JDL strategies

[ming]

Hi there! I'm a long time lurker but this is my first post!

I'm just wondering if anyone here has had any experience with JDL strategies based in Queensland?

I went to the Property investment expo in Adelaide and was intrigued at their 'whole package' approach. Basically they do everything from setting up a property investment plan, locating suitable investment properties (in Queensland only I think), arrange for property managers and even reviewing the investment plan regularly to ensure that it is actually working.

I am currently quite new to the realm of property investing and I have been reading up on some of the books recomended in this forum. Although I would really like to be capable of identifying good investment properties eventually, the approach offered by JDL is rather assuring for a beginner. The fact that they practically advise on every step from the planning stage to purchasing the property is enticing for beginners like myself. And they apparently ensure that all their clients understand each and every step along the way before anything is done.

I'm just a little worried this sounds a little 'too good to be true'? The cost appears to be rather reasonable ($4400 for the investment plan and locating a suitable investment property). I intend to meet with one of their client managers soon and I just want to know what questions I should ask and what I should be wary of. Any opinions/experiences with JDL would be greatly appreciated.

 

[handyandy]

Seems like he read RD/PD (Robert Kyosaki) and is liberally quoting from this book.

If you look at their team that is a lot of people that need to be paid.

If you think that you are going to get the best deal from this type of org then go for it. Realistically, any of these team members are going to see any deal before its presented to you so if its good who do you think will buy it?

From my observations these type of org's sell overpriced properties and possibly are even associated with developers (double commissions) to maximise the price obtained rather than the best price for the client.

Now this is not all bad as you do get up and running fast the down side is how much baggage are you going to be carrying. This is not just related to the initial price paid but also the ongoing holding costs. A number of posters on this forum have entered the market using these types of organizations so hopefully they will comment further.

I suggest that you use them as a source of info along with lots of reading and then use this forum to hone your info gathering and then eventually do your own thing.

Cheers

PS you may want to check out their due diligence pdf http://www.jdlstrategies.com.au/pdf/JDL_DueDiligence_Online_Brochure.pdf

as they have pretty well outlined all salient point.

 

[ming]

Thanks handyandy.

Realistically, any of these team members are going to see any deal before its presented to you so if its good who do you think will buy it?

That's an interesting point! I didn't really think about it as I assumed that there are laws in place to protect investors from situations like that. Definitely something I should be wary of.

Is there anyone here who has used a similar organisation? I'd really like to hear of your experiences and other potential 'pitfalls' with these type of companies.

Thanks.

 

[ggumpshots]

Thanks handyandy.


That's an interesting point! I didn't really think about it as I assumed that there are laws in place to protect investors from situations like that. Definitely something I should be wary of.

Is there anyone here who has used a similar organisation? I'd really like to hear of your experiences and other potential 'pitfalls' with these type of companies.

Thanks.

Let the buyer beware is the foundation of contract Law.
if the deals are so great why not attract the local market who can easily inspect the sites.Running costs to send people interstate could be easily avoided.

Its a good ploy to entice someone who cant easily quiz locals or check out the competition.
what ever you do don't buy until you phone some local real estate agents locally. Going on the Internet wont be sufficient

 

[Sailesh Channan]

I am sure you will learn a lot from talking to consultants in this organisation. However, it is best to approach independant people outside the organisation to obtain second opinions. There are several mortgage brokers on this forum you can talk too about the finance aspect.

You can then look in your own city for areas to invest. The best way to get started is to buy a block of land and build your IP. This way you will obtain your property at cost without paying thousands in hidden commissons. Established properties are always sold at a premium.

The level of premium paid rises based on who you buy the property from. Therefore if you purchase a property direct from a builder then the premium will be the least and gradually increase. This highest premium is paid if you purchase a property from a marketing organisation.

