No. of Recommendations: 82
Great news!

http://www.guardian.co.uk/money/2008/apr/29/buyingtolet.mortgages

Inside Track, the company that spearheaded the buy-to-let investment boom, is to go into administration early this morning. The demise of the firm, which once promised to show customers "how you could give up work and be a property millionaire instead", comes as buy-to-let mortgages dry up amid tumbling values for British new-build flats, Spanish apartments and Florida homes.

Inside Track blames the credit crunch for its collapse as banks tighten up on buy-to-let lending, effectively ending 100% loans. Profits for the group three years ago were as high as £12m, but internal management accounts for the nine months to January 31 this year show income of just £239,000, with a £97,000 loss in January alone.

Inside Track Seminars, which labelled itself "Britain's biggest property investment company", was set up in 2002. It specialised in holding "free workshops" at hotels across the country. Lasting about two hours, these painted a world where anyone could become a "property millionaire". But it was a model that depended on a rising housing market.
Print the post Back To Top
No. of Recommendations: 3
OK... thats a Moet I will open tonight!

I have no desire to see peoples homes repo'd... but I will enjoy the barbecuing of these parasites.

No doubt they have all legged it to Montserrat with their ill gotten gains somehow salted away in numbered accounts, but at least I won't have to listen to those bl33ing adverts any more...
Print the post Back To Top
No. of Recommendations: 69
OK... thats a Moet I will open tonight!

Well, while you enjoy your £19.99 bottle of fizz, bear in mind that the people behind Inside Track are probably using Cristal to flush the bog. Here are some clues:

Founder Jim Moore, who spoke at the early seminars before moving to Spain,

and

Those attending were then offered - for further payments of up to £110,000 - membership of "a property club" run by an associated firm, Instant Access Properties.

and

It is difficult to calculate how much of that came from the company itself due to intra-group transfers. In 2006, group profits fell to £10.8m, then there was a steepslide in 2007 to £6.9m.

and

In documents filed at Companies House, the directors state: "We are aware that the risks to the company's ability to trade are impacted by the general economic environment, the current housing market sentiment, and the lack of liquidity in the financial markets."

and

The shares of both Inside Track and Instant Access are held by majority shareholder Pearson Foundation, based in Panama, and three Isle of Man trusts including one designated for Jim Moore and his former wife Kim.

and most importantly, perhaps:

Instant Access is, for accounting purposes, the company into which trading figures for Inside Track Seminars are consolidated. Instant Access is not subject to any administration order and will continue trading as normal for its members, as will the group's in-house mortgage broker, Fuel.

I strongly suspect that the perpetrators knew exactly what they were doing and knew that from the start it wasn't a question of how to make the business survive, but when to kill it off. It appears to me that these are sophisticated people who will have made an absolute killing, with the seminars being the tip of the iceberg.

Enjoy your Moet, but don't be thinking that anyone behind I.T. will be suffering. They almost certainly are laughing their heads off.

Manks
Print the post Back To Top
No. of Recommendations: 5
Author: M4NKS | Date: 29/04/2008 06:40:00 | Number: 220213

Enjoy your Moet, but don't be thinking that anyone behind I.T. will be suffering. They almost certainly are laughing their heads off.


Unfortunately, many of the suckers who fell for their spiel are now facing bankruptcy.
Print the post Back To Top
No. of Recommendations: 6
Hi


Unfortunately, many of the suckers who fell for their spiel are now facing bankruptcy.


Indeed, and I have more than once warned about "inner city new build flats", but as they say God invented sheep for fleecing.
Print the post Back To Top
No. of Recommendations: 0
Author: M4NKS | Date: 29/04/2008 06:40:00 | Number: 220223

Enjoy your Moet, but don't be thinking that anyone behind I.T. will be suffering. They almost certainly are laughing their heads off.

Who said the OP was gloating at the people behind I.T suffering? With Inside Track gone, that will be a huge chunk of demand for BTLs gone. That would be worth cracking more than one Moet.
Print the post Back To Top
No. of Recommendations: 6
I have no sympathy for the people who were suckered. On this one its simple. They should have known better.

The cheap fizz would be mainly to celebrate the removal of Diurmud Gavin's 'Profit from Property' guff from the airwaves of local radio.

I am saving the Krug '59 for a more significant event.

As for Mr Moore. Yes I am sure this was structured so that he could get out scott free (as I intimated in my post). But there is always the chance that one day he will go to his door and find 'Don Logan' has arrived to give him a fireside chat. Thats what can happen when your goal in life is to climb up a pile of people whose lives you have broken.
Print the post Back To Top
No. of Recommendations: 1
Indeed, and I have more than once warned about "inner city new build flats"

I think that's just about the one thing that every poster to this board, bull or bear has been agreed on for, what, the last five years or so?
Print the post Back To Top
No. of Recommendations: 0
THere must be so many people going to get burned by this outfit, that it's worth tracking them down and giving them a good hiding?
Print the post Back To Top
No. of Recommendations: 0
run by an associated firm, Instant Access Properties

There was also an associated mortgage/insurance brokers. They ensured they got lots of slices of the cake.



Akiking
Print the post Back To Top
No. of Recommendations: 0
THere must be so many people going to get burned by this outfit, that it's worth tracking them down and giving them a good hiding?

unfortunately that's probably all you can do, if I.T. has gone bankrupt, there's no-one left to sue. All the people lumbered with executive properties bought at a "discount" are really left with them while the perpetrators have legged it. I'd hope someone brings fraud charges, but I doubt it'll happen.
Print the post Back To Top
No. of Recommendations: 0
"THere must be so many people going to get burned by this outfit, that it's worth tracking them down and giving them a good hiding?"

But wouldn't Inspector Knacker of the Yard have something to say about this?

