anyone here heard about Investors club?
http://www.smh.com.au/news/national/you-can-bet-your-house-on-it/2008/02/08/1202234167210.html
http://www.smh.com.au/news/national/you-can-bet-your-house-on-it/2008/02/08/1202234167210.html
Investors Club
- Thread starter lenovo
- Start date
If you spend 6 months reading and posting here, you'll probably have a better education than most of the investors club advisors...
Needless to say, I find their strategies to be fairly basic (not that there's anything wrong with that) and clients tend to be heavily reliant on them rather than looking out for themselves.
Needless to say, I find their strategies to be fairly basic (not that there's anything wrong with that) and clients tend to be heavily reliant on them rather than looking out for themselves.
Part of an interesting read.
The BSA said wealth creation companies that had charged commissions to the failed RPC included the Australian College of Financial Education Pty Ltd, the Investors Club, the Blackburne Property Group, Onsite Direct and Gary Omara.
http://www.theaustralian.news.com.au/story/0,25197,23210418-25658,00.html
Gerd
The BSA said wealth creation companies that had charged commissions to the failed RPC included the Australian College of Financial Education Pty Ltd, the Investors Club, the Blackburne Property Group, Onsite Direct and Gary Omara.
http://www.theaustralian.news.com.au/story/0,25197,23210418-25658,00.html
Gerd
I dont know too much about them but this article is way too negative. The writer hasnt got a clue how to write an article and what he should use as facts and examples.
He's used Michael Boyacii from Kellyville as an example who's paying 80% of his income towards his mortgage. No investor pays that much unless he's earning less than $10,000/yr. Why would you compare this case with an owner occupier.
Secondly out of all the property experts out there, they are quoting Neil Jenman and his ridiculous theories of average property should be worth hundred million by now.
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Dear All,
1. Isn't it "funny" that BSA should choose to "blame" the various wealth creation education companies for the Real Property Corporation (RPC)'s bankruptcy;- after all, it was RPC's own decision and willingness to pay up the unrealistically high 15% commission for each of their marketing/sale referrals for their own in house development project houses/units.
2. I cannot help but wonder that has the RPC's housing/apartment projects are competitively priced and so "attractive" to the end buyers per se as an investment property or/and their own marketing project marketing campaign so successful in the first place, why does RPC needs to rely on the various wealth creation education companies to help them market their project houses/units?
3. In this RPC's demise case, I specifically note that Custodian Wealth Builders (CWB) Group was not officially included in the list of spruikers quoted by the BSA, as receiving the 15% commission for each successful sale referral.
4. Yet there seems to be some attempts to link JLF Corporation or/and CWB Group to such irresponsible market practices, as far as the same news-reporting goes.
5. Does anyone in this forum, know or/and is highly familiar with the way how the JLF Corporation go about "selling"/"marketing" its own inhouse development projects/housess to the CWB investors as well as the main reasons why their in-house marketing to CWB investors, has been so successful to date?
6. On the other hand, if one is to help some overseas/inter-state investors organise themselves to invest at wholesale level (instead of purchasing a newly completed house and investing at the retail price level), by acquiring their own vacant land and building a house on it subsequently, through providing some sort of "project management service" in return for a fee to be paid by the investors, I do not think this is neccessarily wrong as the 2 parties concerned are actually "collaborating" and "leveraging" on one another's expertise/resources/time to make more monies for themselves.
7. As a property investor myself, and by paying a certain fees, I have found it to be more time-efficient and more cost-effective for myself, to procure such kind of "project management service" from certain trustworthy and highly experienced hand-on individuals, who specialise on helping investors to optimise on their land usage through proper house design and who are also able to source a cost-effective building contract services from the various competing builders and supervise the house construction by the appointed builders, on my behalf.
8. Likewise, I have similarly used some professional buyer agent services, such as the Hegney Buyers Bureau, to help me source for my property investments in Perth when I first invested into this market in 2002 as I was initially unfamiliar with the Perth Property Market, back then.
