The real estate industry is a very crowded marketplace, with sales agents, property educators and spruikers all vying for your attention.
Some are in the industry to help others create a better life. For me personally, I’m passionate about education and I’ve experienced the benefits that property investing can deliver. I love sharing my knowledge and experience (and mistakes!) with other people, so you too can have the lifestyle of your dreams, and that’s what motivates me to do what I do every day.
But others don’t have the same intentions. Unfortunately, there are many sharks and spruikers out there who have one goal and one goal only – to make themselves richer.
When you’re researching who you want to partner with and learn from on your property journey, it’s crucial that you learn how to spot the spruikers.
Here are some telltale signs:
1. They’re trying to sell you something
If someone has a vested interested in lining their own pockets financially as a result of the advice provided to you, then you can bet the advice you’re receiving is not objective or impartial. At Real Wealth Australia, we don’t sell real estate. We don’t suggest you buy in any specific estates or developments. We don’t even recommend locations you should buy property.
Instead, we focus on educating and empowering you, so you can make smart and informed decisions for yourself.
2. They get a ‘kick back’ if you invest where they tell you to
There are loads of property developers who are trying to sell their stock to investors and homebuyers, and that’s perfectly fine. Where I have a problem is when these sales people dress themselves up as “property experts” or “investment educators”, as it’s entirely misleading.
They gain your trust by leading you to believe they’re offering impartial advice, when really they just want you to buy the property they’re selling (regardless of whether the investment suits you), as they make a $20,000-$30,000k commission on each sale. These types of schemes are prolific.
Legally, you must be informed of any money a sales agent stands to make from a real estate sale, so don’t be afraid to ask questions if you’re beginning to get suspicious.
3. They’re only promoting one strategy
Is the property investment advice you’re receiving based on following one single, formulaic strategy? If so, that’s a red flag, because often the spruikers that tell you that you should only buy one type of property (such as cash flow positive) are only doing so because that’s the stock they’re trying to push!
4. They sound to good to be true
What is the problem with many property spruikers? Well, they look, sound and act like such nice guys! This can make it really tricky for the average person to know who to get advice from, as there are “wolves in sheep’s clothing” who claim to be acting in your best interests… but who are ready to take your money without a second thought about your welfare buy generic doxycycline.
To spot property spruikers and suspicious schemes, be aware that you’ll have to review them on a case-by-case basis. Some cases are widely reported in the media, but at other times, you’ll only have your own gut instincts to go off.
In my experience, asking questions and educating yourself is one of the best defences against getting ripped off. Ask to see references or speak to other clients; check their history or record of performance; consider their level of transparency in dealing with you. These are all clues about the integrity of the organisation – and the people there who claim to want to help you reach your goals.
Til next time, happy investing!