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Downfall Of Btl Millionnaire

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Interesting article:

The downfall of a Nigerian Mr. Instant Millionaire

He told ordinary Londoners to jump on the Buy-to-Let bandwagon and get rich quick. They say he ran off with their life savings. Now Spencer Michael’s business empire is under investigation---

last month, the government announced a crackdown on unregulated businesses and forcibly wound up six schemes that encouraged speculative investment ------ and:

Joanna, his wife of eight years, has left him and been cut off without a penny. She is surviving on child benefit and handouts while watching her husband "blame everyone but himself" for their troubles

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But now, this well-spoken MBA graduate of Durhan University - who loved to boast that the "Financial Times calls me a genius"

Does anybody know if the FT actually did call him a genius at any point?

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Guest pioneer31

Does anybody know if the FT actually did call him a genius at any point?

he may be a genius.........at defrauding people

Although it looks more like a case of witless lambs to the slaughter, who fail to spot the first rule of a scam - If the man can make huge profits from property, why is he wasting his time telling you how to do it?

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That's the bloke from the BBC2 programme a few weeks ago. <sid_the_sexist>Nice wife</sid_the_sexist>, but a very dodgy "businessman" luring innocents and their credit cards into his get rich kwik scheme.

http://www.housepricecrash.co.uk/forum/ind...c=15598&hl=bbc2 might take you to the discussion if I've copied the right thing :-)

Andrew McP

PS There should be an "IMO" and an "allegedly" in there somewhere. It's quite possible that his intentions are entirely honourable and he has merely mislaid the missing money. It happens to me all the time; I found 20p down the back of my desk only this morning.

Edited by Andrew McP

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That's the bloke from the BBC2 programme a few weeks ago. <sid_the_sexist>Nice wife</sid_the_sexist>, but a very dodgy "businessman" luring innocents and their credit cards into his get rich kwik scheme.

http://www.housepricecrash.co.uk/forum/ind...c=15598&hl=bbc2 might take you to the discussion if I've copied the right thing :-)

Andrew McP

I love his website! http://www.propertyinvestorscourses.com

Especially the endless pictures of good-looking people appearing high on laughing gas with the obligatory glass of champagne, as if that is the only credible signifier of success.

I'm tempted to go along to one of his seminars to see how it's done, and what really really thick people look like up close.

And not all his claims are misleading: "The course to change your life. After three months life will never be the same again."

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The problem is people do not seem to understand that there is a huge bubble waiting to burst. If the journalists have no idea, how can you blame the ordinary folk? They trust the well dressed, attractive, educated people who can talk them in to making blunders.

Look at one of the Independent articles: they call the plateau:

Has the market reached a fragile peak or is it really a plateau

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The problem is people do not seem to understand that there is a huge bubble waiting to burst. If the journalists have no idea, how can you blame the ordinary folk? They trust the well dressed, attractive, educated people who can talk them in to making blunders.

Look at one of the Independent articles: they call the plateau:

Has the market reached a fragile peak or is it really a plateau

Because anyone who asks you for money so that they can invest it for you when they already claim to be rich and successful is clearly a charlatan.

The article-writer is well-meaning but (arguably) just wrong.

The problem really is greed blinding people to the obvious. Like the poster above said, why would anyone who knows how to make a fortune need your money?

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Guest Bart of Darkness
Especially the endless pictures of good-looking people appearing high on laughing gas with the obligatory glass of champagne

Soon they'll be drinking to forget.

No point me going along, I'm just not good looking enough to be a property millionaire!

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Soon they'll be drinking to forget.

No point me going along, I'm just not good looking enough to be a property millionaire!

...I might go along to a couple to make up the numbers,and celebrate our cause by getting terribly blotto on their gratis champagne.....while the rest drown their sorrows.

...that is if they still serve champagne by the time the crash gets into top-gear......more likely it will have been replaced with a party-pack of lambrusco.

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Champagne, is over rated and quite sh1te, same with salmon too. I think its the generation before us who thought it was posh or something.

That webby should have photos of people laughing with a can of stella in their hand, thats classy ;)

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Guest pioneer31

It would be nice to go along to one of Spencers seminars and heckle.

I wonder if 2 thugs would eject me swiftly though?

If turn up in a wheelchair, that may make it more difficult for them

:blink:

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That's the bloke from the BBC2 programme a few weeks ago. <sid_the_sexist>Nice wife</sid_the_sexist>, but a very dodgy "businessman" luring innocents and their credit cards into his get rich kwik scheme.

'Nice wife'?? are you kidding? she was a right munter!

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I saw the documentary about this chap. He was an obvious disgrace and a fraudster. The bad thing was that the BBC didnt actually tell the viewers what the fraud was. I was jumping up and down screaming at the TV, especially when that low income couple ended up with a 27,000 loss which was racked up on credit cards to pay for the deposit.

For those of you that didnt spot the fraud, it goes something like this......

A middle man like Mr Spencer finds a development project where properties should sell for, say, 200,000 per unit. He gets the developer to mark the price up to 260,000. Then he targets unsophisticated investors (mug punters...whatever you want to call them) who dont understand the property game, and tells them that he can get them a 15% discount on the property. He says that he can sell them the flat, which he says is worth 260,000, for 220,000.

Now the unsophisticated investor thinks hes getting a profit of 40,000 for just buying the property, which he can then sell on, on completion (or even before). Mr Spencer then tells his "clients" how to raise the required deposit...its easy...just borrow it on credit cards and get the main mortgage from the banks!!!! The idea is that they borrow the deposit on credit cards, put it into a zero percent repayment card so they dont pay anything for it (yet) and then sell the property and repay the balance from their huge profits.

So our unsophisticated investors put down their borrowed deposit and then apply for a mortgage, at which point the surveyor comes round and says "Are you kidding??....this is a 200,000 flat and we'll only lend you 170,000"...leaving the investor with a huge short fall of funds. So what happens? Theres no way the investor wants to go ahead with the deal now and his only option is to walk away and loose his deposit, the developer keeps the deposit and re sells the property and Spencer walks away with the 3,500 per person which he charges for his course plus a big back hander from the developer.

I'm sure alot of people out there can see this fraud...but theres also a twist which not many of you will know. This one is dangerous and tricks both unsophisticated and relatively sophisticated investors.

Some developers on larger projects sell on a couple of their flats, before they are released to the public, to their friends, for a hugely inflated price (lets say 260,000 for a 200,000 flat as before). The friends are also involved in the scam and of course dont actually end up loosing any money (the develoepr will usually give them a cash back after the deal).

This way when the surveyor comes round to value subsequent properties, he has a comparable showing the market value of these properties to be 260,000 and so all the figure stack up for the first wave of investors buying into the development. The banks lend full mortgage amounts and the investors are able to proceed with the deal, as above. Now they are buying a 200,000 flat for 220,000.

The developer obviously makes a mint, as does Spencer (in fees and kick backs). However it all hits the fan when the original purchasers try and resell the properties on........as they need to find a bigger fool !! When the properties are put for re sale and they have to compete against normal priced properties in the development next door...they cant and wont sell.

Beware of any courses you see or are considering going on like this!!!! Dont go on any courses where you pay lots to attend and where they also try and sell you their own pet developments. Any good course must teach you to have the right skills to make your own decisions not to be spoon fed by some fraudster.

Also avoid any scheme that claims to be "no money down" like the plague. Yes such deals do exist but they should only be done by experienced investors (who no doubt already have money...spot the paradox!) rather than by investors that havent done any deals yet.

Ski Bum

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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