Rent2rent scam. Losing sleep

Martico

One thing you could ask him is that if these companies are so sure of guaranteeing a 30% return on investment, why on earth do they need his money? It would make more sense for them (in the non scammy real world) to reinvest their own massive profits

money11111

It looks like it was mostly social media, which is my concern. He is still getting spammed by WhatsApp groups as I see them coming up on his phone. He is very prickly if i try to takk to him and just says i don't understand and basically tells me the sales pitch. It's only when i tell him that he must know it's highly risky otherwise he would be telling friends and family to join (which he isn't) that he is then slightly sheepish.

One is Rent2Rent Global, one is Unique Property Group.

jimjames

Is it definitely those companies he's dealing with? Unique Property makes no mention of R2R and only about selling houses? Is it possible that a scammer is using their details and it's not actually them?

https://www.u-p-g.co.uk/our-story/

R2R Global has been in existence for less than 12 months so is in the highest risk in terms of investment as no track record and have yet to file any accounts. Owners have only put £2 into the company so have no stake at risk.

https://find-and-update.company-information.service.gov.uk/company/14885995/filing-history

Malthusian

daveyjp said:

It probably isn't a scam and 30% returns may well be possible.  

If someone off the Internet offers you an investment paying 30% per year it is most definitely a scam.

If you had identified a chance to make 30% in a year you would invest your own money, take out personal credit, or raise money from friends and family, while keeping as much as possible for yourself. Not offer it to random people on the Internet.

If you were offering someone else "at least" 30%pa interest, you would have to be making returns much higher than 30%pa. Or what's in it for you? 

Turn a monthly rental property in a HMO (£100 per room per week) into an Air bnb daily charge (£50 per night) and you may see huge returns, unfortunately the returns aren't guaranteed. 

If it's that easy why isn't the original owner of the HMO doing it themselves? AirBNBs can be more lucrative than HMOs (which is why there are so many news articles about AirBNBs pricing out renters) but they have higher running costs and you need to put in a lot more effort, and there are long stretches of the year where you might not earn anything.

There may well be properties somewhere in the UK where this is possible and where the existing owners are too clueless to take advantage themselves, but not enough of them to start a business which pays investors 30%pa.

If someone on the Internet tells you that if you send them your money they can turn HMOs into AirBNBs and pay you 30%pa out of the operating profit, it is a scam.

money11111 said:

Thank you for the links. I am considering talking to his parents as he invested some of their money, but I'm concerned about worrying them unnecessarily because, as one poster said, it might turn out fine.

It won't turn out fine, and I would be more concerned about not worrying them unnecessarily. Losing his parents' money - and his relationship with them - could be worse than losing his own money.

I realise that approaching your partners' parents behind his back is awkward. But a neutrally phrased message along the lines of "I'm worried about this investment X is making and think it might be a scam, has he talked to you about it" would still be a good idea and avoids accusing him of anything. It's possible that they haven't drunk the Kool-Aid in the same way he has; they have invested because they trust their son, rather than because random people on the Internet were promising mega-high returns. If they brush you off and say they're sure it's fine, you will have done all you can.

I echo other posters' advice to sever the joint tenancy (if it's not already tenants in common) and ensure as much of your funds as possible are outside his reach.

LHW99

money11111 said:

Thank you for the links. I am considering talking to his parents as he invested some of their money, but I'm concerned about worrying them unnecessarily because, as one poster said, it might turn out fine. I just don't want him risking any more money. I'll call the numbers thank you.

It will be a difficult conversation, but whether these are scams or not, he shouldn't be able to invest his parent's money. Does he have / have gained access to their accounts, and are they aware of what has happened to their money?

One possible way of approach would be to make sure that your and their own savings / income is not accessible to him.

If you find you need legal help, some home insurance policies include free access to a legal advice helpline - it would be worth checking yours.

Eyeful

Here is what three checking sites think of Rent2Rent Global. It is not good news
https://www.scam-detector.com/validator/rent2rentglobal-com-review/
https://www.scamadviser.com/check-website/rent2rentglobal.com
https://www.scamdoc.com/view/1800805

Zoe02

Are the companies regulated by the FCA?

Try to convince him not to invest anymore until you find out they are actually genuine.

He can invest in property directly, he can invest in low cost funds etc but careful so much scam nowadays.

Albermarle

Is it definitely those companies he's dealing with? Unique Property makes no mention of R2R and only about selling houses? Is it possible that a scammer is using their details and it's not actually them?

https://www.u-p-g.co.uk/our-story/

I think it is the 'unique' company below that the OP refers to. Promising 20% returns and your investment 10% safe..........


Give Back To Get Back - Unique Property Investment Group (theuniquepropertygroup.co.uk)

friolento

Damn, I missed their hyper-secure monthly income!

Unfortunately, OP is right, it's a scam, and she should follow the advice to separate her finances from those of her partner. Who knows, may be he is part of the scam. In any case, good luck to her

NB. Have reported that website to Actionfraud

jimjames

Albermarle said:

Promising 20% returns and your investment 10% safe..........

Maybe a typo but 90% not safe sounds about right