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  • Property Training/Mentoring

    "No money down" property strategy ended up costing me £7,600 & putting me in debt!"

    I have just posted this in our Debt Advice thread but considered it worthy of its own post as a salutary warning.

    The debt advice tip in question is to be wary of claims of "no money down" property investments.







    This is particularly relevant, as I am currently supporting a lady who put a "mentoring programme" fee of £7,600 on her credit card. She had 12 sessions of one hour of mentoring, which amounts to over £600.00 per hour. It was promised that she would be taught how to do lease options as a NMD strategy.

    The mentor spent the hours mostly talking about his luxury villa in Spain and trying to persuade her to come on a weekend with him there at further expense of over £2K. He also advised her to start a new business - nothing to do with property - and then charged her £200.00 for a useless website that does nothing and has no traffic. And you guessed it! .... She would need to go on another course to learn how to generate traffic. I checked the mentor's website and it has no Alexa traffic ranking - and I do wonder how he feels he is qualified to mentor someone on traffic generation when he has no evidence of any success for his own website!

    I will be reporting more on this story if I can. The lady is very nervous about challenging the mentor and also doesn't want her husband to know that she has put so much money on the credit card with nothing to show for it.

    See also Malouf vs. MBNA - Section 75 makes credit card company liable in case of scam

    [Image: house.png]Related content:

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    Tribes' famous guide to avoid becoming property shark bait

    Property mentoring

    Investor in a rush gets conned

    Property education dilemma

    Wealth Dragons - go on their course to become less wealthy

    Experience of property courses - good or bad

    Routes to success in 2014

    15 things they WON'T teach you at a wealth creation seminar.

    Property training sinks lower and lower
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    From what you've read Vanessa was the initial pitch before sign-up incredibly well put together and professional
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    Chris.
    TWINPIER PUBLISHING LTD
    Specialist Debt Advice for business owners
    Exclamation Debt service overview here: http://twinpier.co.uk/
    e: admin@twinpier.co.uk
    t: 01825 830422 or schedule a time to talk with me in confidence here: Vcita

    For testimonials: http://twinpier.co.uk/testimonials/
    Yes, of course!

    It was marketed as a "90 day mentoring programme" but in reality turned out to be 12 one hour Skype mentoring sessions with the guru's sidekick, not the guru himself.

    The marketing of these courses is very seductive, of that there is no doubt.

    When the lady signed up for the course, she did not realise that the contract was on the reverse of the piece of paper. It was not pointed out to her. She had not read it. If she had, she probably wouldn't have signed up.

    Worth remembering that this is a completely unregulated industry. When the lady complained, the old chestnut of "you haven't been taking action" was quoted. She had nothing to take action on as far as I could see - other than handing over more money for more courses. She is not the only person unhappy with this programme, but it takes people to stand up against something for awareness to happen.

    I do my bit, but I am tired of fighting other people's battles. That is why I stick to understanding method and focus on that. That will help all avoid the pitfalls.
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    Over the years I've been in property, a clear pattern has emerged.

    Someone comes up with a 'creative' strategy pitched as 'the next big thing'- Off-Plan, NMD, 0% credit cards, Mortgage Express model, bridging loans, JV's, BMV, property sourcing etc (the list is pretty long).

    Before long, books and courses flood the market. (I've never paid for a course but I've probably got all the books - I reckon they represent a good ROI and they help me keep my finger on what's happening.)

    Some of these strategies, it has to be said, do work and have worked in the past (I've used some of them myself with varying degrees of success) BUT (and it's a BIG but) like most things in life, timing is everything!

    By the time most newbies have signed up to a course and jumped through all the expensive hoops they are required to, things will have moved on and those strategies will almost certainly be obsolete.

    Either the market has changed or lenders have tightened their criteria or the 'secret' strategies sold on the course are such common knowledge that everyone is wise to them, properties don't value up, the rental market changes - a hundred things could happen.

    So by the time someone is selling a course on a strategy you can probably guarantee it's past its sell-by.

    I'm often asked how I did it by people who want to start out in property.

