Property Investment Companies

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Property Investment companies have certainly gained an unfortunate reputation in New Zealand courtesy of a raft of them going under and taking millions and millions of dollars of people’s savings with them.

Unfortunately the odd gangster running some of these companies make things worse by hiding their assets and continuing to rub people’s noses in it by their ongoing extravagant lifestyles once they are bankrupt.

The thing about these property investment companies however is what were they trying to achieve really?  You see I think a property investment company should be providing good quality property investments right?  In the same way I run a property investment education company you would expect me to provide good quality investment education.

Well as an insider in this industry I can tell you that it is very rare to find an investment company that focuses on the client or the property.  Sadly the vast majority are focused on one thing, how big a margin can they make out of the property.  Their ability and interest in supplying the right advice and then the right property is lacking.

Unlike a real estate agent, whose primary function is to sell a property for as much as possible, property investment companies must learn the concept of clients for life, good faith and above all, honesty.

It is my privilege to work with some of the only property investment companies in the country that do put clients first. In fact some of them use me to vet the properties for their clients to ensure they are doing the right thing.  And in addition they either charge a fee or fully disclose their interest in the actual property.

The end result is clients that keep coming back to buy more and more property because they are building successful portfolios.  Since 06 I was warning people about Blue Chip and The Docks and other products being marketed by companies that were secretly margin trading property or operating in ways that were not designed to assist their clients.  And nearly all of those companies are now gone, taking fortunes with them.

The signs are always there, sometimes you have to get help to dig them out but companies like mine and many others will do that homework and tell you so that you can stay as safe as possible.

This is why I encourage people to take control of their own investing and don’t put your future into the hands of property investment companies that don’t have your best interests at heart.  Don’t give the profit away to someone else, bank it yourself!

Stay Inspired and Stay Safe ~ Dean Letfus

The ethical Investing Strategist