The Daily Mail has investigated the claims of a self-styled property investment expert who claims he can make anyone a property millionaire – if they hand over £10,000.
Reporter Ruth Lythe attended a seminar run by Raj Shastri at a hotel in London after spotting an advert in a newspaper. The seminar promised it could help people make fast money from soaring house prices.
Lythe explained how a three-hour presentation taught delegates that having limited funds to get started wasn’t a barrier to building a property empire. As he spoke, images of Shastri’s luxurious homes and cars flashed up on the screen behind him. He claimed he started with £950 and had a multi-million-pound property empire just five years later.
Also speaking at the seminar were a fellow property investor – who also claimed to own a buy-to-let empire – and tax-mitigation expert Simon Goody who explained how investors could “legally” avoid paying tax on rental income.
Delegates were then encouraged to invest £10,000 into flats at a former old people’s home in North Shields. Shastri explained that they were being sold at a discount and promised a 7% a year return.
Despite being impressed by Shastri’s presentation, Lythe wasn’t won over by his sales pitch.
“But while the properties on sale looked decent enough, I can only think you’d have to take on a lot of debt in mortgages to build your empire. If the property market should fall, you could end up owing hundreds of thousands to the banks,” she said, “And while Raj was keen to present this opportunity as too good to be true, I can’t help but think that’s probably because it is.”
Would you give Shastri £10,000 to make you a millionaire? Let us know below.
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Comments
I also would also be careful about taking investment advice like that from someone who went Bankrupt 12 months earlier
The turn of the century was the cream time to have become a BTL landlord. Round our way in those times, for a property worth £50K it was easy to get at least £500pcm.
Since then, particularly the last 10 years, more and more restrictions and costs have been imposed on landlords, such as having to pay full council tax on empty properties.
Whilst it is still possible to buy a property today and to have positive income, in this example the 'wealth creator' is trying to flog leasehold flats. This makes it doubly difficult to get positive income, especially when certain companies owned by a couple of Russians are involved in management.
I agree with Vanessa Warwick who says "I have been a landlord for ten years now and I might be an equity millionaire, but I am far from living a luxury lifestyle with prestige cars and holidays! "
This is correct, most people who are Landlords cannot enjoy their money, as all their savings (deposit money) is tied up in the property and any extra has go back into maintenance.
Oh dear! 2002 is calling and wants its seminar back!
I wouldn't give anyone £10K to make me a millionaire.
Why would anyone sell what amounts to the six numbers of the lottery for a mere £10K. They should charge a lot more! :)
Whilst I applaud any form of authentic information, this is not what is being offered at these various "get rich quick in property" seminars springing up around the country.
Based on this article, I have written
15 things they WON'T tell you at a property / wealth creation seminar
http://www.propertytribes.com/15-things-they-wont-teach-property-wealth-creation-t-10311.html
I have been a landlord for ten years now and I might be an equity millionaire, but I am far from living a luxury lifestyle with prestige cars and holidays!
It's taken a massive amount of hard work, money, dedication, stress, and operating outside my comfort zone to build our portfolio. "Easy" and "quick" has not come into the equation.
What newbies need to understand is that the wealth creation industry has nothing to do with the reality of being a landlord.
These seminars sell dreams, and, on many occasions, a ticket to the pot of gold at the end of the rainbow.
There is money and financial freedom to be made from investing in property, but its certainly not "get rich quick".
It's a long term game and commitment.
Newbies should spend a great deal of time researching the web and using such free resources as Landlord Today and Property Tribes to educate themselves.
They should also get themselves checked out to see if they qualify for mortgage lending - if they intend to use finance.
It's no good paying £12K to go on a mentoring programme only to find that you don't have the 25% deposit needed for a BTL mortgage and/or you can't get a BTL mortgage!
Hopefully, this time around, with the influence of the web, fewer newbies will lose money to these unregulated and unscrupulous operators.