THE MYTHS OF GUARANTEED INVESTMENT PROPERTY
You’ve probably seen web pages with enticing offers about guaranteed investment property in Florida:
Double your money in two years!
Pay us $5,000 up front now you’ll get $50,000 in rentals!
Well, we can’t over-stress this:
Watch out – if it seems too good to be true, it probably is!
Florida is a great place to buy a piece of real estate, and guaranteed investment property is a fabulous goal – but you need to be more wary about these offers than almost any other purchase you’ve ever entered into.
Need more convincing? Here is an extract from the Orlando Sentinel on April 29th 2006:
Kissimmee attorney receives 5 years in prison
A suspended Kissimmee attorney has been sentenced to five years in prison for his participation in a fraudulent investment scheme.
- Craig Wakefield must pay victims more than $220,000 in restitution after pleading guilty to one count of racketeering and a count of securities and investment fraud.
Wakefield . . . . solicited investors from all over the country, telling them they would receive a “guaranteed” return of 10 percent to 12 percent on their investments. Wakefield and his accomplices collected more than $376,000, but the victims never received promised returns.
This is just one example. Nearly 10 years on from that example, the risks are just the same and the promises just as disingenuous.
Need more convincing? Well, don’t take our word, how about the US government. Check out this SEC web page that includes the fairly plain advice:
Be highly suspicious of any “guaranteed” investment opportunity.
This is targeting financial and stocks and shares schemes, but the principles are equally as valid for real estate investment. And when it comes to Florida, we’ve seen many otherwise-careful buyers suspend their judgement because of the lures of the the sun and the lifestyle.
So . . . . you have been warned!
We strongly believe that, whether it’s Florida investment property, company shares or whatever, the promise of guaranteed income is more than likely a high-risk lure. And that’s whether you are talking to an attorney, a Realtor or anyone. We also believe that it’s illegal under Florida law – but do let us know if we’re wrong on that!
WHAT OUR CLIENTS SAY:
Very excited by our new purchase and cannot thank you enough. You were such a help through very unfamiliar territory. Would be more than happy to act as a reference any time.
G.K., Kent, UK
You helped us from start to finish and beyond . . . from finding and choosing the plot through to furnishing the house and helping to set up the utilities once we had closed on the home – a “one-stop shop”. You made it all so smooth and trouble free for us. We were so far away in the U.K. . . . I don’t know how anyone does this without your help.
B.R., Derby, UK
Chris helped me to build my real estate holding from 0 to 5 homes worth almost $1 million dollars in just over 3 years, including 3 Disney Orlando Vacation homes. All were sold for a profit, which I give credit to Chris, who knows the Florida Real Estate market so well.
Anne S. Orlando
It looks so easy from the Internet sites. And some other Realtors play down exactly what is involved. What Colin showed us and what he did meant that we were kept informed at every stage. He made sure that we knew what we needed at each stage, from buying through to setting up the home and managing it the most effectively. We want to thank him for everything.
V.B., Exeter, UK
We just want to say how much we value the work that Colin did for us. His advice helped us to avoid what could have been some big mistakes and he showed us how to find the place we were looking for – or rather, the home that best fitted our plans both now and in the future. It’s amazing, looking back, how much Colin’s challenge to our preconceptions changed our thinking. I’m delighted both that we were referred to him and that he continues to give us support when we require it.
R.H., Oxford, UK