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" Buy To Let Firm Faces Questions"

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Buy-to-let firm faces questions

By Jessica Rose

Assistant producer, Face the Facts

BBC "News"

A controversial buy-to-let property firm that claims to offer flats for discounted prices has sold units at above market values, a BBC investigation has found.
...Radio 4's Face the Facts series has been exploring Instant Access Properties Ltd (IAP) and its sister company Inside Track Seminars Ltd (ITS), which is now in administration.
Scores of people claim IAP sold them properties which they could not get sufficient rent for or sell for a profit, leaving many buyers in financial difficulty.
However, IAP says many other clients have been able to break even and points out that property is a long-term investment.
...Maurice and Anne Brohn, from Manchester, bought flats in Florida and Brighouse, West Yorkshire, in 2005.
Mr Brohn says the Brighouse flat was discounted from £142,000 to £125,000.
However, two estate agents contacted by the BBC say the property would not have been worth more than £125,000-£130,000 at that time.
The property is now valued at £110,000-£115,000. The Brohn's Florida apartment, which cost $196,000 is being sold for $130,000.
The couple say they have lost thousands of pounds and have had to sell their own home.
"The situation is that desperate that bankruptcy is a very strong possibility," said Mr Brohn.
"This is all as a result of our involvement with a company to whom we paid large sums of money to do precisely the opposite."
Face the Facts will be broadcast at 12:30 on 25 July and 21:00 on 27 July.

Why? Why? Why?

Perhaps finally people will realise that there's no such thing as money for nothing.

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Buy-to-let firm faces questions

By Jessica Rose

Assistant producer, Face the Facts

BBC "News"

A controversial buy-to-let property firm that claims to offer flats for discounted prices has sold units at above market values, a BBC investigation has found.
...Radio 4's Face the Facts series has been exploring Instant Access Properties Ltd (IAP) and its sister company Inside Track Seminars Ltd (ITS), which is now in administration.
Scores of people claim IAP sold them properties which they could not get sufficient rent for or sell for a profit, leaving many buyers in financial difficulty.
However, IAP says many other clients have been able to break even and points out that property is a long-term investment.
...Maurice and Anne Brohn, from Manchester, bought flats in Florida and Brighouse, West Yorkshire, in 2005.
Mr Brohn says the Brighouse flat was discounted from £142,000 to £125,000.
However, two estate agents contacted by the BBC say the property would not have been worth more than £125,000-£130,000 at that time.
The property is now valued at £110,000-£115,000. The Brohn's Florida apartment, which cost $196,000 is being sold for $130,000.
The couple say they have lost thousands of pounds and have had to sell their own home.
"The situation is that desperate that bankruptcy is a very strong possibility," said Mr Brohn.
"This is all as a result of our involvement with a company to whom we paid large sums of money to do precisely the opposite."
Face the Facts will be broadcast at 12:30 on 25 July and 21:00 on 27 July.

Why? Why? Why?

Perhaps finally people will realise that there's no such thing as money for nothing.

I genuinely understand the frustration of those who thought they were going to make a killing, but are now getting killed.

There is always a bigger, smarter shark in the water.

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Why? Why? Why?

Perhaps finally people will realise that there's no such thing as money for nothing.

Tell that to the CEO of any major bank..

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Perhaps finally people will realise that there's no such thing as money for nothing.

Money for nothing involves STR during the boom and buying back in after the bust.

You have to have patience and be prepared to look like a renting idiot for a few years. Patience I have learned, but the look of idiocy came naturally.

This STR->Buy method really is money for nothing in my opinion and more importantly, low risk. (lower risk than holding on during the latest stages of the boom)

VMR.

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I genuinely understand the frustration of those who thought they were going to make a killing, but are now getting killed.

There is always a bigger, smarter shark in the water.

Fact remains that quite a few people did make big profits by 'flipping'. It's those who now face ruin who seem to attract so much venom.

