Beware! Inside Track Resurrected
David Boyd, Managing Director, PAD4U Letting Agents Manchester writes:
Jim Moore, who could never be described as having a lack of confidence, has setup a new vehicle for his property investment club called IAP Global. Mr Moore's preceding companies Inside Track and Instant Access Properties(IAP) collapsed into administration owing creditors millions of pounds. In it hay day it is claimed that more than 100,00 people attended seminars enabling the property club IAP to sell some £3bn worth in properties. IAP Global is again targeting the UK buy-to-let investor.
Towards the end of a glitzy seminar IAP Global fees are revealed. A finders fee of £37,000 is requested for finding 5 "under valued" properties. I find it incredible that landlords will pay this sum of money in fees to a company to find properties in UK. Although I don't dismiss finder's fees completely, these fees are incredibly high for such a service. Landlords would do better to do their own homework online or discuss with their Agent options for carrying out bulk deals if they are available.
Buy-to-let still hasn't lost it's appeal despite the credit crunch, but as always this brings with it opportunities for companies like IAP Global to profit handsomely from this appetite. Although finders fee's are appropriate in some circumstances for finding genuinly undervalued property. Buy-to-let investors must be aware that the buck stops with them and they will need to do their own research before using such services. Tred carefully.