Anyone heard of Inside Track property people?
Discussion
Because it's a mass mail shot, I'm straight away thinking that it's a vehicle to make plenty of money - not for me, for the people that run it.
Anyone had any dealings with them? Inside Track or the financial people behind some of the deals "fuel"?
>> Edited by Byff on Thursday 12th January 18:54
Anyone had any dealings with them? Inside Track or the financial people behind some of the deals "fuel"?
>> Edited by Byff on Thursday 12th January 18:54
I've heard their adverts on TalkSport. From what I can gather these people are an investment club (not quite sure exactly how these 'clubs' work but I think it's based on everyone clubbing together to purchase 'buy to lets' in new developments, rent them and make money from the rent and capital appreciation of the flats. A good startegy 2,3,4,5 years ago, for a short term win, but nowadays a far longer term strategy is required simply because we don't have such a bubbling property market.)
The first seminar will be free. I'd bet a fair amount that in order to really learn the 'secrets' and join will cost you thousands.
I'm sure that these clubs work if you have money to start off with but if this is your route to make a fortune I'd say that there are better ways to do it. As I say - I think the market for this type of investment has peaked IMHO.
I'm sure others on here have more experience than I on this (perhaps direct experience?) and will be able to guide you with a fat steadier hand.
The first seminar will be free. I'd bet a fair amount that in order to really learn the 'secrets' and join will cost you thousands.
I'm sure that these clubs work if you have money to start off with but if this is your route to make a fortune I'd say that there are better ways to do it. As I say - I think the market for this type of investment has peaked IMHO.
I'm sure others on here have more experience than I on this (perhaps direct experience?) and will be able to guide you with a fat steadier hand.
Interesting stuff here about the background here ... www.tiscali.co.uk/money/guardian/features/2005/02/5/buy-to-letwaytoriches.html
First seminar is free. Then you get invited to a two-day seminar costing £2,495 and if you want to join that's a membership of IAP of £5,995.
IAP get 3% of the final purchase price as the fee for each deal.
One 'advantage' of these clubs (so they say) is that because they are so big (which is debateable in itself) they can get bigger discounts on off-plan properties than you or I could. Now, call me a cynic, but if they're the people telling you how much the property 'costs' but "we can get you 10% off", who can say what the real cost should be? A more tangible advantage is that they could open up your portfoliio to markets other than the UK. But agin, if you want to buy property in South Africa (which a colleague of mine is doing) you can do it yourself anyway.
First seminar is free. Then you get invited to a two-day seminar costing £2,495 and if you want to join that's a membership of IAP of £5,995.
IAP get 3% of the final purchase price as the fee for each deal.
One 'advantage' of these clubs (so they say) is that because they are so big (which is debateable in itself) they can get bigger discounts on off-plan properties than you or I could. Now, call me a cynic, but if they're the people telling you how much the property 'costs' but "we can get you 10% off", who can say what the real cost should be? A more tangible advantage is that they could open up your portfoliio to markets other than the UK. But agin, if you want to buy property in South Africa (which a colleague of mine is doing) you can do it yourself anyway.
Having read the link in bigandclever's reply I'd steer clear of inside track as a firm (extremely dodgy if you ask me) although I do thin the idea has validity but might be best if you go down your own route.
If you want to buy a property to buy to let then approach a developer in your own right. I bet you could 15% off the purchase price in this market (easily). You then need to pick a spot with potential renters out there, go and speak to some estate agents in the area to get a feel (go in and say you're looking to rent is the best way and then go and have a look at their stock - gives you an excellent idea of what's out there in your price range and what to compare to your potential property.) Save yourself the 5k it would cost to join Inside Track and use that as part of your deposit, running costs, or keep it in the bank for when the property is empty.
I boils down to the fact that if it was easy to become a millionaire in this way everyone would be doing it. Making a great deal of money is bloody difficult and it certainly isn't going to happen to you through a mailshot landing on your doormat - but the idea might lead to financial security if you take it and apply your own hardwork to it.
I work for a major housebuilder (the one with the helicopter in the adverts in the 70's). 15% is achievable.
If you want to buy a property to buy to let then approach a developer in your own right. I bet you could 15% off the purchase price in this market (easily). You then need to pick a spot with potential renters out there, go and speak to some estate agents in the area to get a feel (go in and say you're looking to rent is the best way and then go and have a look at their stock - gives you an excellent idea of what's out there in your price range and what to compare to your potential property.) Save yourself the 5k it would cost to join Inside Track and use that as part of your deposit, running costs, or keep it in the bank for when the property is empty.
I boils down to the fact that if it was easy to become a millionaire in this way everyone would be doing it. Making a great deal of money is bloody difficult and it certainly isn't going to happen to you through a mailshot landing on your doormat - but the idea might lead to financial security if you take it and apply your own hardwork to it.
