investing in property refurbishment companies...

dealer_wins

Its an extremely high risk investment. If you like having no FCA protection, and are happy with the very real risk of losing every penny, then go for it.

doe808

10 years experience in this sector (on the legal side of things for both banks and developers). Would not go near an opportunity of this nature with my own money.

verybigchris

xyz111 wrote: »

http://www.elitepropertysolutions.co.uk/investment/

Their website says: "We use a lump sum to purchase properties, and then depending on the type of option you choose we’ll either buy properties to let or re-sell for a profit. The properties we buy range from family homes to converted commercial buildings that are then rented out to multiple tenants. “Flipping” is another strategy you may have heard of-this involves buying properties at a low value, refurbishing them and selling them at a far higher price." (my emphasis)


Their published accounts on Companies House show no evidence of any property sales. There's £214k of new freehold property, with zero disposals. There's also £294k of directors' loans and £93k of other creditors, giving them negative net assets of £122k.


Not one for me. Can I ask how you came across them?

dividendhero

When there's a myriad of legitimate and regulated investment products and despite all the warnings - why on earth do people keep falling for these ostrich farms/shipping container/fine wine etc scams?

shinytop

Because they claim 10% return and the myriad of legitimate ones don't?

Malthusian

Someone showed me a Prudential pension statement recently. The investment was in 1988 and was in a With Profits fund with a "guaranteed" 4% growth rate. Prudential actually did much better than that, and due to a terminal bonus, the pension is currently sitting on an 11.2% per year compounded return over 20 years.

This was for a regulated, diversified, relatively medium-low risk investment where the only risk of permanent loss was a permanent crash in the markets, catastrophically poor decisions by Prudential fund managers and Prudential itself doing an Equitable Life (defaulting on its guarantee).

Too good to be true?

Obviously we all know that you can't say that any mainstream regulated investment or any fund in existence will deliver 10% annual returns in the future, starting now. The Prudential fund is in a minority of funds which has done exceptionally well over a very long period, and its best returns will have come from the late 80s and 90s, from economic conditions which no longer apply. 10% is not a realistic rate of return for anyone to count on in their financial planning.

But the great irony is that regulated companies which actually can deliver 10% annual returns (can in the sense of "might possibly", not "are able to") can never ever tell you that they can, because it would be misleading. Whereas companies which claim that they can deliver 10% annual returns are far more likely to lose all your money forever.

Companies which can in theory deliver 10% annual returns are subject to a strict compliance and regulatory regime which prevents them from advertising what they can do without making it clear to customers that they could also in theory lose all their money, even though they almost certainly won't unless the customer does something extremely stupid. Companies which cannot deliver 10% annual returns and will almost certainly lose all your money can run around saying whatever the f--- they like with zero consequences.

greenglide

I had a look at their web site and found this classic

. We are contempt that we are benefiting society and want you to feel the same way.

��

Malthusian

xyz111 wrote: »

http://www.elitepropertysolutions.co.uk/investment/

No results on the FCA Register for Elite Property Solutions Cumbria Ltd. If they induced you to invest with them (without first establishing that you were a high net worth or sophisticated investor) they committed a criminal offence. Which law do you think they'll break next, and are you confident you'll manage to get your money out before they do?

MEM62

xyz111 wrote: »

its quite appealing...and company is family manged...i am not particularly thinking in this company
but generally thinking about investing in this market as returns good... i am saving for my kids but think that investing is a better and more beneficial idea...

I might view this as being closer to gambling than investing.

TBC15

xyz111 wrote: »

its quite appealing...and company is family manged...i am not particularly thinking in this company
but generally thinking about investing in this market as returns good... i am saving for my kids but think that investing is a better and more beneficial idea...

Kids won’t thank you for this one.