Anyone had experience with Investco?

Hi all
I'm new to this forum and would much appreciate some thoughts and feedback if anyone has had any experience with Investco? Their website is Home - Investco Strategies and they are based in QLD. My husband and I recently attended a seminar that they put on that our accountants had promoted and have since had some chats with regards to them sourcing investment properties. They don't charge their clients any fees for sourcing or appraising properties we find but just get the commission off the sale. They like to sell off-the-plan to take full advantage of depreciation and less stamp duty. They have recently brought to us an opportunity and it looks ok, although we need more time to look into the details. We would just like to find out if anyone has dealt with them and what your experience has been. Are they trustworthy?

Many thanks in advance.

 

You've come to the right place!
First work out how much commission they make from a potential property your looking at, then pass on that amount to the respondent's as a thank you if the advice is helpful

 

They're essentially working for developers to sell properties to the public. Their sales process includes seminars which has some useful information, but it's primary purpose is to motivate people to purchase a property as an investment.

What's telling is they only sell off the plan properties. Established properties don't form part of their financial plan, despite often making superior investments.

A buyers agent charges roughly $9k - $12k and they only act on behalf of the purchaser. How much commission do these people make?

They may be acting ethically, but the statistics of the number of businesses following this business model suggests that you'd end up paying far more than the property is worth and could do better than if you did your own due diligence or engaged a buyers agent to help you.

 

If you do go down this path, make sure you get an independent bank panel valuation for any property you consider buying from them.

Even if the property price you pay matches the valuation, you are still likely paying a premium for the property.

 

Thanks everyone. Yes we are still doing due diligence and bringing to their attention established properties in the same estate for less to get their thoughts. They do welcome if we find established properties for their appraisal. So while their strategy is off-the-plan, they say that they would appraise ones we've found. The commission they get is the standard between 2-3% like real estate agents.

 

Have they declared that? Many developers pay 5% just for the leads which the main agent converts.

 

Yes they told us that in a meeting and I think we have it in a booklet. I think they said it's that fixed rate for the state that the property is in that real estate agents are allowed.

 

I've made this point a number of times, the problem I have with these organisations is what they aren't showing you. In other words, they aren't showing you the opportunities that don't get them a decent commission. By the way 5% is still more than double what you would expect to pay a plain old REA.

So what aren't you seeing?
1) Established homes and apartments
2) New apartments in smaller developments (generally don't have the marketing budget to pay large commissions).
3) New apartments in developments that they aren't selling - could be a building next door!
4) Potentially better apartments in the same development that has been proposed to you - this happens when the developer appoints more than one project marketer.

So take a look, but be highly sceptical. I've been down this path (not with Investco) and it isn't pretty.

 

Hey @Dbaker !

All the best for your property journey. Just want to say that I really don't like the idea of going down this path. How do you know they won't skew figures to make it more appealing or not appealing enough (in the case you find a property and they appraise it)

I don't know your accountants personally but it seems like this is a better return for them. at the end of the day, all the information is available on free sites such as domain and realestate.com.au for sold prices for yourself to see what is fair value and what isn't.

 

@Dbaker i highly doubt they have your best interests at heart. I see so many conflict of interests its not funny.

Personally i would run fast and far. Without looking back.

 

"Run Forest, run"