When news reached the property investment community that Inside Track had gone bust on the 29th of April, 2008 a lot of investors were shocked and seriously debated the various angles of the situation and the uncertainty that followed.
Yet, amid the confusion and uncertainty, there were a few investors who smiled and nodded having been aware that the scenario that had played out was long overdue and had been expected.
For a very long time Inside Track was the most prominent of various property education companies. Its marketing strategy was so good that even the most conservative and sceptic were persuaded to part with their money and invested in property with the hopes of becoming millionaires in a few short years.
Just a few years back, Inside Track had declared millions of pounds in profits. According to the company, their largely unexpected downfall was due to the current credit crunch and the fact that it hampered the available opportunities that they had to get the type of mortgages which tend to make the business of buying properties a profitable one.
The basic truth however, was that Inside Track was in a very open position where it was rather vulnerable to any adverse circumstances that could occur in the property market.
Of all their problems, one major one was that the Inside Track philosophy never took serious account of the potential changes in the property market. Inside Track came into the market at a period when property prices were fast on the rise.
At that period, their strategy was based on buying as many off plan properties as possible with small deposits and then lying in wait for the price rises that would supposedly occur at completion. Large sums of money were then withdrawn in order to re-invest or put into other ventures which they found acceptable.
The strategy worked well for a while but the problem with that strategy was that it was created on a foundation and erroneous assumption that the prices of off plan properties were always going to be substantially higher on completion than they were when the initial deposit was placed on the properties months earlier.
Other than this, problems resulted due to the fact that a lot of other copycat investment companies opened up offering the same promises that they offered. What this meant is that off plan developments became overfilled with investors. Prices of resell and rentals for properties then did the expected by crashing down as a larger number of investors contested with each other for a lesser number of buyers as well as tenants.
From the beginning, Inside Track realised that people were ready to part with thousands of pounds of their money with the hope that they would become property moguls. The great thing about this strategy for Inside Track was that they were able to persuade people to give up large amounts of money without any surety as to the returns that would be made.
However, whether you lay the blame on the fluctuations of the property market or that of the financial market, the thing is that the strategy did not continue to succeed as was expected.
Inside Track and Jim Moore, its founder, made millions of pounds while a lot of ordinary people lost their life savings as well as their homes and the structure of their family lives due to the nature of Inside Track as well as its investment strategy.
Inside Track must have found out long ago that their methods of investing weren’t as profitable for investors as it was back when they first started. Serious complaints started mounting and lawsuits started being filed. What followed was that the effects of the ever tightening credit crunches compounded and it became clear that the best option was to fold before the situation got worse.
Seasoned investors had warned people for years about the dangers of investing with firms such as Inside Track, however due to the fact that Inside Track had a huge market and media presence as well as a powerful marketing strategy, average people were convinced to part with their money and given the hope that they would become the property millionaires of the future.
Property investment is one of the most efficient means through which ordinary people can accumulate great amounts of wealth but despite all this, it is also the easiest means to become bankrupt rather rapidly.
The education which most people paid a lot to learn from Inside Track, is readily available for a lot less on the Internet, you really don’t require thousands of pounds in order to understand how money can be made in property, all you have to do is to make a strong effort to do the necessary things to get the right amount of education about property investment, whatever your budget.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.