I work for a major housebuilder (the one with the helicopter in the adverts in the 70's). 15% is achievable.
You know that bargepole you keep in the cupboard over there? I'd get it out if I were you! A number of these clubs are being looked at very closely by the financial authorities. There was a thread about this as well in the business section not so long ago as well. DIY is the way to go if you want to do it.
Right, all these clubs are great money spinning schemes for the guys that set them up. A lot of them say you can become a property millionaire with very little investment. The idea is that the discount becomes the deposit, so all you are liable for is stamp duty.
However mortgage lenders usually lend on purchase price or valuation which ever is lower. There are a couple who lend just of valuation but still frown on developer discounts and don't accept more than about 5%, and only for a residential purchase not a Buy to Let.
It is technically (and legally possible) to sort this out for a Buy to Let and I presume these clubs tell you how or probably not just organise it.
However mortgage lenders usually lend on purchase price or valuation which ever is lower. There are a couple who lend just of valuation but still frown on developer discounts and don't accept more than about 5%, and only for a residential purchase not a Buy to Let.
It is technically (and legally possible) to sort this out for a Buy to Let and I presume these clubs tell you how or probably not just organise it.
I did attend one of their free seminars and realised that there is nothing they are doing that you cant do yourself for less money and more return. If you are thinking of buying off plan PM me and Ill give you some details of direct opportunities in Spain with 30% capital growth over 2 years and garunteed rental returns! dont go near inside track!!
smirnoff said:
Right, all these clubs are great money spinning schemes for the guys that set them up. A lot of them say you can become a property millionaire with very little investment. The idea is that the discount becomes the deposit, so all you are liable for is stamp duty.
However mortgage lenders usually lend on purchase price or valuation which ever is lower. There are a couple who lend just of valuation but still frown on developer discounts and don't accept more than about 5%, and only for a residential purchase not a Buy to Let.
It is technically (and legally possible) to sort this out for a Buy to Let and I presume these clubs tell you how or probably not just organise it.
very few lenders will do what you describe which is known as a vendor gifted deposit. it works only if the property values up at the sale agreed price - and we all know that generally if a property is being sold for 100k with a 5k vendor gifted deposit then it's only really being sold for 95k.
there are genuine cases where vendors will offer a deposit to a buyer to get the property shifted but again it does depend on the property valuing up at the sale price. with deals where vendors or more usually developers offer a 5% discount on the price the mortgage lenders will assume that the actual worth of the property is the price less the discount.
some lenders will allow the discounts and vendor gifted deposits, GMAC and kensington spring to mind
I attended one of the free seminars. What they are selling are courses and contacts to get you into the property market and learn the "secrets". In fact many of the "secrets" are common sense or can be found out with a bit of research. I also thought that one of the strategies they were promoting was very risky, that of acquiring properties for "no money down". Only advisable in a rapidly rising market, you need to build in a good 20% equity early on to ensure you can survive a slowdown, which you will inevitably have to do. Rental returns, with a few exceptions, are poor at the moment, so you have to be in it for the very long term.
octanebooster said:
I attended one of the free seminars. What they are selling are courses and contacts to get you into the property market and learn the "secrets". In fact many of the "secrets" are common sense or can be found out with a bit of research. I also thought that one of the strategies they were promoting was very risky, that of acquiring properties for "no money down". Only advisable in a rapidly rising market, you need to build in a good 20% equity early on to ensure you can survive a slowdown, which you will inevitably have to do. Rental returns, with a few exceptions, are poor at the moment, so you have to be in it for the very long term.
Excellent advice.
From personal experience, I lost nearly £10 000 once transaction fees had been factored into the equation on a "15% below market value" off-plan apartment in Newcastle. The equity simply wasn't there and the rental returns abysmal. Be careful.
>> Edited by Saied on Thursday 12th January 12:54
>> Edited by Saied on Thursday 12th January 12:55
Nothing you really can't learn, from spending £50 in the property, buy to let section in Waterstones...
Basically for the lazy, greedy people who can't be bothered to do even the basic research themselves, but want to 'bet' thousands and make big profits...
Actuallyreasonably priced, if you compare to bying any 'profesional course ie a days learning ms project with learning tree...
But nothing you can't do, yourselve, just buy Sarah Beeny book property ladder, or wacth the muppets get it all wrong in the ch4 series, will tell you pretty much everything you really need to know.
B
Basically for the lazy, greedy people who can't be bothered to do even the basic research themselves, but want to 'bet' thousands and make big profits...
Actuallyreasonably priced, if you compare to bying any 'profesional course ie a days learning ms project with learning tree...
But nothing you can't do, yourselve, just buy Sarah Beeny book property ladder, or wacth the muppets get it all wrong in the ch4 series, will tell you pretty much everything you really need to know.
B
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