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  • In the Spotlight

    "Remote properties have been problematic" says landlord Angela Bryant

    I wouldn't like to say Vanessa.

    To be fair, it wasn't said in the spirit of "laughing up your sleeve" but came across as a genuine concern to protect the interests of the developer.

    The discussion was not specifically about crowdfunding either.

    But it did strike me as alarming with my investor's hat on.

    To use your word  *sadly* there was a rather single-sided point of view expressed - an overall assumption that attendees would not be investors but require investors, ie: have no money!

    I went there to learn more about finding and assessing development deals, but there was much emphasis on chasing the money.

    Angela

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    Author of The Complete Guide to Property Strategies and The Complete Guide to Property Investing Success
    Learn more at http://www.completepropertysuccess.co.uk

    I also post property updates on my Facebook Page

    "It is the small decisions you and I make every day that shape our destiny" Anthony Robbins


    Thanks Angela.

    "As the developer of course, you will want to 'pay yourself first' and you surely deserve payment for your project management skills and your time." 

    Of course the developer is responsible to the share-holders/investors not the other way around, so the comment about paying yourself first is somewhat misleading imho and investors should wake up to the power they have and not think they are at the mercy of the developer.  These fees should have been agreed from the outset, but I very much doubt they are.

    On another discussion, it was mooted that all crowdfunded developments have an independent person audit their affairs on a regular basis.  This would stop excessive money being spent on expensive management fees, marketing to bring in more investors, and other activities that do not benefit the investors in the existing scheme as these unfair expenses are eating away at the profit margin (assuming there is one).

    Until that happens, this type of crowdfunding remains the "wild west" and a lot of people will unfortunately lose out financially imho.  However, because some developments  that have now completed could not be sold to repay investors, and are now being rented out long term, it gives a long time frame for more money to be raised, more damage to be done ... before the true scale of the losses become apparent.

    I have expressed concerns a number of times and been pooh poohed in certain quarters - but I expected that.  There is a lot of denial in the early stages when something is starting to go off the rails. 

    Time will tell of course and more than happy to be proved wrong as I hate the thought of anyone losing their hard earned cash!

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    Apologies to all for thread drift.

    To get back on point, and reading between the lines -  similar to the title of the thread, Angela is saying 4 years on that she feels more comfortable with:

    1.  What she knows

    2.  Investments she controls herself

    3.  Low risk investments that plod along over time rather than higher risk investments with potentially more instant gratification.

    4.  Investments that are in close proximity to her in a geographical sense.

    Is that a fair summary Angela?

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    Without waiting for Angela's response I would comment

    Food for thought here!

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    Yes, thanks Vanessa,

    That is a good and fair summary of my overall thinking presently, which does seem to have come round (after much arching) full circle... annoyingly!!

    I wonder if it's in our nature (at least mine!) to seek. I'm reminded of the parable of the acres of diamonds...

    I'm still prone to seeking, but I keep it under control at least and only venture around the edges, leaving our main business intact.  It's fun to explore but can be dangerous, so needs to be done with caution!

    I do think it's a shame - hence my previous comment 'the property world's gone mad' - that there is a growing appetite for more and more amazing, fantastic, clever, sophisticated, super-duper-duper strategies and solutions - and plenty of gurus to feed us this sh!t.

    I was at an event recently where the speaker quipped that you don't need to be clever to be a landlord - in fact, it's so easy you could have a lobotomy and still do it.  I know he was joking and playing to the crowd for laughs, but the *sad* truth behind it is that sort of plodder-bashing (!) has insidiously become the norm.  And it's not fair:-(

    Seriously, there is a danger we forget the age-old wisdom behind the somewhat out-of-fashion acronym of KISS: keep it simple, stupid!

    What's being overlooked, as they say in The Compound Effect, is the small things we do every day, which really lead to either success or failure.  It's not the 'one big thing'. 

    Angela

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    Author of The Complete Guide to Property Strategies and The Complete Guide to Property Investing Success
    Learn more at http://www.completepropertysuccess.co.uk

    I also post property updates on my Facebook Page

    "It is the small decisions you and I make every day that shape our destiny" Anthony Robbins

    What's being overlooked, as they say in The Compound Effect, is the small things we do every day, which really lead to either success or failure; it's not the 'one big thing'. 

    Such an important point and one that should be emphasised more.  Thank you for contributing forum gold!

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