How does this work?

King_Of_Bling

Got this in my email today, how would it work?

Build a cashflow positive property portfolio with just £20k.

At a recent workshop one first time investor commented that he would like to grow his portfolio but that he had simply run out of capital for deposits. We were surprised when looking round the table to see how many investors felt that they were in a similar predicament.
Fortunately another attendee jumped in and described one simple technique he had picked up to get round this all too common obstacle and secure his financial future starting with as little as £20K. This straight forward, no nonsense model allows the investor to buy, build in equity if possible, and remortgage in 6 months, freeing up the deposit to be used in the next investment.

BitterAndTwisted

Who knows? Sounds like cobblers to me but I'm certain that these shysters will charge you a fee to find out.

FTBFun

Its just another scam to con people who want to make lots of money for little hassle.

maginot

It would work, by you paying them a large sum of money and then finding you have a negative equity portfolio and so unable to borrow any more money. Then the business you paid goes bankrupt and starts again as a new business leaving yourself to either declare bankruptcy or lead a stressful life as a landlord, worrying about bills and have no security for yourself and family.

DannyboyMidlands

Wow, that sounds too good to be true but I'm sure it's great idea. You should probably pay them some money to find out.

pararct

Inside Track operated a similair model.. It is a scam albeit a legal one and relied upon continually rising house prices and leverage against accrued equity to work.

http://en.wikipedia.org/wiki/Inside_Track

Of course like any pyramid scheme as soon as the market turned it all went pear shaped and they went bust...

sonastin

The way it works is they pay a few quid to buy a list of e-mail addresses and then send out thousands of e-mails in the hope that a few gullible people bite. It would probably only take a couple of takers to cover the cost of the e-mail list and then the rest is pure profit. The gullible folks hand over some hard earned cash to get a lesson which will fall somewhere between "stating the obvious" and "utter bollox", depending how much conscience the organisers have. What happens after that is largely left to chance as the originators of the scheme have already made their money.