Having said that I do despair at supposedly intelligent people who did absolutely no research of their own on prices or rental income, often never even looked at the area they were buying into, let alone the actual properties, and simply believed all they were told.

If a thing looks too good to be true...

If not for the likes of Equitable Life and Gordon's savage raid on pension funds, I doubt the BTL business would ever have taken off as it did.

So many people simply ceased to trust 'proper' pensions managed by fat cats who'd always get their massive payoffs regardless of what happened to the little people's money.

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I genuinely understand the frustration of those who thought they were going to make a killing, but are now getting killed.

They thought they were joining a pack rape only to discover just now as they drop their pants that they are the victim.

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Okay... time to have a go at the borrowers again...

I seriously hope someone asks the borrowers something along the lines of...

"Did you, and be honest, really not for one second worry that you were being lead down the garden path by some very, very clever salesmen? I mean, did it not occur to you that people in possession of the Secret of Making a Fortune From Property would be using said secret and doing just that, not wasting their time giving seminars for a few grand? Oh, and can I have your wallet please? I'll give it back, honest!"

Inside Track went down the pan, and so will many of their "customers". Tough ******s to the lot of 'em.

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""Mr Brohn says the Brighouse flat was discounted from £142,000 to £125,000. ""

this is where this chap made his mistake. he didnt think that a price for a flat in brighouse mattered compared to local brighouse wages.

he wanted to believe this and so lost his shirt. i hope he goes on to lose his own home and then has to rent of another btl landlord.

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Why? Why? Why?

Perhaps finally people will realise that there's no such thing as money for nothing.

Money for nothing see the job description of any CEO, that's money for nothing.

In fact in some cases it's money for screwing up which I suppose isn't nothing, but at least nothing is neutral.

http://business.timesonline.co.uk/tol/busi...icle2839285.ece

Charles "Chuck" Prince, the deposed head of Citigroup, is in line to walk away from the Wall Street giant with a total pay, perks and shares payout worth just under $100 million, it has emerged.

The payout for Mr Prince, who stays on as a consultant until the end of the year, include a pro-rata cash "incentive award" currently estimated to be worth $12 million.

It also includes $10,716,469 in restricted share awards and $16,046,703 in stock options that will automatically vest at his departure.

Mr Prince, whose exit was sealed late last week, already owns 1.61 million shares in Citi, currently worth about $53 million.

And then you would have thought after this failing no one would touch him

http://www.bloggingstocks.com/2008/07/11/w...d-of-directors/

Xerox Corporation (NYSE: XRX) announced yesterday that it had elected Chuck Prince to its board of directors.

Yes, that Chuck Prince: the one who presided over a rapid decline in Citigroup Inc (NYSE: C)'s financial position and was forced to step down in November -- with $94 million in stock, a $1.74 million pension, and other assorted goodies. Then he was hauled before Congress to explain himself.

So you fail spectacular and bring the global economy to it's knees and another retard company what's to high you. As I said CEO and their cronies get money for nothing.

Also see Blair advising JP Morgan on globalisation, now that is money for nothing.

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""Mr Brohn says the Brighouse flat was discounted from £142,000 to £125,000. ""

this is where this chap made his mistake. he didnt think that a price for a flat in brighouse mattered compared to local brighouse wages.

he wanted to believe this and so lost his shirt. i hope he goes on to lose his own home and then has to rent of another btl landlord.

Did he not suspect something when they discounted it from 142k to 125k when all we were hearing was 'house prices only ever go up'??

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It was a big confidence trick. The (thankfully now defunct) seminars subjected you two days of indoctrination. One of the central themes of the Inside Track brainwashing was that "you've made the profit when you buy a property not when you sell it". This is drummed in repeatedly throughout the 2 days. Now this is clearly daft, but if you can get people to believe this assertion, you have then opened the door to sell them anything as long as you make them think that you have already locked in a discount.

What the seminars where doing, in effect, was to prepare the lambs for the slaughter: Inside Track being the farmer and Instant Access Properties being the abbortoir.

