Open Wealth Creation

They tell me they make money from both the upfront fee (9-10k or 2.2%) and also sales commission from the developer (which I will ask how much this is). I don't have a problem with people making a cut as long as I'm paying the same or less than going direct (just like mortgage brokers) and that all cuts are disclosed.

The theory is buying via a group is you get better bargaining power with the developers - i.e. fixed price contracts vs variable add-ons, guaranteed start/end dates and so on.

I'm going to have a second meeting with their more senior advisor.

If anyone has any questions they want me to ask them let me know.

That's interesting, when I commented on this last November, the developer kickbacks, sorry sales commissions, were not disclosed and everything was said in such a way that suggested absolutely no other commissions other than the upfront *cough* *cough* buyers agent, I mean, mentor fee.

Not to forget the building comms as well considering such a discrepancy between what they stated the cost was and what I was told directly from the builder and developer at the time.

The median used in the proposal at the time was almost definitely Brisbane and not Griffin.
I spent the day up there a few weeks back with a friend who is in the game and it was interesting getting the ins and outs of the whole North side.

What suburb/s are they pushing now, it's either still Brisbane northern corridor or I'm taking a guess at North East corridor of Melbourne.

I did state previously also that I believe the book has sound fundamentals and strategies if your interested in that sort of thing.

:D
 
The theory is buying via a group is you get better bargaining power with the developers - i.e. fixed price contracts vs variable add-ons, guaranteed start/end dates and so on.
.

The Investors (or Property) Club, along with a number of others work on a similar system don't they?
 
Yes - the line about 'we disclose all commissions' only came out after I asked who gets the sales commission from the builder. Would it have come out earlier, who knows? If I were to proceed with such a group, ALL commissions would be disclosed in writing.

Here is a direct quote I had from a builder when I was last looking at H&L packages at a $550k advertised price:

"Hi you can take $25k off this for no agents"

To compare with PropertyBuyer.com.au (Sydney based BA who seems pretty good to me), they refund the commission to the investor the few rare occasions he has recommended a H&L package.

Yes - same areas - Nth Brissy and Nth Melb.
 
Hey guys,

I've been through this initial stages with OWC very recently as well as a great 1 day seminar last weekend followed by drinks with the directors themselves...FYI, I dont know them from a bar of soap but it was great to meet them and the team in a social environment and they were more than happy to answer any questions about the company, their motivations, and just general investment info.

I received a further call today from the person I had my initial 1.5 hour one on one with just to follow up and see how I was tracking. I'm not currently looking to purchase but have lots of questions around an OTP property that is due to settle in the next few weeks, as well as how best to setup my finance for the next purchase which I have planned. Please note that neither of these purchases are through OWC but they have offered to run the numbers with me and provide some direction simply because they want to see me make the best decisions. This sat really well with me and as mentioned before, I made it very clear in my conversation that I do not tend to spend any cash with the at this stage.

I have a work mate who has purchased through them recently and is very happy with the purchase and process as well as the area he has purchased in. There was another attendee from the seminar who said he spent about 20-30 hours of DD and settled on the same area that my work mate has just bought in through OWA. He was looking to buy a similar size house and land package around 20k cheaper than what my work mate had paid...BUT, he had already spent 20-30 hours on his own research, and still was yet to complete any form of setlement, would have to choose his own builder etc etc...I'd suspect there would be another 30 hours of work there for him.

If you are happy doing all the research yourself, go for it...all depends how much you value your time and whether you prefer buying property that way but in my eyes, and my experiences so far (and of my work mate) I would be quite comfortable purchasing through OWA.

Yes, there may be some fee's on top of your purchase...you are paying for the research, the contacts and ease of purchase. If you arent comfortable with this, go it alone but I definately feel there is a place for this company in my own strategy.

Also - If you are concerned about what the costs are that have been tacked onto the purchase, just ask them. I'm extremely confident they will be more than happy to provide that info...if you arent comfortable with costs being added onto purchases then why would you even be exploring using a BA or company such as this...none of them work for free...would you?
 
DavidMc,
Care to sure suburbs they suggested in your meeting with them?
Coota

A guy from OWC had a phone meeting with me this week.
He said that he just joined the company for 3 months.
I asked how many properties he got, he said 2.
Then he tried to set my financial goal with me - I told him I already set my goal in 2012.
Then he tried to explain to me about the importance of finance structure - I told him that I already have one loan-one property.
Then he tried to tell me why I shouldn't cross securitise - I told him that I already know the answer.
Then he tried to explain what infill mean - OK, this is something new.
Then he tried to tell me why I should buy new properties.
Then he explained that why I should buy land+house package from Open Wealth - rental guarantee, free assessment every 6 month to access equity, blah blah blah.

