Discussion in 'Property Experts' started by lightbringer, 3rd Feb, 2020.
just wondering if anyone is aware of them and how do they perform.
Freedom Property Investors
"WE WILL NOT RECOMMEND A PROPERTY UNLESS WE HAVE PERSONALLY INVESTED IN IT OURSELVES"
- SCOTT KURU & LIANNA PAN"
Wtf! So they buy half the house before they recommend it to you!"
I think they source land and build whole sale apartments/townhouses with their funds and the investors.
ok, so they are essentially selling OTP developments, like every other investment "specialist", while claiming they have bought into it themselves? I guess it's technically true if they own the development, and sell off 100%
I don't know them at all but often there are massive conflicts of interest and biases IMO when companies operate this way.
As an alternative, I'd much prefer to engage a well recommended buyers agent who will independently source the property for you. Much less chance of bias and personal agenda with a BA than a company who is most likely wheeling and dealing with everyone.
That's a huge alarm bell. They're telling you they will help you invest, then they sell product that they're making a profit from. Chances are they're working in their interests, not yours.
sometimes you just step aside and let the lemmings go.
I'd be cautious to jump to conclusions based on a few snippets. Often the website material/marketing content appears spruiky despite the owner's genuine intentions. Unsure if they do developments themselves, however I found this article which describes one element of their approach:
His investment model involves getting “four or five people together” before approaching builders or developers of new property, based on their research, and negotiating as a group to try and get discounts or added extras in a deal that would include a property per person.
“The first thing is we just want a discount, not off the asking rate, a discount off market value (a judgment made by potential buyers and the bank). I’m not talking 40 per cent off, probably 3-7 per cent off, sometimes 20 per cent off — but that’s really rare,” he said.
Source: Scott Kuru: How a father of four built a 16-property portfolio - realestate.com.au
If the above represents the entirety of the model, I personally don't have a major issue with it, so long as investors are fully aware of the risks and can do their own DD.
I belief they facilitate group buying, meaning they bring a number of investors together that are ready to invest, and after identifying projects in high-growth areas, they then negotiate directly with the builder/developer to bulk buy at a lower price (not through agencies) so everyone saves and gains faster capital growth.
And, by the sounds of it they also buy into projects themselves - meaning they don't just recommend, but buy what they suggest others to buy. Seems a good strategy and fair approach to me. Do some more reading on them - is my suggestion... Sounds a lot better than what some of the investment cowboys out there are doing, if you ask me.
What a great story!
Broke at 40yo, 16 properties at 43yo.
$8 mil in property, that would barley cover interest.
"Mr Kuru bought in Melbourne growth corridor suburb Eynesbury"
So he bought in 2016, according to SPI EYNESBURY VIC, AU SUBURB PROFILE - FREE REPORT
3 yr growth 22% and 3.7% rental return.
So he was broke at 40, can't put together $3k and somehow purchased $6.5 mil or RE.
The article with a title of "How" is just deceptive click bait and reads like a press release or paid advertisement.
So did he put a deposit?
Did he buy without a deposit?
How did he borrow the money?
Did Ms Pan put up the cash or deposit and security and now he owns the property?
Oh wait the website says 16 properties in 6 yrs.... and the words "invested in".
Seems like a big load of BS to me.
What about it sounds like a good/preferred strategy over alternatives?
People who buy stuff themselves isn't always a good thing...I've seen it before where the blind were leading the blind...
It's ALWAYS better to learn the skills yourself rather than relying on a sales person - b/c that's what they are, are the end of the day...because, worst case scenario is that you can have an intelligent convo around the buying criteria.
If you're clueless, it all sounds reasonable.
ironic how established property is generally a far better investment over OTP , yet these "spruikers" selling points are always "we get good deals from developers"
so their business model completely falls over if they had to buy established
A registered business name only
No apparent licensing : Oh......Buyers agents ? You be the judge.
I did find a expired NSW license OneGov Mobile | Public Register + enter Freedom property Investors
For some reason this pPopped up on my news.
Lianna Pan: From migrant to $16m property portfolio - realestate.com.au
Well I became a member with them their is a joining fee which is pretty normal but the property they are suggesting to me to buy I can buy it online myself through the developers site or even on real estate .com for the exact same price on all three that is the listed price so I don't know where the discount is? Although it is through a group buyer developer but anyone can purchase it online not just people in their member's club. Maybe to early to tell but I guess they find developers in hopefully upcoming areas and direct customers to them but just from what I can see on this one deal there isn't a exclusive group discount for freedom investors like as they are selling it to me at the same rate as anyone online. Not sure what to make of it.
When did you join? Did you fund any value yet? Do you think if you have difficulty in obtaining refund if you are not satisfied?
They approach developers with their ‘Buying Club’ and in exchange these developers provide volume discounts or rental guarantees. They claim that you can pay off your PPR mortgage in 7 years by recycling rental guarantees and using it to smash down debt.
Just wondering if the property suggested to invest in is an estate in Melbourne? I am about to commit but not completely sold that I’m getting a better deal compared to me going directly to their website and buying. Would love to chat
These guys have a real estate license so earn 50k or so per property they sell, which they are doing in “bulk”. The claim they are investing alongside is laughable given they’re effectively getting it at 5% of the cost of everyone else. It’s just a marketing ploy for people dumping new real estate. Stay away.
They are very opaque on their commissions which is a big red flag.
Separate names with a comma.