12 PM

    There has been plenty of comments of late in this forum from various people prepared to sell the virtues of the Investors Club. What I want to know is what is wrong with them? The (brief) investigation I've done suggests that their principles are pretty sound, and they seem to be doing the right thing, but every thing must have it's down side. Has anyone had any negative experiences with them, or have have any strong views against the way that they operate. I guess what I am asking is: What is the catch? It sounds too good.
     
    Last edited by a moderator: 5th Apr, 2017
  2. WebBoard

    WebBoard Guest

    Les

    Reply: 1
    From: Mike .


    What's Wrong with them? Is there anything?
    From: Les
    Date: 5/2/00
    Time: 10:42:26 PM

    G'day Andrew S,

    Before starting, let me say I have no attachment to Investor Club - I have not bought thru them, and have attended 4 (?) of their presentations.

    I was impressed with the lack of pressure, the genuine attitudes of the folk presenting (even naivete, in some cases). Their documentation appears to cover everything that could be raised as an objection - and they appear to be able to raise mortgages on your behalf at VERY good rates.

    So, WHAT'S the CATCH? Good question - and one I've asked myself too. If there is one, the only one that pops into my mind is the fact that they appear to go for the Investor market - typically Units/Town Houses. Not a problem in itself, but there is SOME danger in the fact that there are no (or few) home buyers in amongst to add stability to the prices. I have read where developers can justify their prices by comparing them to their last sales, or the other developer down the street. This can lead to an artificially inflated price structure in that particular market.

    To make the point, if they marketed houses then Mums and Dads would also be in there buying for themselves giving a broader base to the market, and approximately 16 times more people in that market (apparently only 6% of Aussies invest in property). When only 6% are "competing", it is possible for prices to go artificially higher far easier.

    That's all I can think of on the down side - I hope others can add more value to this topic; I would certainly like to read other points of view on this.

    And to answer the likely question in readers' minds, the only reason I haven't bought thru them is EGO (I reckon what they can do, so can I - but better ;^) If I did get on board with them, I would want to become one of the support members so I could learn more from their operation. (Might be worth buying one just to do that .....)

    What do others reckon? I'd love to hear some views from other forumites too.

    Regards, Les
     
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  3. WebBoard

    WebBoard Guest

    Gee Cee

    Reply: 1.1
    From: Mike .


    Re: What's Wrong with them? Is there anything?
    From: Gee Cee
    Date: 5/9/00
    Time: 10:07:57 PM

    Les

    I am certainly with you.

    It is not the kill but quite often the hunt! Twenty years ago I would have jumped in and gone with someone like the Investors Club. Nowdays I feel I can run rings around most of these organisations from just straight out being educated and streetwise in relation to at least residentual property investments.

    As we all know the only way to achieve that is to get out and take the kicks and bruises that come with learning anything worthwhile.

    I am the sort of person that says it is my money and I will invest it to the best of my educated ability. Not that of some salesperson who owns no investment property instructing you in parrot fashion how to become rich.

    But at the same time must rely on a salespersons wage to live week to week.

    Sort of like going to a doctor that learnt how to cure you from a text book.

    That is how I feel.

    Regards Gee Cee
     
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  4. WebBoard

    WebBoard Guest

    Les

    Reply: 1.1.1
    From: Mike .


    Re: What's Wrong with them? Is there anything?
    From: Les
    Date: 5/10/00
    Time: 9:12:05 PM

    G'day GeeCee,

    That's an important point, GeeCee - about salesmen - Jan mentions it in relation to buying a car (they couldn't tell her about the vehicle, they only knew how to arrange the finance ...).

    And I hear the same from an older, wiser bloke re brokers - he purports that most of them simply want you to "churn" your shares (so they get commission - doesn't matter if you are buying or selling to them).

    That may sound harsh, and I would be the first to say that there must be plenty of reputable, honest people in both of those professions. But there are others that aren't - and it's only OUR education that prevents us from falling foul of them. If you like, caveat emptor!!!

    Thanks to this forum, and other entities that allow the interchange of ideas, we can share opinions, knowledge, etc. and help to keep each other on track.

    How are the "terrible twins"?? Still keeping you up at nights?? Always good to "hear" from you,

    Regards, Les
     
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  5. WebBoard

    WebBoard Guest

    Gee Cee

    Reply: 1.1.1.1
    From: Mike .


    Re: What's Wrong with them? Is there anything?
    From: Gee Cee
    Date: 5/11/00
    Time: 9:49:08 PM

    G'Day Les

    It is always great to get on line and read your comments and ideas. Quite often they are very close to my own opinions.

    I guess that after having been to so many seminars, listened to so many property advisers that knew nothing and talked rubbish and seen friends ripped off that my opinion of the majoruty of agents and seminar people is low.

    As you mention some are reputable but most require the commission to buy the fancy suit, pay the BMW's lease this month and get some food on the table. That is why I don't believe to much they tell me on how to get rich.

    As to our lovely boys they have just turned 9mths and are doing well.

