Q&A statement from investor Nathan Birch, via a spokesperson
Question: On your website, there is a claim that you own 200+ properties. Then a few sentences later 150+ properties. The same occurs with the statement regarding your net worth — $30m and then $20m. Which figures are correct, and why such a vast discrepancy?
Answer: Nathan’s property portfolio and net worth is ever changing as he is constantly buying and selling properties. His net worth is approximately $30 million and he has a 200+ property portfolio.
Question: Do you have evidence that you own the number of properties claimed in the pieces cited in our original email?
Answer: Of course, Nathan has ‘evidence’ of his 200+ properties.
Question: What type of warnings or disclaimers do you give to people who may be tempted to load themselves up with debt via interest-free loans?
Answer: We do not think it business wise to discuss our Intellectual Property. We have spent a large amount of money and put in a large amount of effort into developing our documents. Our documents form part of our Intellectual Property.
We have all appropriate licenses and registrations as required and we comply with the law at all times. We encourage all of our clients to get independent advice from lawyers, accountants and finance strategists and we will not work with clients if we don’t deem them to be a good fit, either from a mindset perspective or capacity wise. For this reason, we ask potential clients to attend a MAP session, during which we educate people to look out for spruikers, we teach them not to over leverage and we discuss strategies that we ourselves have used and how those strategies have evolved in line with changes in the market, amongst other things. We also produce a lot of educational content that provides people with the means to go and build their own portfolios without our guidance should they wish.
In any event, we are unable to comment on a particular case without knowing further details and the facts surrounding the client’s current situation as our warnings and disclaimers differ on a case by case basis.
Question: Have you ever paid journalists/media organisations for the profiles featuring Binvested clients?
Answer: Binvested have not paid for the advertisement of any client case studies in the media.
Question: Is it true you charge a finder’s fee (said to be about $10,000) for recommending properties to investors?
Answer: Correct. We act on behalf of our buyers and investors. They employ us to find them properties that are in line with their goals and budgets. We charge a fee for our Buyer’s Agency service which involves more than simply “recommending properties to investors”. We have a blog that explains this fee in more detail here: https://binvested.com.au/how-much-work-does-a-buyers-agent-do/
Question: What is the worst case scenario for interest-only property investors if the market heads south or stagnates?
Answer: Again, we are unable to comment on a hypothetical situation where we don’t have any details about the investors personal circumstances. However, we always ensure our clients have sustainable and recession proof portfolios.
It has always been imperative that we minimise risk for our clients. Binvested has always stressed the importance of what we feel are the three key elements of building a successful property portfolio — buying below market value, making sure there is an upside for growth and making sure there is a strong cash flow. Most of the properties we source are neutral geared after all expenses and before any tax deductions.
Binvested do not offer a one-size fits all scenario to our clients. We have a team which includes financial advisors who work with our clients to develop a strategy that will work with their means. We do not advise high-risk strategies, nor do we suggest people can accumulate property wealth overnight — quite the opposite in fact. In almost every media interview Nathan has done, he has said that a lot of people these days aren’t willing to make the sacrifices necessary to save for a deposit and to become investors, as we live in a time where a lot of people live for immediate-gratification.
Our investors are working towards long term goals and delayed gratification, not getting rich overnight. They are using our services as a buyers agent to find properties that are below market value. This is something Nathan has personally spent many years doing, building relationships and studying the property landscape. This expertise and experience is why people choose to work with us and why so many have seen great success. We’re having a lot of success and we’re talking about it so others can learn about investing, rather than buying into media hype that purchasing property is ‘impossible’.
Of course it isn’t impossible, but it takes hard work and dedication. Being able to purchase property shouldn’t be synonymous with being able to buy property in Sydney’s most expensive suburbs. You can purchase investment properties within an hour of several CBD’s around the country for under $300k and we hope than anyone reading media headlines suggesting that “property is unaffordable for this generation” etc. are aware that those opportunities do still exist. We do not recommend high-risk strategies or that people without the financial means invest in property.