10 years ago I booked for a wealth seminar on one of my free evenings. It was held by a well-known Wealth Creation and Education Company – I was curious to find out what they had to offer. The 2-hour seminar cost about $70.

The goal of the 2-hour talk was to convince the audience to attend the weekend seminar. I was convinced, so I paid $700 more to attend it.

I found that the seminar was very inspiring. The two presenters were both successful developers and businessmen. They were all dressed up in their best suits and expensive watches – attire wore on purpose to show their wealthy lifestyle and how the audience can ultimately get the same.

The talk had an overall good content; they covered subjects on investment and finance which were very interesting.  

I did a lot of reading and went through a lot of seminars – I was very keen to start immediately.

I was a high believer of their strategies and I just could not wait to start building my wealth. But something held me back; I was starting to doubt them because of these reasons.

1. One of the participants asked a question and was not given an answer. It was a legitimate question asking why were they showing a case study of another country when the whole point of the seminar was to show how to invest in Sydney. The statistics in other countries and market are different. The presenter told the audience member to meet him after the talk and when directed the same question the second time, they responded rudely. It was very unprofessional.

2. All of the case studies and profit manufacturers shown were related to the UK and not Australia. Entirely different demographic, cycle, market that has different types of demand. The techniques were quite the same per investment but they were all for UK properties – even the currency on the learning books was Pound.

3. Throughout the whole weekend course, they were pitching to us the next mentorship partner – and this cost $10,000 for life. The first seminar was $70, and then $700 for the weekend seminar and finally $10,000 for a mentor who apparently would help us in buying our first property.

4. I had a chat with the supervisor who arranged the weekend course. I asked her about how much experience did she have working with the presenters. She told me that she just bought a property the week before in Canada. Meanwhile, the team leader that was supposed to train each group was someone who couldn’t afford to invest in properties and was still renting.

As you can tell, everything just felt off and it kept getting worse as I found out more. I took it as a challenge to prove myself that I can buy a property without the help of any mentors.

So as a result, I began doing my own research and bought my first home in Sydney and made another small investment.

Eventually, I found an investment company and began to accumulate more investments and real estate knowledge.

I still went to seminars to find a guru who would help me develop a strategy that would help me get better results

Finally, I thought I found a company that would give me good advice and ‘independent research’. However in hindsight, this company was similar…they were giving me biased information that supported what they were selling.

I could have done a whole lot better if I got truly, independent advice back then.

Not information that supported the sale of a particular project.  

The lesson? Always take independent advice.

Property sellers are salesmen.

They would promise a life partnership and assistance to grow a person’s investment portfolio, but then they do the complete opposite.

Just like many real estate agents; they overlook a buyer’s situation and proceed to present impressive opportunities with convincing facts.

Their main goal is to seal the deal, not to help with the buyer’s investment growth in the future.

The 2nd company provided very good advice and looking back, I could make a lot of equity in cash flow after 2 to 3 years.

But I felt more secure with the good looking opportunity, the old and dry statistics and the pat on the back from the sales person that somewhat relaxes you.

After that “successful” trial, I felt more secure and purchased more properties compared to how I was before making decisions based on wrong information and wrong philosophy.

Those strategies were only suitable for people that already had a high income or foreign investors. It is a bad idea to invest in high risk locations and risky asset class. Sometimes, all we need is to do less and not get tempted.

Over the years, I kept looking at different channels and tested various techniques such as renovating to increase value, property development, liquid assets, shares and innovative companies.

I learnt valuable lessons through my success as well as my failures.

My portfolio is balanced with net profit on a yearly base. Some of the components in the portfolio compensate the others with equity and asset worth millions of dollars. By putting together the risk management fundamentals, those millions could be doubled or tripled in a shorter time frame.

If you read carefully, you can take several points that will give you something to think about. There are a lot of other positive and negative cases but I want you to focus on those as they are very crucial.

This way, you will become more cautious as there are way too many fraud cases as well as conflict of interests in property investment. If you are following the wrong firm or listening to the wrong advice, you will most likely not do well despite how charming and ‘amazing’ the offer is.

Therefore,

Always take independent advice before confirming your purchase

Do not rely only on the sales person and his pitch even if he swears that it’s not a pitch

Do not rely on inspiration, future promises and speculations

Hire a mentor only if he is independent and can provide a valuable service

Take research seriously as different markets have different risks and every suburb has its own cycle or economic facts that will dictate the growth rate. Every asset class and property configurations have their own rate. We can take something that is generic and apply it on a property. Start with that property and parallel to that, understand it and its location risk.

If your questions are not answered, don’t do the deal. Most of these speculators understand that in 20 years, we can make money from the purchases we made. They would give all sorts of explanations that sound ridiculous to experts but sounds legitimate to novices. So again, to be sure and certain, take extra independent advice.

Never take the average growth rate of 7%-8% as a default. Markets might change and the risky areas might be 0% for 10-15 years time.  Take the worst case scenario, most of the investments will do 0%. Only 1 or 2 will compensate all the others if we do not apply the risk management fundamentals before we expand our property portfolio and purchase a property.

The best advice that I can share with you is that the perfect time to invest was 10 years ago. So if you did not do it back then, then you should do it now. But make sure that you’re not just buying from a fancy restaurant for its nice ocean view and charming waitresses. Be sure that the ingredients are right, tastes amazing and price is justified. It will surely be worth the money.

This is a crucial lesson for most investors out there, only those who understand risk management or risk and return can improve their portfolio significantly. Those who are only attracted to the look and feel of the ‘special’ vocabularies used in a research won’t be able to accelerate their portfolio.

We can help you to get the independent advice that you need and offer you good value along with it. It is far better than all the other research and services that you can get today (their only attraction value are far-fetched promises decorated by flowery sentences).

Call us or send us email to info@investinproperties.com.au and you will get the answers that you need within the next 24 hours.  When you see the report and the risk that are associated with an area or a property, you will begin to understand more of what I am trying to tell you. From then on, I hope I can continue to help you understand it better so you can excel in the world of property investment.