Agent's anger at Making Money from Property seminar

News Category: Industry News

An estate agent who went to a ‘Making Money from Property’ seminar designed by a TV property expert has spoken out against the advice given. She said it was reckless to suggest people could simply whack property purchases on their credit cards, and gave out precisely the sort of messages that caused the last housing market crash.

Carolyn Mellor, managing director of homes4u in Manchester, said it was tantamount to a ‘get rich quick’ scheme, appearing to offer investors a quick and easy way to make money from property. 

The seminar, a free two-hour introduction to paid-for workshops, was designed by Martin Roberts, TV’s Homes under the Hammer presenter, although it was given by a 27-year-old South African Ryan Pinnick.

Mellor said: “I was very shocked at some of the advice that was being handed out at the seminar I attended. Actually, some of it was downright irresponsible.

“The main area of concern was that people were being told they didn’t necessarily need savings or cash to buy properties at auction. In fact, the advice was to whack the property on your credit card.

“It was this type of irresponsible behaviour that contributed to getting the country in so much financial difficulty in the first place. I simply couldn’t believe what I was hearing.”

Mellor was also concerned about advice surrounding the controversial areas of sale and rent-back, and lease options.

She said: “There seemed to be an acceptance that the lease option was a great way to make good money quickly, but responsible property investors would like to see activity such as this decreasing, rather than increasing.

“As an industry we must all learn from the recent past and I welcome the new clampdown from the Government in relation to sale and rent-back investments. But the advice I heard seemed to be encouraging investors down this route.

“I believe that to be irresponsible and I was astonished this sort of advice is still being peddled.”

She said responsible agents advise customers at no cost, with “no need to attend seminars costing upwards of £500 giving out reckless advice”.

Martin Roberts, who designed the seminars for Tigrent Learning, promoted them with flyers saying that banks and building societies “are desperate to unload the mountain of bargain properties on their books fast and at rock-bottom prices”.

He says investors do not need money: “Contrary to popular belief, almost anyone can invest in property, regardless of their financial situation.”

A spokeswoman for Tigrent said: “My client is not and never has been delivering any form of ‘get rich quick’ scheme. No properties or schemes are sold on during trainings. So any reference to ‘get rich quick’ is not only incorrectly cited and slightly offensive but we find it rather degrading to all the successful students who have worked extremely hard on their success.”

Martin Roberts himself said: “I have been working with Tigrent Learning UK for the last four years and am disappointed that your reader took away a negative view of one of my free preview events.”

He went on: “In relation to your reader’s specific points about credit cards and lease options, I am sure you will concur that no property investment strategy can be taught in full within two hours, nor should it be tried (or indeed ‘judged’) by a customer after a mere few hours’ free introductory seminar.
 
“In fact, our objective during the free preview seminar is to open people’s minds to the potential opportunities that exist for a well educated investor. 

“‘Get rich quick’ schemes do not and have never formed part of our vocabulary nor delivery. What is presented within the two-hour seminar is an example or multiple examples of investment strategies that are live and true, that have been carried out by our customer base, with successful results. 

“Using a credit card or a lease option are two of many creative investment strategies available to the aspiring and experienced investor, and they will and do reap rewards, if carried out responsibly, with the right guidance. Using a credit card to purchase or support the purchase of a property or business deal is quite commonplace.

“A lease option strategy can be a good vehicle within today’s marketplace, particularly for the first-time buyer. 

“What is important to note when referring to any investment strategy is that people need to know what they are doing, with the correct training and guidance.”


Article courtesy of Estate Agent Today Sign up for EAT newsletter