Less than two years after it collapsed into administration, the men behind the notorious buy-to-let property club Inside Track are back, targeting UK investors with a new get-rich-quick property scheme, the FT reports.
Promising that members can “make £100,000+ in five minutes”, a nationwide programme of seminars has begun to recruit investors eager to participate in the UK’s next property boom. The new company, IAP Global, was set up by Inside Track founders Jim Moore and Tony McKay when their former business collapsed and has access to a database of 25,000 of Inside Track’s original investors.
Participants are being encouraged to part with fees of more than £40,000 to acquire a portfolio of five UK properties from distressed developers, with IAP Global acting as the middleman.
In a flashback to the boom years, the company promotes high-risk financing methods such as using bridging loans as deposits, in the belief that rising house prices will enable a more conventional refinancing in the future.
The new pitch to investors follows seven consecutive months of rising house prices and a higher potential return from buy-to-let rents than low interest rates on bonds and cash deposits can offer. Moreover, demand for rental property is buoyant.
Investors in IAP Global’s properties are promised a discount to market value of at least £25,000 on each property, described by the company as “instant equity”. However, market evidence obtained on properties featured in their sales presentation suggests such discounts are questionable.
Let's be careful out there folks, remember, if it sounds too good to be true it is....
Until the next time,
Mr Jackson.
Posts
