Anyone works with The Successful Investor company?

Discussion in 'Property Experts' started by Mcube, 4th Jul, 2017.

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  1. Mcube

    Mcube Well-Known Member

    Joined:
    11th May, 2017
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    212
    Location:
    Canberra
    Hi,

    Just
    wondering anyone bought the investment property from the successful investor company? The managing director is Michael Sloam. If so, what do you think of the company? Thanks.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
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    Location:
    Sydney
    Never heard of them.

    There are plenty of companies out there like these though - you'll find that most people here are not fans of the approach they take.

    I had a quick look at their website.

    investment property

    Between meetings our research team with assistance from your Property Advisor and our General Manager will be busy assessing hundreds of properties to find one or more that are a match for your circumstances. We have access to properties from 100 builders and developers across Australia. The research team will ask more questions, make more phone calls and do more research than 99% of investors will or can ever do. They spend hours pouring over plans, discussing your needs with builders and running cash flow figures on potential properties again and again.​

    The fact that they seem to be selling only developer stock rings alarm bells.

    A quick search of their site reveals no information at all on how much their services cost (although I may have missed it!).

    From these two bits of information, I surmise the following: they are NOT buyers agents, but are instead paid by the developers. If this is the case, there is a natural conflict of interest there because despite their best intentions of "no pressure" and trying to match your price range and cashflow requirements - they are NOT operating with only your best interest in mind (because you aren't the one paying them) and there is every likelihood that the properties you are offered are the ones that make them the most money rather than properties that are actually going to perform well for you as an investment.

    I'm happy to be corrected about their approach if I've come to the wrong conclusion, but otherwise, I would urge caution.

    Either way - you have to do your own due diligence and make sure the valuations and rental appraisals being presented actually stack up.

    Interestingly, in one of the "books" they have published on their website, they do go into a bit more detail and talk about how they are not a "one stop shop" and recommend using an independent mortgage broker - and that they do insist that people get a full valuation done (either by the bank or get their broker to organise one if the bank isn't going to do it). That's a good thing - you need someone else to validate that the prices being asked stack up. They also talk about engaging a solicitor or conveyancer and getting B&P inspections done.

    So I'm a little confused by their approach. It seems that they recommend developer stock (and get paid by the developers?) - but it also seems like they do a lot of due diligence (cashflow projections and such) and recommend their clients get independent advice and valuations - so it may well be that these guys are one of the rare groups doing mostly the right thing. That's not an endorsement - I simply don't know enough about their process to be able to make a judgement either way.
     
    wombat777 and Brady like this.
  3. Mcube

    Mcube Well-Known Member

    Joined:
    11th May, 2017
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    Location:
    Canberra
    Thanks so much for a detailed analysis reply, Simon! Yes, I was just wondering anyone has heard of them before. I will definitely be doing my due diligence.