Property clubs in new guises are on the prowl again
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Resurgent property clubs are targeting networks to drum up business from brokers, Bob Young, managing director at CHL mortgages, has warned.
He says clubs which thrived before the financial crisis by offering investors discounted buy-to-let properties are returning in different guises and the industry should be on its guard against them.
Young says: “I understand these clubs are approaching networks, particularly small ones, to gain access to clients. They will ask to host seminars with networks’ appointed representatives to persuade them to put business their way. Brokers may be tempted to match clients to buy-to-let deals offered by the clubs if they are struggling for business.”
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Readers' comments (1)
Anonymous | 21 Dec 2011 4:13 pm
What does a Property Club look like and what's wrong with them?
We work with brokers finding property for clients and the relationships have been great. Hopefully a win win.
We don't claim to be a property club hence me asking what they are?
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