I asked him to send me some numbers so that I can assess the feasibility.
He suggested me to have another meeting to talk about the numbers.
I said that I do not want to waste our time if the areas are not good.
Then he told me that their lands are in ... ** this is important **
1. Greenvale Parks in Hume City Council
2. Clyde in Casey Council
 
Spoke with OWC last year. The book and their techniques have merit within, some good direction/inspiration if you're starting out looking at property investing imo.
The house n land package sales push was where I became less impressed, northern corridor of Brisbane but lots of comparable land available (not infill as they suggest), priced well above both median and comparative properties prices in the exact same area, only build through one builder...lots of red flags there for me, so went no further.
Not saying they're dodgy, I just wasn't comfortable proceeding after I scratched the surface.

+1. Investigated them some time ago, read the books, but decided to be an active investor instead.
All open information is good, as long as one can recognise whether the strategy suits.
 
Hey guys,

I've been through this initial stages with OWC very recently as well as a great 1 day seminar last weekend followed by drinks with the directors themselves...FYI, I dont know them from a bar of soap but it was great to meet them and the team in a social environment and they were more than happy to answer any questions about the company, their motivations, and just general investment info.

..
Also - If you are concerned about what the costs are that have been tacked onto the purchase, just ask them. I'm extremely confident they will be more than happy to provide that info...if you arent comfortable with costs being added onto purchases then why would you even be exploring using a BA or company such as this...none of them work for free...would you?

Seems you have just joined, right?
Most SS on this forum are active investors, I have found that out since joining, so I suppose OWC is suited to more novices or passive investors, that's all.
I have read the books and liked the presentation too, but as I pointed out I prefer a different investment strategy and prefer to be hands on with my investments.
I suppose most were just curious how OWC differed from most, that's all.
 
Seems you have just joined, right?
Most SS on this forum are active investors, I have found that out since joining, so I suppose OWC is suited to more novices or passive investors, that's all.
I have read the books and liked the presentation too, but as I pointed out I prefer a different investment strategy and prefer to be hands on with my investments.
I suppose most were just curious how OWC differed from most, that's all.

Fair enough and yes I've only recently joined the forum...I havent signed up with OWC in any way or purchased property through them. Definitely agree that they are for the passive investor using a buy and hold strategy, no doubt there are people on the forum looking for info on those strategies...just adding my insight\experience with this group so far. They definitely stand out from some of the other groups I have had experiences with recently...

Also they will openly tell you where they are investing...again just have to ask...they are more than will to provide answers to any questions you can throw at them whereas others will beat around the bush and steer you back onto the sell :)

Also - Sounds like we may have had initial interview with the same person at OWC, agree he is a bit fresh...in saying that I've also had him pull one of their head directors and head number cruncher into the room for the last 10 mins of the call so we could explore what he could not handle. I was impressed he knew his limitations when answering some of my questions and wasnt too proud to grab someone who was capable.
 
A guy from OWC had a phone meeting with me this week.
......
Then he tried to explain what infill mean - OK, this is something new.
Then he tried to tell me why I should buy new properties.
Then he explained that why I should buy land+house package from Open Wealth - rental guarantee, free assessment every 6 month to access equity, blah blah blah.

I asked him to send me some numbers so that I can assess the feasibility.
He suggested me to have another meeting to talk about the numbers.
I said that I do not want to waste our time if the areas are not good.
Then he told me that their lands are in ... ** this is important **
1. Greenvale Parks in Hume City Council
2. Clyde in Casey Council

What is Infill ?

Buying new Properties is for negative gearing when combined with depreciation I guess....

Rental Guarantee... sounds like a scam

is that Clyde area near Carlingford ?
 
I think these places are great for those who are knowledge and/or time poor.

You'll pay somewhere between 10k to say 25k extra on a $450k-ish H&L over doing it all yourself but you'll minimise quite a few risks and effort for this cost.

I've had friends who have been asking me about investing for 10 years and have done nothing... OWC would be great for them.
 
I think these places are great for those who are knowledge and/or time poor.

I couldn't agree with you more, as long as your eyes are wide open, DD is still a factor when selecting any product and/or service.

Definitely a consideration for the passive investor who wants to leverage other people to achieve growth and the desired wealth outcome in alignment with ones strategy.

I gave up on "sweat equity" a long time ago, now I use leverage to achieve the same results, usually faster.

Time is our one true asset which is limited in every way, we need to think smarter not harder.

(This expression is purely personal and in no way in support or affiliation of any one particular party) :D
 
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