    Finally they are starting to sleep at least four hours straight so we can get a bit of sleep.

    Keep up the great feedback & comments.

    Gee Cee
     
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  6. WebBoard

    WebBoard Guest

    Ian (NSW)

    Reply: 1.1.1.1.1
    From: Mike .


    Re: What's Wrong with them? Is there anything?
    From: Ian (NSW)
    Date: 5/3/00
    Time: 5:09:46 PM

    G'day Les, Andrew S, & All.

    I can only offer what I wrote on 12/24/99...any "SPAM" is unintentional. I agree Les that yes, I may very well have been able to acquire a similar 3x2 Unit (new) for about the same $$...maybe less. However, for "ME" it was the other resources and bells and whistles offered as part of the service that led me to try them out ie: reduced settlements fee, property mgmt fee, insurance, mortgage brokerage (thorough gentleman) and so on. The other thing is that although I was very familiar with Perth...I was buying from 1800km north, Karratha! So most of the work was taken out of my hands...my preferred option at the time!!

    I must qualify things by acknowledging that Investor Clubs may not be everyone's cup of tea but I really can't find a negative word to put forward about the experience. For someone new and not neccessarily "certain" about breaking into the world of IPs, I would suggest the concept as perhaps a base to start learning...then try "DIY" next time.

    I think it is vital we acknowledge that some of us may not be as aggressive, assertive or especially...."confident" in the world of finances as some others. This is borne out when reading the forum entries...such a broad spectrum of experience. Les, like most, I continue to be impressed by your impartiality and diplomacy; keep up the good work!...ps...did you get to read any of Stephen Biddulph??

    Cheers everyone...Ian.
     
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  7. WebBoard

    WebBoard Guest

    Les

    Reply: 1.1.1.1.1.1
    From: Mike .


    Long distance property purchasing without tears ....???
    From: Les
    Date: 5/3/00
    Time: 10:59:26 PM

    G'day Ian,

    You brought up a very valid point there - re "buying from a distance". It sounds from your experience that this could be a relatively painless way of purchasing in an "unknown" (to you) area - e.g. Sydney siders wanting to buy in Melbourne or Brisbane, etc.

    Several entries in past months have shown that buying at a distance causes concerns.

    As a matter of interest, how long have you owned the "IC" property? How has it performed over time? Up to your expectations?

    Re Biddulph - No, mate - haven't found him in my usual bookshop - but thanks for the reminder; I might check my local library.

    Regards, Les
     
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  8. WebBoard

    WebBoard Guest

    Ian (NSW)

    Reply: 1.1.1.1.1.1.1
    From: Mike .


    Re: Long distance property purchasing without tears ....???
    From: Ian (NSW)
    Date: 5/4/00
    Time: 9:22:06 AM

    G'day Les & All.

    I purchased the unit new in November `99...so it hasn't broken any records for Cap. Growth...yet!! However, it cost (all up) 127K and rents for 170/wk in a quiet cul-de-sac in a group of 11 units. The QS report and my salary situation, indicates it will return significant tax rebate prior to the "5 year crunch". The development is quite common for Perth. Like my 2 other IPs, it is essentially long term super / security for my wife and two sons. I just happen to benefit from reduced taxation along the way...the growth will look after itself.

    To date I have taken a relaxed low key approach to building the first two IPs and buying the 3rd complete. I am happy with progress to date but am now looking at doing things a bit smarter, somewhat more speculative, and most definitely with more education and experience under my belt. I would like to develop a small unit complex near the beach in Adelaide (reasonable growth over time)....once again for long term; some cynics would say that is just as well for sleepy Adelaide town!! I will have a private valuation done on the Perth unit on its' anniversary...just to see how it is going.

    Cheers Ian
     
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  9. WebBoard

    WebBoard Guest

    Les

    Reply: 1.1.1.1.1.1.1.1
    From: Mike .


    Steve Biddulph's book
    From: Les
    Date: 5/5/00
    Time: 11:31:10 PM

    G'day Ian,

    Just a note to say "Thanks" for reminding me of the Steve Biddulph book "Manhood" - I picked up a copy last night from the library and finished the first read tonight. My first reaction is "WOW!!!"

    He certainly calls a spade a spade - and presents some very valid and thought-provoking arguments.

    There are areas I want to focus on on the re-read, and give it the time and thought it deserves.

    Thanks again.... Les
     
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  10. WebBoard

    WebBoard Guest

    Ian (NSW)

    Reply: 1.1.1.1.1.1.1.1.1
    From: Mike .


    Re: Steve Biddulph's book
    From: Ian (NSW)
    Date: 5/6/00
    Time: 3:11:53 PM

    G'day Les, Great news!...I hope you can take something away from it. As my "wise" former work mate / mentor said to me, "If only somebody gave it to him 25 years ago." As this is not the appropriate forum, should you wish to comment further, or just have a chat, please feel free to e-mail me at ianandjodi@one.net.au Cheers Ian
     
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