BenM Posted June 18, 2009 Report Share Posted June 18, 2009 Hi All Has anyone tried or considered a new BTL investment method promoted by PierGroupProperty.net? I'm a newbie in BTL but it looks good for the 2009 market. Does anyone have a view on it or PGP please? Thanks Ben Link to comment Share on other sites More sharing options...
Mortitia Posted June 18, 2009 Report Share Posted June 18, 2009 Is this just another fast boy advert via the back door? Can Resident investigate please? Mortitia Link to comment Share on other sites More sharing options...
BenM Posted June 18, 2009 Author Report Share Posted June 18, 2009 Thanks Mortitia for taking an interest but I assume you don't have a view. Ben Link to comment Share on other sites More sharing options...
Gee Posted June 20, 2009 Report Share Posted June 20, 2009 Hi Ben It would help if you if you outlined the BTL method you are intersted in. My normal response is that all the methods are for the benefit of the selling company NOT the investor. Cheers Gee Link to comment Share on other sites More sharing options...
BenM Posted June 23, 2009 Author Report Share Posted June 23, 2009 Hi Gee Thanks you for your response. I want to build a small portfolio with as little of my limited funds as possible. I can afford to invest conventionally by buying one or even two cheap rentable properties under £100K, requiring my 25% deposit(s). The PierGroupProperty system caught my attention because it's so logical (or apppears to be). They are not selling property, just the step-by-step method of buying and withdrawing all my funding in six months from purchase. As a newbie, I was wondering if more experienced investors can see problems with this system that I can't. Thanks again for your help. Ben Link to comment Share on other sites More sharing options...
Gee Posted June 23, 2009 Report Share Posted June 23, 2009 So you buy a property with 25% deposit, which is fine, but you don't say how you get to withdraw your funds in 6 months time? What is this new method? Also what is in it for them? Introduction fees? Letting and Management fees? Mortgage introduction fees? Course fees? Finders fees? I'm afraid you will have to give a lot more detail if we are able to give any useful advice. Gee Link to comment Share on other sites More sharing options...
partrim Posted June 25, 2009 Report Share Posted June 25, 2009 Call me a cynic, but the web site reminds me of the approach often used by pyramid selling schemes – i.e. promising a ‘too good to be true’ offer using vague copy and requiring you to send off for a video. I would avoid this just as a matter of principle! As the old adage goes, “If it seems too good to be true… it probably is”! Link to comment Share on other sites More sharing options...
BenM Posted June 25, 2009 Author Report Share Posted June 25, 2009 So you buy a property with 25% deposit, which is fine, but you don't say how you get to withdraw your funds in 6 months time? What is this new method? Also what is in it for them? Introduction fees? Letting and Management fees? Mortgage introduction fees? Course fees? Finders fees? I'm afraid you will have to give a lot more detail if we are able to give any useful advice. Gee The 25% investment was what I was going to do but this system uses bridge finance for the purchase of a property needing work then my money to invest in doing it up then I get it all out at remortgage. The company is only selling 3 training modules explaining the processes in fine detail, that's all, just the system that they explain on the free video. I have signed up and have done the first two so far and they are entirely harmless without any hidden sell yet. I decided to invest £90 and it's been really good for a newbie like me. They promise to help after the seminars so I'll soon find out. Ben Link to comment Share on other sites More sharing options...
BenM Posted June 25, 2009 Author Report Share Posted June 25, 2009 Call me a cynic, but the web site reminds me of the approach often used by pyramid selling schemes – i.e. promising a 'too good to be true' offer using vague copy and requiring you to send off for a video. I would avoid this just as a matter of principle! As the old adage goes, "If it seems too good to be true… it probably is"! Thanks for your interest Mr C but I have already signed up and after 2 of the 3 training modules I am hugely impressed. Really good training seminars (but I am an easily impressed new boy at this). They are only teaching a system like others on the net but this is genuinely geared to the credit crunch. Thanks for your advice though. Ben Link to comment Share on other sites More sharing options...
Gee Posted June 27, 2009 Report Share Posted June 27, 2009 Ben This sounds like a very high risk strategy especially in a recession. Bridging (if you can get it) is a very expensive and dangerous way of borrowing, generally only suitable for a rising market. Very rarely do the costs of purchase and modernisation (including cost of bridging) not exceed the finished value, particularly in a diffficult and falling market. For you to get your money out after 6 months, I presume you would have to remortgage and hope that the new value was 20% more than the total cost of purchase and modernisation. Which I think would be impossible in todays market. I'm afraid I can only see high risk in the method you describe, which is unsuitable for a novice investor. At least so far you have only lost £90. Gee Link to comment Share on other sites More sharing options...
BenM Posted June 29, 2009 Author Report Share Posted June 29, 2009 Thanks again Gee. I have now completed the course and am quite confident that it can work because the Pier Group guys are helping. You're right that the weakest part of the process is the bridge finance because it's now difficult to get and expensive, but the course admits this and explains how to do all your finacial structure with the exit route in six months before I spend any money. They suggest that this funding can come from various sources. My family are helping because I can offer them more interest for six months than they are getting in a deposit account. Right now it's looking very good. I should also say that the course has so much good information for any first time investor that I'm really glad I did the course anyway. Regards Ben Link to comment Share on other sites More sharing options...
Gee Posted June 29, 2009 Report Share Posted June 29, 2009 I think borrowing from the family is a far better idea. Good luck Gee Link to comment Share on other sites More sharing options...
Reg Posted July 2, 2009 Report Share Posted July 2, 2009 Bridging loans and Training seminars, i've heard enough! Get involved with this at your peril Link to comment Share on other sites More sharing options...
Melboy Posted July 2, 2009 Report Share Posted July 2, 2009 Bridging loans? Well, if your a novice Landlord as you say you are I would have thought the seminar would have warned you against a bridging loan as probably being the worst way of borrowing money for rental property buying both long and short term. Mel. Link to comment Share on other sites More sharing options...
Chestnut Posted July 2, 2009 Report Share Posted July 2, 2009 It seems plenty of advice has been offered here...... and all the same!! BenM: How does your family feel? Are they in effect being persuaded to lend their money to PGP? I'm with Mr Casby on this. "Sounds too good to be true...... and probably is." Link to comment Share on other sites More sharing options...
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