Just a bit of info & frankly I was waiting for this to happen - Inside Track who specialise in BLT investments have gone into liquidation - it shouldn't surprise anyone but it's a shame if anyone did pay the ridiculous amounts required to gain their experience on the BTL market.
Hoggums
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Good riddance to them.
The were no better than the likes of Stanzione etc.
I'm amazed that the company wasn't prosecuted for what they did. For those who don't know, apart from charging extortionate amounts for their seminars and then charging 000's for membership, they would make a deal with a developer to buy a bunch of flats for say £150K each. They would then approach one of their "investors" telling them it's worth £200k but the deal is inside track would pay the 15% deposit for them, therefore they didn't need to put any money down, and they would arrange their mortgage for the remaining £170K. So Inside track pay the solicitors the £30k deposit which goes straight back into their account plus the 20K surplus from the mortgage. The rest goes to the developer. And the client is left with a 170K mortgage on a 150K property expecting the rent to cover the cost - only to find it doesn't.
Problem is now that the company has gone into administration - there's no-one to prosecute now and all those poor investors are seriously out of pocket with 25%+ drops in value already.
The were no better than the likes of Stanzione etc.
I'm amazed that the company wasn't prosecuted for what they did. For those who don't know, apart from charging extortionate amounts for their seminars and then charging 000's for membership, they would make a deal with a developer to buy a bunch of flats for say £150K each. They would then approach one of their "investors" telling them it's worth £200k but the deal is inside track would pay the 15% deposit for them, therefore they didn't need to put any money down, and they would arrange their mortgage for the remaining £170K. So Inside track pay the solicitors the £30k deposit which goes straight back into their account plus the 20K surplus from the mortgage. The rest goes to the developer. And the client is left with a 170K mortgage on a 150K property expecting the rent to cover the cost - only to find it doesn't.
Problem is now that the company has gone into administration - there's no-one to prosecute now and all those poor investors are seriously out of pocket with 25%+ drops in value already.
Quite agree with your comments Hoggums this article basically says it all about the company.
Champion of buy-to-let boom succumbs to credit crunch | Money | The Guardian
Champion of buy-to-let boom succumbs to credit crunch | Money | The Guardian