    My advice? Go back to basics. Get one or two properties and then, maybe, start to think a little more creatively but not until you've done the hard yards and learned the ropes - the stuff they don't tell you about on the courses - ferrari-driving gurus don't talk about P&L, Cash Flow, Due Diligence, Form Filling, Systems, Processes, Checklists, Legislation, Repairs, Customer Service, Tenant Relationships - and all the other stuff that makes property interesting (some of the time) but boring (most of the time) - just like any other business.

    By that time, you'll be sure whether property is for you. If it is, you'll be fired up to build on a solid foundation. If not, you can get out without losing a ton of money and chalk it all up to experience.

    Forget the sexy creative finance!

    Be Brilliant at Boring!

    (Mmmmm - sounds like the title for a course!!!!!)
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    LETS MAKE HOMES by treating landlords as partners, tenants as customers & every property as our own."

    http://www.letsmakehomes.co.uk


    (19-05-2014 02:12 PM)ed_ferguson Wrote:  By the time most newbies have signed up to a course and jumped through all the expensive hoops they are required to, things will have moved on and those strategies will almost certainly be obsolete.
    So by the time someone is selling a course on a strategy you can probably guarantee it's past its sell-by.

    Reminds me of the cry in the city that stock brokers used when calling you up with the hot share offering...."Jim's in!"
    The Jim they referred to was Jim Slater who was probably "out" by the time the broker called you.
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    Chris.
    TWINPIER PUBLISHING LTD
    Specialist Debt Advice for business owners
    Exclamation Debt service overview here: http://twinpier.co.uk/
    e: admin@twinpier.co.uk
    t: 01825 830422 or schedule a time to talk with me in confidence here: Vcita

    For testimonials: http://twinpier.co.uk/testimonials/
    Brilliant just brilliant!
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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com

    Hi Lisa

    Were you referring to my post????

    If so, thank you....I've never been called brilliant before!

    (If not, sorry for being presumptuous!!!!)

    Ed
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    LETS MAKE HOMES by treating landlords as partners, tenants as customers & every property as our own."

    http://www.letsmakehomes.co.uk

    Yes I was Ed; beautifully put IMHO!

    I too agree there should be some kind of pre vetting by course providers; all well and good (sort of!) if they're using techniques that don't require financing but astonished how many people I speak to who have or are paying thousands for courses and are unable to get finance.

    Lisa


    (19-05-2014 02:32 PM)ed_ferguson Wrote:  Hi Lisa

    Were you referring to my post????

    If so, thank you....I've never been called brilliant before!

    (If not, sorry for being presumptuous!!!!)

    Ed
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    Lisa All comments are for education and information purposes only and do not construe as advice or a financial promotion. No liability is accepted for comments made. If you wish to receive information in an advisory capacity then please contact me about becoming a client. www.keys-mortgages.com


    Ed - where do we sign up to your course? Big Grin
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    Chris.
    TWINPIER PUBLISHING LTD
    Specialist Debt Advice for business owners
    Exclamation Debt service overview here: http://twinpier.co.uk/
    e: admin@twinpier.co.uk
    t: 01825 830422 or schedule a time to talk with me in confidence here: Vcita

    For testimonials: http://twinpier.co.uk/testimonials/
    My advice? Go back to basics. Get one or two properties and then, maybe, start to think a little more creatively but not until you've done the hard yards and learned the ropes - the stuff they don't tell you about on the courses - ferrari-driving gurus don't talk about P&L, Cash Flow, Due Diligence, Form Filling, Systems, Processes, Checklists, Legislation, Repairs, Customer Service, Tenant Relationships - and all the other stuff that makes property interesting (some of the time) but boring (most of the time) - just like any other business.

    Excellent post Ed! Smile

    But PT was way ahead of you ...

    See - Is the most money in property investment to be made out of boredom?
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    Or go EVEN FURTHER back to basics.

    If lack of deposit money is the issue, look at the "WHY".

    Is it time for a career change?
    Is it time to start or buy a business?

    Change your earning power so making enough money to regularly put down a deposit (or even buy cash) isn't an issue.

    Go backwards before you go forwards, buildup before breakthrough.

    Business ownership or well paid job to CREATE wealth, property investment to HOLD wealth.
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