Pure Property Investment

Has anyone used SYDNEY based Pure Property Investment (Paul Glossop) to buy an investment property in Brisbane? Any feedback?

 

I have no idea who he is but I would never use a Sydney based contact ( sounds like BA) to buy in Brisbane. No way, no how.

 

Here we go, this is the guy . New to investing (3.5 years) and the whole BA scene since 2015.

The man who is $2.5 million in debt… and loving it

 

A shire boy isn’t he? Must be a good bloke!

 

I've found his interviews quite informative and transparent. He has interviewed with many prominent real-estate commentators and podcasts and comes across well. Moving into different markets makes sense if you truly believe there better opportunities that match your clients needs. I don't think one necessarily requires decades of experience within a specific state/city to make sound investment decisions. So long as you do your DD on the area, trends and council nuances etc. Many Sydney based BAs could easily claim to be local area experts and have the numbers to prove it had the held property since 2012. Depending on the product I would arguably be more comfortable with a BA from Sydney suggesting other states/cities opportunity in this climate.

 

But why would you engage a Sydney BA to buy for you in Brisbane? To me it doesn't really make sense from a risk perspective. I'd much prefer a local expert who comes well recommended than someone from a different state.

 

Wouldn't say I'd prefer a Sydney based BA for a Brisbane purchase. The point I was making was that I would respect the idea that a primarily Sydney BA could suggest that it may not be the ideal place to invest at a point in time. The potential for a local BA to add value by being an area expert is also often based on their connections with local agents and hence can often be limited to a select few suburbs and product type.
I do agree that recommendations from forums like this are gold and influenced my choice in selecting a local BA. 'Well recommended' can be subjective and not everyone is able to distinguish a potentially un-suitable local agent vs a potentially shrewd interstate operator.

 

Yep I have no issues with that. My issue is when buyers sometimes use BAs in other states to buy in a different state. I think its daring at best and disastrous at worst . And I see no good reason to accept the additional risk as I'm sure their are great local BAs. That's how I see it anyway .

Just like selling, Personally I'd never use an out of area agent ( and i actually target OOA agents when buying as I see it as a potential point of weakness) to sell my property if there were great agencies within my local area .

 

As BAs we engage in this same strategy!

 

Have to agree with Leo here @Sackie - I fail to see how truly comprehensive a non-locally based BA service can be. I've written before on the topic on my site- not sure if I can post a link here but if you do a search on my website "Go local or use a national buyers agent" you should find my blog. Go local or use a 'national' Buyers Agent? - House Search Australia
(apologies if link isn't allowed here Sim )

 

Thats a bad thing? How many properties are you buying that you need to buy all over the city?

 

Agents often act on a brief investor provides them. If you provide a brief for a product that does not fit the demographic of their local area then they may not be able to service you as well as another agent. The broader point being made is that you need to do your due diligence. Understand their business model, what areas and product they specialist in and whether that suits your needs.

 

Office is based in Cronulla. I can remember when he was in YIPM for the annual buyer's agent awards, he 'outbought' the entire field by a factor of nearly 2 to 1-i.e. in the year he had bought nearly twice as many properties as any of the other top 10 buyer's agents had for clients (whether that is good or not is debatable). It worked out he was buying a property almost every 3 days for a client. His model though from what I understand is based on buying a lot in relatively quick succession (less than 5 years). He does buy units-a big difference amongst buyer's agents as to whether they do this or not.

My understanding is quite picky on what he buys, but has certainly made a big splash on the scene after so little time. Used to be a pharmaceutical salesman

 

One property every three days? About 120 per year? Say 10k MIN per property? 1.2+ million in 12 months?

 

Yes so in the magazine article most people were around 50 or so per year, but he was well over 100. Thus your maths is probably correct.

 

There are many metrics to measure a buyers agent by but gross deal volume is certainly not one of them unless it is qualified by contextual parameters. i.e. Ask how many properties have you personally purchased in a specific area in a specific dwelling category relative to my brief and investment goals.

Running a volume based business model can come at a cost to the client, as the BA role requires very high levels of proactivity and relationship nurturing of local agents and vendors, which is why many of the best buyers agents will limit themselves to a handful of briefs at any one time, deliberately capping themselves. It is why a number of the top BA's in the aforementioned YIP list sit in the 30-90 annual purchases category (myself included).

By spreading yourself thin, as a buyers agent you simply will not uncover the same volume of pre and off market opportunities for clients and you certainly won't have the level of trust established to extract information that can be leveraged in negotiation. Sales agents also usually prefer to deal with local BA's as there is an ongoing relationship which spans many deals and the strong chance of referrals back into their own business when the time comes for the client to sell.

That said whilst Paul didn't buy more than the other top 10 (That was Cate Bakos see link above who had 3-4 every week), his number of properties purchased is still very respectable and unlikely to have a detrimental effect on his clients outcomes.

On an annecdotal level, having met Paul a few years ago when he was starting Pure Property, I'd say he is someone who has lived and breathed the investor journey and passionate about his profession and doing the right thing by his client which can only be a good thing.

 

Paul has been featured numerous times on the Smart Property Investment (SPI) Podcast mainly hosted by Phil Tarrant. At first sharing his story, then leading to more regular appearances giving his opinion on various topics, e.g current state of markets around the country.
His most recent appearance was to publicise a new book he has authored; more details here: Investor reveals why he dived into sharing his investment journey.

Paul has also been a guest speaker at info nights/seminars hosted at the Rydges Hotel Parramatta by prominent figures in the SPI Universe: Munzurul Khan (Phil's accountant) & Jeremy Iannuzzelli of Keshab Chartered Accountants, Ross Le Quesne (Phil's MB) & Scott Le Quesne of Aussie Home Loans Parramatta.
I believe these events are now held in the Sydney CBD.
Perhaps sign up for these (they are free) and attend when he is speaking to get a better feel for his knowledge/skills.

He has always come across as a genuine, decent bloke with a good amount of integrity though have only spoken to him at length once.
Cannot comment on his professional track record however if you dig hard enough on PC, there is an older thread that made mention of his services whereby a forum member posted a mixed review with their purchase in QLD. From memory, one of the main negatives was the asset was located near power lines which wasn't advised/disclosed by Pure Property (have tried to run a search but cannot locate the thread).

One final thing of note: At first I put Paul's repeated appearances on SPI podcast down to his budding stardom in the industry.
Then one time on another podcast (I believe it was Property Investory) he let slip that Phil Tarrant is actually his cousin.
This has never been revealed on the SPI podcast nor should it be but take from it what you will.