There are many people making money from property investing, but rarely is it investors that choose to invest with Property Syndicate Groups. Many people are becoming targets of these property syndicates that promise high returns on money invested but many have already found out that this is not the case.
Property Syndication groups have been around for many years and are now attracting attention again with many people left unhappy with results based on the funds they have outlaid.
The trouble is that many investors are seeking instant results to gain a profitable property portfolio and have become targets of various property syndication groups who promise these results as long as the investor is willing to outlay the funds.
Australian Rick Otton has been investing in property in the United States, United Kingdom and Australia for over 20 years, and he knows the dangers.
“When it comes to property” explains Mr.Otton, “Many people want to go fishing but want the fish caught, prepared, cooked and put on the plate in front of them and for that, they are prepared to pay a substantial amount of money to have it done by someone else.”
Otton for years has discovered that many people have put their money into syndicates to get instant results and of course have ended up paying more than retail for the properties they purchased simply because they didn’t take the time to educate themselves about what they were investing in.
Research into the background of a property syndicate company is imperative before money is invested, Otton advises that these three questions are investigated: How much is the investor prepared to pay for the service? How risky is this opportunity? When will the profit be realized?.
“With property syndicates you’re putting your own hard earned cash on the table, while they are not investing any of their own money,” Otton continues. “There is a big psychological difference between people investing their own money versus using other people’s money.”
Though Otton has never invested in a property syndicate company he has partnered in property joint ventures and has found that when a joint venture partner has used all of his money and none of their own, the transaction result was not as profitable as originally promised. “When the other joint venture partner invests their own money into the transaction as well, the profit would result as equal or surpass the original estimate,” explains Mr. Otton.
Because most syndicate groups don’t invest their own money, this means a investors dollar investment is at risk and if the syndicate falls apart and goes bankrupt, it doesn’t matter to them because it wasn’t their investment or ‘life on the line’ so to speak.
Otton recommends being an active participant in property investing. “Get some knowledge, pick a place and start,” he says. That way active or passive property investors are able to make decisions from an informed place and not from the sidelines. He shares his strategies in his books, homestudy courses and 3 day live training boot camp.
About Rick Otton:
Rick Otton is an original pioneer of creative property strategies. He is founder and CEO of We Buy Houses, a leading property enterprise which operates in the property markets of the United Kingdom, New Zealand, USA and Australia.
In 1991 he uncovered an innovative strategy of buying and selling real estate and went on to amass a portfolio of 76 properties in his first twelve months of active investing.
Since 2001, Rick has taught over 30,000 students to buy, sell and trade residential property without banks, debt or risk. By employing these same strategies many of Rick’s students have made over a million dollars a year in cash and equity, using little or none of their own money, year after year.
He has appeared in the 2004 ABC documentary ‘Reality Bites’ and on Today Tonight, Insight and A Current Affair. In October 2007 Rick gave a way a house on national TV during 2 episodes of Channel 9’s Hot Property.
Rick Otton has also been featured in Australian Property Investor, Lifestyle Trader Magazines and in the books: The Secrets of Property Millionaires Exposed!, Ideas: Original Perspectives On Life and Business From Leading Thinkers, Think and Grow Rich in Property, Insider Property Secrets, and Walking With The Wise.
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