9. For your further comments and discussion, please.
10. Thank you.
Cheers,
Kenneth KOH
CWB is no different to other such operators in the market today. They buy land on option contracts and sell them for a profit. They also get the builder to add a commission into the contract price.
If a company is providing a service without any fees then they have to be receiving income from the recommendation.
Most large organisations have several sales people, administration staff and large offices. Those that run marketing campaigns and seminars have even higher costs.
Therefore, they have to make a significant amount of money per sale to survive.
The amount of profit they make would be comparable to would you would make from buying a block of land and building an IP yourself.
If a company is providing a service without any fees then they have to be receiving income from the recommendation.
Most large organisations have several sales people, administration staff and large offices. Those that run marketing campaigns and seminars have even higher costs.
Therefore, they have to make a significant amount of money per sale to survive.
The amount of profit they make would be comparable to would you would make from buying a block of land and building an IP yourself.
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Dear Sailesh,
1. I agree with you.
2. However, for some new investors, sometimes, they simply "need" to receive some form of self-education on property investment first, in order they can get started on their property investing journey or/and subsequently to properly appreciate the cost savings involved by adopting your present recommended investing approach.
3. As a builder and property developer yourself, do you not provide similar property investment education for your clients first, before they invest with your Company initially?
4. If not, how do you actually go about "marketing" your professional services to other potential clients in the market, who may not know your Compnay or your services at this point in time?
5. Looking forward to learning further from your sharing, please.
6. Thank you.
Cheers,
Kenneth KOH
Don't know where you got this average property worth hundred million from !
I find Neil Jenman the shining light of the real estate industry (although he's no longer a land rep) which has its fair share of crooks and dishonest sales people.
Hi Kenneth Koh
I agree that people need to start somewhere and all these marketing companies do a good job of educating the public and motivating people to take the plunge into property.
I guess it is up to individuals to then carry out due diligence and further educate themselves on the various investment options.
Most of our clients are repeat business or referrals from existing clients. We are lucky that most of our clients are self educated and need very little education to understand what we do.
We believe in the philosophy of providing a good and unique service and by doing so we need not worry about marketing as the business will come our way. In the past we have turned people away especially those that are not referrals or repeat business as we only we had a certain capacity to help people. However, now that we have our own construction company we can help a greater number of people especially those looking for house and land packages. We research areas that have the capacity to create $40 to $50k in equity for the investor on completion.
We do not market our services. The only public exposure we have is on internet forums.
The problem with many of these groups is that they charge a large fee to the investor via a kickback arrangement with the builder and often make money on the land via the put and call ...
They justify the price by getting a finished end value - valuation done which in effect says to the investor ... when completed ... your home will be worth X ...
therefore that is what you pay today ... but really this is still buying retail and not wholesale ...
The valuation should be on land cost + construction and the commission paid should be no more than what a builder would pay their own sales rep ... then investors are getting a true value added service at no extra cost.
When you consider an average com for a new homes rep is around $7k ... this is more than enough for a seminar company to make to cover cost of sale... I can't see how they can justify $30k - $40k though mmm
They justify the price by getting a finished end value - valuation done which in effect says to the investor ... when completed ... your home will be worth X ...
therefore that is what you pay today ... but really this is still buying retail and not wholesale ...
The valuation should be on land cost + construction and the commission paid should be no more than what a builder would pay their own sales rep ... then investors are getting a true value added service at no extra cost.
When you consider an average com for a new homes rep is around $7k ... this is more than enough for a seminar company to make to cover cost of sale... I can't see how they can justify $30k - $40k though mmm
the investors club settled around 1760 odd property sales last year and about 1400 the year before,they have many millionaire members and budding-Enthusiastic members, liaisons with mortgage brokers,accountants,insurance companies, building inspectors
they have research and property management divisions and are growing in strength will a band of loyal supportists
they must be laughing to all the way ?
they have research and property management divisions and are growing in strength will a band of loyal supportists
they must be laughing to all the way ?
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