Catalyst2

[miss.j]

Hi,

Has anyone used this company and do thet have any feed back about them?

Many thanks

[SuperDad]

Why on earth would you?

Hi miss.j,

Welcome to PropertyTalk.

Before you consider using a company like Catalyst2, read the Blue Chip and Merlot threads.

Also read the April issue of the New Zealand Property Investor magazine - there is an article on packaged property investments on there. While you're reading, take a look at the latest Consumer magazine.

Once you have read that info, if you still decide to go with such a company then good luck!

For those of you who want to check out Catalyst2, here is their website:

http://www.catalyst2.co.nz/

It contains quotes like the following:

Catalyst2 are independent property strategists. We can organise the entire investment process for you – From preparing an investment strategy and finding the right property for investment to organising finance, assisting in the creation of your investment vehicle, liaising with accountants and solicitors and arranging property.

and

Catalyst2 offers a complete property investment solution. However, before we begin to create your investment portfolio we must ensure that the strategy we have for you will work towards building your wealth. To that end it is important to ensure that we work smart to minimize risk. Here’s how:

• We manage the entire process for you
• We create an investment strategy specific to your financial profile
• We search for the most appropriate investment property throughout New Zealand
• We research the growth and development in the area where the property is located
• We research the rental potential of the property
• We research the building construction
• We produce cash flow projections on that property showing outgoings, income, tax savings, potential capital growth
• We organize the finance for that property
• We arrange depreciation schedules for your accountant
• We arrange independent valuations on all investment properties
• We can work alongside your accountant and solicitor to create a solid investment structure
• We organize the management of your investment property
• We work on behalf of overseas investors to build their portfolios
• We are supported and endorsed by Ray White – One of Australasia’s largest and most respected Real Estate companies

We Do not Charge for any part of this service

This kind of talk should be setting off alarm bells.

Paul.

[SuperDad]

Actually, Catalyst2's claim that

We are supported and endorsed by Ray White – One of Australasia’s largest and most respected Real Estate companies.

makes me wonder whether they are involved in this practice?

Paul.

[Jumpin]

Hi Miss J,
welcome to the forum. SuperD is right, I can hear the alarm bells from here.

[miss.j]

Thank you for the feedback.

About two months ago i became interested in property investment after reading a book by Jan Somers. Being very green in the property game - I was trying to find as much information as could. I came across this company and signed up for an info pack about 6 weeks ago. The info pack was just glossy marketing. To make a long story short. I got a phone call from them and before i know it, the appointment for us to meet was made.

I have had many late nights reading all the threads on property talk trying to learn as much as I can from everyone experiences - hence the reason i asked here first.

Many Thanks

[exnzpat]

Miss,

Run, run, and run some more.

There is not one thing on their help list that you cannot do yourself – for free.

A real-estate agent will help you find a house (advice and time free of charge).

A bank will help you, and guide you with the financing (advice and time free of charge).

No one actually needs a Property Investment Organization to be involved in property investment!

With a little leg-work, savvy and some basic knowledge of the banking system (and mortgage structure), all of which is free, none of it complicated – and you too can be a player -- if you dare.

[Dean]

Hi Missj, I no abit about Catalyst 2. Basically they source houses from developers, sometimes with a conditional agreement to purchase or just a listing. Included in this price you pay the developer is their fee. It is between $20 - $30k. So, you are paying for their services, they can't do it for nothing . The deals they offer are as good as their ability to source stock. Given that they do not purchase stock to onsell , the deals offered might not be that sharp.

[Jurgs]

And them sourcing an 'independent valuation' for you is an oxymoron if ever I heard one.