Then there are the spruikers (marketeers) and sales people. I’m talking about those who are the owners and managers as well as their sales staff.
Property marketeers are in a special category. They are the ones who have the highest influence over investors, stand to make the MOST money/profit, yet seem to wear the least responsibility, do the least work and amazingly are the least qualified and scrutinised by Government authorities. Go figure!
That’s a pretty big statement and a worrying one – but it’s true. Real estate sales people get a bad rap, along with car sales people and lawyers but investment property sales people and marketeers can easily make or break a person’s financial future and will do it without blinking an eye.
We put ourselves in this category (not spruiker but marketeer) so we stand alongside those we criticise, and we are constantly aware of the responsibility to our clients to maximise their current situation in terms of ‘buyability’ (yes, that’s a new word). Technically it’s called BC (borrowing capacity) while also ensuring we do all we can to help them manage their cashflow, so they are in a state of being ‘comfortably stretched’.
Why do we say investment property spruikers are the real SHARKS of the industry?
We have dedicated a separate chapter to most of these categories in our book, How to Jump into Property Investing Without Being Eaten By Sharks where we discuss how to find a good one, as each one plays a very important role in your property wealth creation journey.
Jump into property spruikers (marketeers) – so who are the sharks? Well that’s a matter of opinion, but our experience and that of many of our clients is that the sharks are the ones who circle around waiting for those of us who dangle our feet in the water and then strike with power and intensity until they have drained every last bit of blood from our body.
Maybe that is a little dramatic and unfair but let us talk about how they work, and you can make your own mind up.
There are a lot of decent companies out there than we first thought. We used to think the company which sold Mike his first two investment properties were one of the good guys but over time, he found out that they were focussed on profits, above all else.
They used all sorts of glossy information styles and smokescreens to help build Mike’s belief that he was in safe hands. Mike had access to the head honcho who would speak at events and treat everyone like his best long-lost friend. Always smiling and telling virtuous stories of a bigger life, a holistic picture of spiritual health and mental wellness.
Once many got close enough it was found he was morally bankrupt and in business ethically challenged. Mike was silly enough to put much of his superannuation funds into their syndicated land projects, which after nine years were still not complete and when they do, he will have less funds than he originally put into them.
These projects are set up with no risk to the supplier and total risk to the purchaser. If by fluke any of them succeed (which a couple have), the returns are limited to 10% pa to the investors, with the cream going to the company who sold them. We did say ‘a couple’ and that was mostly in Sydney during the biggest boom in 20 years, so pretty hard to fail that one!
So, always do your research. Speak to friends who are investing to understand their experience and get some tips about working with the right kind of people. Make sure you get your questions answered and feel comfortable with the people you plan to go on the wealth creation journey with. It’s important.
Owner and Principal Consultant
Mike is an author, serial entrepreneur, and savvy real estate investor. He manages his business with integrity and respect. Mike has seen first hand how sharks can act without dignity and not in the interest of their
Let Mike and his team guide you to a successful property portfolio while being on your side every step of the way.
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