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Positive Property Solutions- How to report a spruiker

Discussion in 'General Property Chat' started by bez23, 25th Jun, 2016.

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  1. bez23

    bez23 Well-Known Member

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    Hi

    My friend just went through this mob Facebook
    and they have been burnt bad.

    They call themselves property educators and their catch phrase is "buy 10 properties in 10 years"/ "pay off your mortgage in 6 years". I have serious concerns about the activities of the proprietor George Markoski. They do not disclose commission that they receive from the developers and valuations consistently come back about 10% lower than purchase price and they make all sorts of excuse why that is the case. Mainly it is because of the amount of kick back they receive.

    Now, they are actively pushing for SMSF deals. Giving advice on how to buy property in SMSF and partnering with an accountant to set up the trusts/ SMSF. I find this highly unethical as he is playing with people's life savings and he is not licenced to give SMSF advice. I think it is these type of people that gives property investment such a bad vibe. Anyone has success reporting people like these to ASIC and willing to share their experiences?

    Thank you.
     
    Last edited by a moderator: 18th Aug, 2016
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  2. nothingman

    nothingman Active Member

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    would definitely report people like that and get all their dealings investigated
     
    Last edited by a moderator: 18th Aug, 2016
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  3. Marg4000

    Marg4000 Well-Known Member

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    If they are giving financial advice you could report them to the financial ombudsman for investigation.
    Marg
     
  4. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Unfortunately that's because they're not required to. Until Property Investment is classified as a financial product under the Corporations Act then spruikers will continue to burn people.

    The best thing you can do as an investor is engage and only deal with companies and/or individuals who are aligned with and are members of PIPA and therefore are subscribing to their Code of Conduct. You can then be sure they are acting in an ethical manner and in the best interest of the investor.

    For those who haven't heard of PIPA or what they're about, I would strongly suggest having a look through the site and learning more about what is needed to regulate the industry in which everyone on here has a vested interest. The more support they receive, the sooner we will all be protected. It astounds and disgusts me that you need a financial licence to advise on a $100 insurance product, yet dodgy spruikers apparently providing 'investment advice' are really only selling overpriced properties making undisclosed $40,000 commissions and need no qualifications other than a sales certificate.

    MyPropertyPro receives no monetary benefit for promoting PIPA. We pay to be a corporate member and to retain QPIA enrollment - we are simply passionate about the regulation of Property Investment as a financial product under the Corporations Act as a benefit for all property investors and choose to align ourselves with organisations and individuals who hold the same beliefs.
     
    Last edited: 25th Jun, 2016
  5. joel

    joel Well-Known Member

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    How do people fall for this crap..

    The guy can't even take a proper profile photo. Can barely string two words together in his "free book worth $29"
     
    Last edited by a moderator: 18th Aug, 2016
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Breaching the corporations act is a serious offence - report breaches to ASIC.

    They may also be breaching real estate legislation - report these to the fair trading office in the relevant state.
     
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  7. bez23

    bez23 Well-Known Member

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    Can you elaborate these 2 breaches?

    I guess most clients can't be bothered with the additional paperwork and let it slide hoping that their new investment will double in value as promised. Not many people want to rattle the cages.
     
  8. bez23

    bez23 Well-Known Member

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    Not to mention all the facebook reviews are written by friends and employees.
     
  9. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    That facebook page is hilarious. There are some photos of a lady on it which look fitting to the start of a low budget film starring a librarian and a plumber
     
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  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    SMSF and super are financial products and only those holding an AFSL or authorised reps can advise on financial products. This includes suggesting someone set one up.

    State legislation governs real estate licencing and someone selling or earning a commission without being licenced may be in breach.
     
  11. bez23

    bez23 Well-Known Member

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    That's apparently the girlfriend/ fiancee lol
     
  12. bez23

    bez23 Well-Known Member

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    Thanks for this.

    He is in SA and selling properties in SE Qld. Does he need to be licensed for Qld or just SA?
     
  13. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Must be licensed in any state in which you offer property services requiring a license to be held
     
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  14. bez23

    bez23 Well-Known Member

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    DaveM do you know who the relevant bodies are in SA?
     
  15. Redwood

    Redwood Well-Known Member

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    Here is the relevant guidance.
    http://asic.gov.au/about-asic/media...unlicensed-financial-product-advice-on-smsfs/
    Put simply - who is recommending the SMSF - they may refer that to a CA/CPA - which is fine until Saturday.

    If the property advisor is not licensed they fall into the category in the link?

    Who is recommending the property in the SMSF? are they a auth rep of a AFSL? if not, they may be in breach of Corp LAw - refer to link above.

    Thats a start - these questions should be answered very quickly.

    Further, is any conflict of interest disclosed? i.e are all comms disclosed, and are they recommending the property and a loan.... if yes, is the conflict disclosed.

    Personally, I don't trust anyone with a gold necklace or shirt buttons undone below the chest. Based on the facebook page, I wouldn't trust them.

    Remember if it too good to be true, seek a second opinion.

    Hope that helps.

    Ivan
     
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  16. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Consumer and Business Services manage occupational licensing in SA including real estate licenses.
     
  17. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Not sure what they are doing but it looks like the company is run though a discretionary trust and they don't even have a registered business name.
     
  18. Greyghost

    Greyghost Well-Known Member

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    I hadn't done an ABN search or anything, but if it is a trust and the corporate trustee's name is the business name, then there is no need to register a business name as this will be the registered business name.
     
  19. nothingman

    nothingman Active Member

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    this sounds like a good 'a current affair' scam story haha
     
  20. big max

    big max Well-Known Member

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    If they are engaged in any kind of misleading or deceptive conduct report it to the ACCC. They will take appropriate actions.
     
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