As we are all aware from the Get Rich Quick thread, there are many sharks in these property waters.
I therefore ask the Tribe's assistance in compiling the ultimate guide on how to avoid becoming shark bait.
This thread was inspired by the increasing number of posts appearing on other forums of people describing how they have lost thousands of pounds to unscrupulous clubs, schemes, deal sourcers, etc.
If you yourself have lost some money, maybe you could let us know the psychological reasons why you parted with your hard-earned cash at the time. What was it about the marketing, presentation, or sales copy that disconnected you from your common sense?!
To get the ball rolling, here are my:
Top 10 Ways to know there is a shark in the water
1. BIG, BIG CLAIMS: "we've made hundreds of ordinary people millionaires, we're doing hundreds of deals, we're holding millions of pounds worth of property, we're doing 20 deals a week ....."
2. PROMISES OF GET RICH QUICK/NO EFFORT INVOLVED: "it takes no effort, become a millionaire in one year, it's No Money Down with £25K cash back, we do it all for you, all you need to do is sign papers Joe Bloggs started with £500.00 and now he has 600 properties ...."
3. A WEBSITE THAT LOOKS LIKE IT WAS KNOCKED UP AS PART OF A SCHOOL
PROJECT: if the company is as wealthy and successful as they say, then
surely they would have a professional website that reflected their
brand?. Look for spelling and grammar mistakes as these are a major
indicator of a non-professional organisation IMHO.
4. ARROGANCE: when asked to supply in-depth information, asked
challenging questions, etc, these sharks tend to turn aggressive and
try and bully you.
5. INCONSISTENCY IN THEIR STORY: Many of these sharks change their
story to suit whatever they happen to be doing, or whoever they happen
to be preying on. Do due dilience on line and check that their story is
consistent.
6. PROMISES OF "SECRETS", "A SECRET SYSTEM" : there are no "secrets" in property investment. All the information is freely available on line. There is no secret system for creating wealth from property other than hard work and educating yourself how to do so.
7. SPECIAL OFFER TODAY/EXCLUSIVE PROGRAMME/ONLY A FEW PLACES LEFT: In the current economic conditions, no one can afford to turn down business. The above are just ploys to make you think that it is urgent to part with your money. Sharks often talk of you "missing out" if you don't book on, buy the deal NOW etc.
8. LARGE SUMS OF MONEY REQUIRED UPFRONT: You should never pay for promises. You should only pay for actual results. Be extremely wary
of handing over large sums of money upfront. At the very least, the
shark should get you vetted for lending purposes before taking your
money. Once a shark has your money, it is very unlikely that you will ever see it again.
9. YOU HAVE TO USE THE SHARK'S BROKER AND SOLICITOR: By law, all
property transactions have to be transparent and subject to full
disclosure. On that basis, you should be able to use any broker or
solicitor.
10. SHARKS ASSOCIATE WITH OTHER PEOPLE OF A BAD REPUTATION: With the
transparency afforded by the Web, you can see who is "in bed" with who.
Check out if the company is working with someone who has a bad/poor
reputation. This reflects badly on them. See who's schemes they are an
affiliate of, see who they promote or network with. These are all
indications of the values of the company or person.
If you come across any of the above signs, my advice is swim like crazy!
Join the discussion on Property Tribes here.
Comments