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I feel sorry for the people ripped off by these companies. My pension fund's actually shrinking, and if I didn't have a final salary pension to back it up I'd be really worried about my future.

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I feel sorry for the people ripped off by these companies. My pension fund's actually shrinking, and if I didn't have a final salary pension to back it up I'd be really worried about my future.

I can sympathise with the conned, too, but from another thread:

"1FC: Advertisements offering money-for-nothing deals - for example, "Instant Equity when you purchase our flats at £20k below market value", or "become a millionaire without working" are 100% reliable and should always be trusted.

1FD: If the above offers turn out too good to be true, those taken in by them have a right to sympathy and should never, ever, be criticised. "

Edited by dryrot

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Huh? If these people had spent 10 minutes on the internet doing some research , or a little longer to visit the area where these flats are, they would have easily figured out the offers of discounts and high rentals were nothing more than a scam.

What's the old saying?:A fool and their money are soon parted. These people closed their eyes, turned off their brains, and bought these places out of either sheer greed or stupidity, or more probably a mix of the two.

So how can anyone feel sorry for them? No one forced them to sign the flipping contracts.

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Having said that I do despair at supposedly intelligent people who did absolutely no research of their own on prices or rental income, often never even looked at the area they were buying into, let alone the actual properties, and simply believed all they were told.

If a thing looks too good to be true...

Absolutely.

But you can't con an honest man. A scam has to involve willing participants or it won't work. For these people, their overriding desire was greed.

Too bad they didn't do a little bit of homework.

In all of mankind's history, information has never been so freely available as it is now. We MUST avail ourselves of it, because it's there, literally, for the taking.

It never ceases to amaze me how much effort people will go to, to share their knowledge. For the vast majority there is no reward, but they go ahead and do it

anyway, because, in people who aren't greedy, the desire to communicate is greater than all else.

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But you can't con an honest man. A scam has to involve willing participants or it won't work. For these people, their overriding desire was greed.

I think this is wrong; there are all manner of cons which appeal to the better nature of people, rather than self-interest (from the 'I've had my wallet stolen, can you lend me a tenner to get home?' upwards).

This con is clearly greed-driven, but cons which play on social conscience are perhaps even more pernicious because they usually end up disillusioning people with the social contract - For instance they may make people less inclined to assist those in genuine distress in future.

PS I've been reading for three or four years (and predicting a house-price crash for at least 6), but this is my first post!

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This is hard nosed but I have absolutely no sympathy for someone who is so utterly gullible that they would fork out £125k without even getting a second opinion.

Maybe it's easy to be conned and swept along by an evangelical sales seminar, I'm not sure, (give them the benefit of the doubt), but how stupid do you have to be sign up THERE AND THEN! :blink:

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A friend of mine (who is by day an accountant) got dragged to one of these seminars by his girlfirend.

after asking 2 questions in open forum which I think related to the cost of voids and repairs, and what happens if prices go down;

he was asked to leave.....

oh yes, and he also pointed out that their "projection" assumed that money could be borrowed at the bank of England Base rate - which was never going to go up, apparently (he thinks that this was the one that broke the camels back)

Edited by Dunroamin'

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In all of mankind's history, information has never been so freely available as it is now. We MUST avail ourselves of it, because it's there, literally, for the taking.

This is a excellent point.

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Buy-to-let firm faces questions

By Jessica Rose

Assistant producer, Face the Facts

BBC "News"

A controversial buy-to-let property firm that claims to offer flats for discounted prices has sold units at above market values, a BBC investigation has found.
...Radio 4's Face the Facts series has been exploring Instant Access Properties Ltd (IAP) and its sister company Inside Track Seminars Ltd (ITS), which is now in administration.
Face the Facts will be broadcast at 12:30 on 25 July and 21:00 on 27 July.

Did anyone listen to this on the 25th?

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  • 399 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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