Dodgy Dealers - article by Olly Newland

[donna]

Hi All,

I have just read a well-written article by Olly in the Empower Education newsletter - here is an extract and link to read more

PROPERTY IS, by its very nature, a big ticket item. It's no wonder then, that the property game attracts a variety of scam artists and fraudsters, as well as those who just push the ethical envelope whenever they think they can get away with it.

We have all seen or read the suffering of those who have been caught up in dodgy deals. The likes of BlueChip, Merlot Investments, and the real estate agents from the respected firm of Barfoot & Thompson who abused their position in a multimillion dollar mortgage scam -- to name a few.

As unappetising as it may be, it's necessary for you as an investor to know how to recognise the 'dirty tricks' of the property game. A little knowledge -- and a vigilant mindset -- will help you stay out of the clutches of those who would do you financial harm. Pay attention, lest one of these type of deals is ever presented to you.

Property finders and Sandwich deals
Traditionally, property finders -- sometimes also known as buyer's advocates -- are licensed real estate agents who specialise in seeking suitable properties for their clients, who may not have the time or inclination to look for themselves. This is a legitimate and very useful service and is widely respected, especially overseas in larger markets where the selection is enormous.

In New Zealand this profession is fulfilled by local real estate agents on a smaller scale.

Unfortunately, scam artists have climbed aboard in NZ and, trumpeting themselves as property finders (although NOT actually licensed agents), are playing a game called 'sandwiching'. Their objective is to simply insert themselves between a legitimate seller and a legitimate buyer with the aim of picking up a quick profit.

Read more

cheers,

Donna

[Dean@Massiveaction]

Yeah it is a bit sad. The hydraulicking part is entirely true, I talk about that too.
But to attack finders who in most cases are helping vendors out of trouble and attacking them like getting paid for their skills is a crime?? Weird.

They are a much more ethical lot than agents % wise, that's for sure.

[f1speedman]

Agreed, seems a little out of character for Olly to take this stance so aggresively.
He's tarring everyone with the same brush.
A little more homework and exposure to people out there doing a good job would be advised next time!

[k1w1]

Traditionally, property finders -- sometimes also known as buyer's advocates -- are licensed real estate agents who specialise in seeking suitable properties for their clients, who may not have the time or inclination to look for themselves. This is a legitimate and very useful service and is widely respected, especially overseas in larger markets where the selection is enormous.

In New Zealand this profession is fulfilled by local real estate agents on a smaller scale.

Where is this tarring everyone with the same brush? I thought it read quite clearly. The next bit goes on to say that the dodgy operators have joined in. He might have advised how you go about telling the shysters from the good guys.

Still a cynic would question whether an agent could ever really be called that?

[Austrokiwi]

It was an interesting article to read............. made me wonder whether a seller could actually sell an option to a house..... ie if these property finders what to on sell the house sell them a 2 month option on the house for say $20,000. If they on sell it great yoif they don't you keep the $20,000.

[Bluekiwi]

I thouught it was quite funny, me-thinks he might have been having a go at you Dean

[chook]

Yes a bit Hypocritical, especially after reading one of Ollies books where he was onselling so much property, he was just signing S & P agreements and letting agents negotiate the price. and Ollie "never had any intention of viewing the property"!! (ahem!)

[markw1]

Why is olly held in such regard. Most of his peers from the 87 crash and well and truly wealthy again while olly bags almost anyone and everyone. it must be a sad life for olly. Im guessing he lives alone and has very little friends.

[k1w1]

What? He only makes friends with midgets?

[PeterEmpowerEd]

What? He only makes friends with midgets?

<snort> Yes, I had the same thought: Or pygmies??

As Spike Milligan used to interject on The Goons: "I resemble that remark!" (I can't do the voice.)

[tpr2]

What? He only makes friends with midgets?

that bought tears to my eyes...well done.