Would be ironic if the ripped off investors ended up in the nick and the IT managers get off scot free.
Print the post Back To Top
No. of Recommendations: 1
They've made their money and its time now to count the millions and come back with a new venture... who knows they may come back and buy up the properties thy've been selling at bargain prices.
Print the post Back To Top
No. of Recommendations: 2
Fair play to the Inside Track guys. They must have banked a fortune.
Print the post Back To Top
No. of Recommendations: 1
Well, I'm a bull, but I'm glad to see these parasites gone. Clearly they knew that boilerhousing of properties was not subject to the same rules that related to boilerhousing of dodgy share schemes.

No doubt they'll retire to Spain and carry on flogging off timeshares.

unfortunately that's probably all you can do, if I.T. has gone bankrupt, there's no-one left to sue. All the people lumbered with executive properties bought at a "discount" are really left with them while the perpetrators have legged it. I'd hope someone brings fraud charges, but I doubt it'll happen.

No doubt someone who got burned will start an 'action group' as always happens when some dodgy company goes ti%s up.
Print the post Back To Top
No. of Recommendations: 1
Hey Guys,

I'm not familiar with what these guys were doing - would someone be able to provide a summary of the company and the properties they were selling at the seminars from the start?
Print the post Back To Top
No. of Recommendations: 1
Print the post Back To Top
No. of Recommendations: 8
Hey Guys,

I'm not familiar with what these guys were doing - would someone be able to provide a summary of the company and the properties they were selling at the seminars from the start?


Not an expert but I guess their business model was something like this.

1. Get as many suckers to come along to a free seminar. At the seminar give just enough bait with stories of fortunes to be made with no money needed and no experience, convince everyone that you are mad if you don't take this opportunity. A mix of high pressure sales people, stooges and the like get you a 10-20% conversion rate to step two.

2. The next seminar where you learn all the secrets and become a member of an elite club that offers you gauranteed properties at 20% BMV (below their fake market value). Membership of this club will only cost you a few thousand and you will save this on your first deal.

3. Do deals with any developer with stock to shift, you value high and sell off at 20% percentage off the fake price to your punters.

4. Branch out into all sorts of extra services to support your pyramid.

5. Conveniently arrange your financial affairs in a labyrinthine fashion through various dodgy offshore tax shelters.

6. Pull the plug and declare bankruptcy having salted away your fortune leaving the mug punters with their life savings gone and their plans for the future in tatters.

7. Sleep well at night because you are a cold heartless b@astard who was just out to dupe people from the start.
Print the post Back To Top
No. of Recommendations: 0
John,

I think that just about sums it up.

It is not just this company though. This is the ideal modus operandi of pretty much any company/person wanting to get rich quick. It's not quite what they teach you on an MBA, but it's what the post-MBA dunnit-in-real-life practitioners will say...

Sometimes I'm sorry to be a liberal atheist. Somewhere I have a conscience that feels that doing the best thing is not doing the right thing, but why does it matter? The people behind IT have made a vague and unenforceable promise of wealth-for-nothing, taken the money off gullible fools (and there, but for the grace of Someone I don't believe in, go I), ridden the wave and safely jumped into a life of luxury. That, in a nutshell, is an MBA course and the model for any aspiring wanna-do-well. Can't blame them really.
Print the post Back To Top
No. of Recommendations: 0
Print the post Back To Top
No. of Recommendations: 9
Fair play to the Inside Track guys. They must have banked a fortune


"Fair play"!!!

For crying out loud, how can you use that phrase in conjunction with those cynical con artists.

I have no problem with people getting rich. I do have a problem with people who get rich by wrecking the finances of the gullible. It may be legal, just, but it's certainly not fair play.
Print the post Back To Top
No. of Recommendations: 2
I have no problem with people getting rich. I do have a problem with people who get rich by wrecking the finances of the gullible. It may be legal, just, but it's certainly not fair play.

Whereas these 'gullibles' had no inherent greed or weren't looking to get rich by selling property at profit to other 'gullibles'?

IMHO these 'gullibles' were part of the overall problem....ie another stone in the inverted giant pyramid that's now toppling nicely & will hopefully cause some significant bruising to all who were guilty of its construction.
Print the post Back To Top
No. of Recommendations: 0
With Inside Track gone, that will be a huge chunk of demand for BTLs gone.

Do you really think IT was taking down a large part of the market (IS directly or the students)? They might have been in the headlines but I am not sure they are to the actual sales total. Maybe specific buildings or specific cities saw more IT business but the whole country.

John Corey
Print the post Back To Top
No. of Recommendations: 3
For crying out loud, how can you use that phrase in conjunction with those cynical con artists.

I have no problem with people getting rich. I do have a problem with people who get rich by wrecking the finances of the gullible. It may be legal, just, but it's certainly not fair play.


I get the emotion.

What do you do about gullible people? If IT broke no laws then should we just create a list of people who are too dumb and ban them from making personal decisions about their own finances?

Human nature falls for booms, busts and bubbles. Nothing new and no one has every come up with a way to stop bubbles.

We can feel bad for some but it is really hard to stop people from making bad choices. It would require people who are not able to make bad choices to set the rules. A class of humans who know better and impose their will on others.

John Corey
Print the post Back To Top
No. of Recommendations: 0
Author: jedstar | Date: 30/04/2008 09:55:46 | Number: 220560

I have no problem with people getting rich. I do have a problem with people who get rich by wrecking the finances of the gullible. It may be legal, just, but it's certainly not fair play.

I knew a guy in Spain whi genuinely believed that property prices would double in the next 5 years so putting 20% on top as commission was fair game, he had helped make them rich. In a way he was as deluded as his victims
Print the post Back To Top