 

[cgw]

HI Ming,

I got a bit lazy last year and thought may be I should look at buying through some sort of Investment Club and had an interview with JDL. All these investment clubs appear to be the same ie selling brand new properties from developers and getting commissions, that the buyer is somehow paying for.
If it is going to be your first IP, and you are a bit nervous about it, may I suggest you buy a Defence Housing Investment Property in Adelaide. You get an excellent tenant, no rental vacancy and no maintenance problems for 10 years. They build IPs in Northgate, Windsor Gardens, Craigmore, other Northern suburbs and the City.
Read Jan Somers, Michael Yardney and Margaret Lomas books. Get on this site and ask questions. Set your budget, make sure you can afford it if interest rates go up another 1-2 %. Get finance approved, Get a broker that has IPs himself and get rid of all the negative thoughts. Find a few suburbs close together within 5-10 km of each other and start searching. You will soon get to know the prices and what is over or under priced. Find some first time investors to speak to, and learn from them.
If you cannot find time on a Sat or Sun or during the week to do house inspections, for about 2-3 months whilst you do your searching etc, then pay the money and use an Investment Club.
Good luck

 

[ming]

Thanks guys. I've had a chat with one of the client managers and although it seemed very convinient to just use JDL I have to say that the kind of properties they source are usually quite expensive (I can't afford it). To their credit the investment plans they produce is quite reassuring for novice investors and they really do take care of practically everything.

cgw you are right, they make their money by getting commissions (~8% of the property's price I think) from the developer but I was told that because of their buying power they will be able to negotiate lower prices for properties. This strikes me as a little weird because negotiating a lower price essentially lowers the amount they get in commissions.

Thanks again for the replies, I'll attempt to make more time to research on properties myself and continue to read the books recommended in this forum. Cheers!

 

[Tikki]

Hi Ming,

I purchased 2 properties through JDL and have found them pretty good to deal with. You do initially pay the 4400 fee, but there is another fee which they should explain to you when looking at properties, and that is roughly 20K (tax deductable). This covers their staff's time.

I have been very happy with them and their strategy and their finance team were able to open doors where other lenders had shut. However did find it very difficult during the building phase, for the loans with no rental income coming through to compensate. Then when the houses were finished, there was a glut of new properties on the market, so took 2 months and a rental drop of 20 per week to get someone in there.

The property management team have been exceptional. I have had no follow up one year later, but that may still be coming...

All up, I'm happy, but wouldn't do it again.

BTW, I studied the area prior to purchase, and decided that with the amount of money the govt was spending in that area on good roads, uni's, large shopping complexes and the prices of surrounding suburbs, the house price was quite fair - not over priced.

 

[MSL]

Hi Ming,
Just wondering how you're going with the whole investing thing. Did you end up buying through JDL or have you gone with another buyers group?
Thanks,
MSL

 

[burty85]

Hi Ming,

I purchased 2 properties through JDL and have found them pretty good to deal with. You do initially pay the 4400 fee, but there is another fee which they should explain to you when looking at properties, and that is roughly 20K (tax deductable). This covers their staff's time.

Wow close to 25K to buy some property, how about you paid that to me and I find you a house to buy, it will be good, I can make up some glossy hand outs with a happy family sitting around in a nice house all having a great time, put some testimonials about how happy my customers are and then tell beat around the bush about my costs till its too late .... better yet save yourself the 25K and jump on www.realestate.com.au

I have been very happy with them and their strategy and their finance team were able to open doors where other lenders had shut. However did find it very difficult during the building phase, for the loans with no rental income coming through to compensate. Then when the houses were finished, there was a glut of new properties on the market, so took 2 months and a rental drop of 20 per week to get someone in there.

Seem to be great, surprised that you didn't get a guaranteed rental package with your 25K....

The property management team have been exceptional. I have had no follow up one year later, but that may still be coming...

All up, I'm happy, but wouldn't do it again.

BTW, I studied the area prior to purchase, and decided that with the amount of money the govt was spending in that area on good roads, uni's, large shopping complexes and the prices of surrounding suburbs, the house price was quite fair - not over priced.

If you studied the area before you bought, why not just buy off your own back??

 

[Zeddy]

Hi Ming,
Just wondering how you're going with the whole investing thing. Did you end up buying through JDL or have you gone with another buyers group?
Thanks,
MSL

MSL

Ming has made 3 posts in 4 years, the last in 2007. I don't think you can expect a reply anytime soon.

 

[MSL]

Thanks Zeddy,
Realised only after posting!!!
Have you heard of that group?

 

[INVSTOR]

There is other threads on this forum in regards to that group