Due Diligence - on other people , why we didn't invest

Rather than post on BG's hotel post , I'd thought I'd post some reasons why I've chosen not to invest in some situations , outside straight investment in properties .

The reality is our decision to invest had nothing to do with the specifics of the investment , but rather the person who was putting everything together .

First op was a chance to buy into a realestate agency a few years . Proposal was put together by a forum member . Proposal was very comprehensive and according to the organiser , they were told by the bank that it was the best proposal he'd seen .

Reason not to invest . First issue was the person had no management experience , but the second one was the biggie . Every time I went into the chat room they were there . I spent a lot of time there , but they seemed to live there .

Second . Navra invest . Steve Navra is a very intelligent and charismatic person . Very knowledgable about shares . Ran seminars a few years ago which gave a comprehensive way to invest which had a certain appeal to them

Reasons why we didn't invest . I have a pet hate . People who try and build them selves up by putting others down . Steve did this . Part of his pitch on how , why and where revolved around putting other places down . The reality is there are many ways to invest which can be successful . There is no one way . I am incredibly wary about some one who is in effect saying " trust me " .

Biggie came at one on his seminars . His system revolved around being able to redraw on capital growth . I asked what would happen if there was no growth and the banks changed their rules . Answer . It would be a disaster , but it'll never happen . Any system which involves " disaster " as a possible outcome was not for me .

Third . We have a friend who puts together investment syndicates for sophisticated investors . We've known him for 23 years . He starts off working in the banking sector for a number of years . after a number of years working as a senior executive in the property industry he ended up as a CEO of an listed property company , just before the GFC hit . Unlike several of his fellow companies , they rode out the storm , but for various reasons the board decided to wind up the company and distribute the funds . No fire sale , no disaster .

He's gone off with a partner to set up their own company which buys commercial properties , finances part with the banks and the rest with sophisticated investors . They're on around their forth project .

He is a public figure with an extensive easily documented career with a long track record of making good decisions . Their past properties have all been in good positions , good prices and have all done well . The info has a concise summary and then as much info as you want . Organise easy to digest .

Due to his experience , he and his partner have an extensive list of potential investors who are willing to invest in their projects . They don't need to start posting ill thought and executed posts on Internet forums .

The only reason we haven't gone with them is that we've done as well if not better when we've done our own thing .....and that has been due to the help we have had from our friends on somersof and here .

Cliff

 

Nice post Seech. Thank you for your thoughts. Something to think about when opportunities present themselves during our journey.

 

Do you know how those other potential opportunities panned out? Just curious.

 

Pain , suffering & financial loss .

Navra invest / steve Navra is still subject to litigation . Other situation is know to some long term members.

Cliff

 

Good post and timely.

Beware of anyone peddling their product/services regardless if you think they are nice. Make sure they have the right credentials and evidence to back it up. Most importantly track record as mentioned by Seech. Not everyone falls in this category of course I am sure there plenty of good people out there doing the right thing


Seech
Shame about those who lost money with Navra
what actually made him so charismatic?
This strategy he promoted LOE Did not work then and won't work today, APRA

 

I wouldn't ever consider investing in something except my own projects. This world is full of investments that you have full control over, why waste time and money and make someone else rich?

 

I went to navra seminar and used his managed fund to save up my first house deposit in 2004. I did ok from it.

He seemed like an ok person to me, but falsely thought the boom (and banks policy) would last forever.

 

Any idea how people fared with Peter Spann's funds? It seems they've all gone or been sold now, and I recall one Somersoft member being very heavily invested with him.

GP

 

All the Macquarie ones went sour as far as I know.

 

Still doing my due diligence hic .....

I've moved on from pseudo Dutch to an alcoholic ginger beer with secret seven herbs and spices .... Hic .....

Cliff

 

I'd agree . Steve came across as a nice , well informed person . First time I met him ( at " the wife's BIG BBQ " in Canberra in ? 2002 , first somersoft to gathering as far as I know ) I spent about an hour talking to him . Wouldn't have done that if I thought he was a total idiot , but I didn't come away with the feeling that I wanted to " go all the way " with him. More a matter of listening to his thoughts and asking questions .

Cliff

 

Cliff ... I too went to two Navra Seminars. I found him very interesting. My philosophy all the way through has been that no one will look after my money the way I do.

 

Hehe, similar to us.

First one was a meeting with Paul Giezekamp at his home. Hubby had met him through work somehow & got talking about where we were investing. We were invited over & a proposal was put to us. His Buyers Agency hadn't commenced at this time and he was looking for partners. While I'm sketchy on the details, it just didn't sit well. Add to that we looked at his personal portfolio, and each & every one of them were inferior deals to the ones that we'd bought during the same time frame. We thought we'd be better off without them.

We also had a meeting with Steve Navra. You say he is a charismatic person. We didn't see that side of him at all. The main reason we didn't invest was that he well & truely looked down his nose at us, especially when we gave him details of our investments. He said they were all inferior, and we would HAVE to sell the lot & start again. It didn't help that at the time we were living in Lethbridge Park, so I'm sure that had a lot to do with his attitude towards us. We didn't walk, but ran out of there.

 

I can imagine steve being like that .

Along with Micheal yardney , steve discounted cheap places . As you know Our first ip's where in Logan ..

When I first met him , we hadn't bought our first property . Nivea gave awards awards out at the bbq . I got the one for analysis paralysis ...

Cliff

 

Hehe, he's another I'd run from.

 

Back then I took a long look at Steve's trading methodology, in fact his whole methodology. He seemed to have created his own syntax to sell it.

It actually looked mathematically elegant and had a lot of appeal. I paper traded it for several months and the reality did not match the theory, I avoided the investment.

I also know the real estate agency in question. I agree SC, the person running it didn't have the management experience (not what I called it at the time, but that's a reasonable description).

 

You can get very rich investing in other people's projects too.

I know someone who a few years ago put a low 6 figure sum into a private perth company, thats now worth well i to 7 figures abd draws multiple times of invested amount just jn yearly dividends

 

I went to a property information session where the person was selling mentoring services... However, the reason I walked away early was that the presenter would not discuss her portfolio at all.. Just the things she had bought with her 'riches'...

 

Well, anything is possible. Even Forrest Gump got invested in some kind of "fruit company"...
But what's the use investing somewhere if you don't have control over it? Without control it's pretty risky. If you invest in yourself and you fail, at least there is no one else to blame.