The Instant Access-Inside Track Saga goes on and on

Well after last nights rant at the TV we thought it appropriate that we bring you what is possibly the largest farce regarding the investment robbery world. The tale of Inside Track, Instant Access and all its other brothers and sisters.

There are numerous reports on all of the companies involved from many sources, so for convenience we will list them at the bottom of this article.

The articles mention several companies that all seem to be interwoven like a plot for an Eastenders Christmas special.

Instant Access,

L'Arome, (which went bust in the 90's owing millions)

Fuel Investments,

AfterCare Solutions,

The Pearson Foundation in Panama,

as well as the suggestion of several offshore trusts in the Isle of Man.

For those that are not aware of Instant Access and Inside Track, in a nutshell Inside Track held seminars amidst vast amounts of publicity claiming you could become an investment property millionaire if you paid them 5-10 thousand pounds. For your money they would tell you about the "opportunities they had sourced" (As it happens by people with little or no experience, let alone qualification) Which you the "Qualified Investor" would rush in and buy.

As it happens now, Inside Track and Instant Access are both in administration, no surprise considering the current state of the real estate industry and financing right now.

What the journalists appear to have missed though is a number of astonishing claims on the current Instant Access website made by Jim Moore. (Who signs off as the "Founder" now, when before he was nothing to do with anything at all, how strange!?)

Global Banking and Finance Crisis – IAP’s response for the future

As you will see, a lot of wittering on about how it is everyone elses fault and written in such a way it seems to be treating its' clients like 5 year olds which really adds insult to injury.

The statements that follow further on are just beyond belief though:

"Whilst the current climate is worrying and at best, testing for us all, (and I feel for every one of you with difficult investments at present - I also have my share - some have been the very same developments you may have invested in) I believe passionately in property investment for individuals like you and I, as a powerful complement, and alternative to straightforward "traditional" investments."

"As you are no doubt aware, I founded this business some eight years ago, and so, when other funding could not be sourced, it was left to me to decide the "ultimate fate" of the business.As a result of this, I've worked with my team in "crisis talks" since Friday in an attempt to come up with a solution.Our ongoing aim is to be able to offer you, as closely as we are able, the services and opportunities that you were previously offered, with minimal interruption and disruption. To do this I've been required to commit to further substantial investment in order to take the business forward."

So tell us Jimbo, how are you going to take the business forward? How are you going to get us out of this jolly old mess?

"This has meant it has been necessary to form a new operating company, "IAP Global"."

Whoa! What!!!!?????

"IAP Global is headed up by IAP's previous Managing Director, Tony McKay, and staffed by people I'm sure you will know and recognise.This team will help you to complete on properties that you've invested in, and continue to find new investments in areas of opportunity around the world for you to capitalise on as and when you feel you're ready.
You will appreciate these are difficult times for all of us, and we too have had to restructure and downsize in order to find a solution – as such we would ask you to please be patient with us should you feel you experience any service shortcomings in the near future – the decision was taken that "a smaller IAP was better than no IAP""

Now hold on a moment, let us get this straight. We have been to your seminar. We have paid you say 10K to see all your investment ideas. We have then handed over a huge wedge of cash to a developer that has then paid you a commission. You have let one company fade away, taken out a debenture on it just in time to see that you get paid before any other creditors and now you tell me that a smaller IAP is better than no IAP? Does this mean you can fritter away less of my money?

Apparently not! the page goes on to say,

"In the next few days and weeks, we will be launching a number of new "market appropriate" investment products, with a focus on high growth, minimum investment, minimum risk, and positive returns. IAP Global will also be launching its own website (at the same web address:- www.iaprops.com) - please ensure we have your current email and mailing address, and also, check the website regularly - we intend to make more use of it as a member communication tool.We will make sure we keep you abreast of any changes and developments, hopefully all good from now on. We all know that this is a difficult time for everyone, nobody is immune, but together I believe we can find a way through this and into profit. It’s difficult to be "courageous" at times like this, but you recognised property investment was good when you elected to get involved with us, and fundamentally that hasn't changed."

"Market Appropriate Investment Products". Hold on a moment whilst i climb back on to my chair after falling off it due to laughing so hard.

May we remind you that the last "Market Appropriate Investment Product" you promoted was as much use as a sunbed on a submarine?

An ingenious scheme to calm the heat and extract more cash from already desperate clients, some with debts into the millions already. If you are an Inside Track/Instant Access client, do let us know of the latest propositions. Be aware that any money sent has already disappeared, most likely to the Pearson Foundation in Panama, what is to stop the latest venture going the same way? I can't imagine this lot coming back from Panama in a few years time to face the music!

Irish Independent "On an inside track to a property jackpot"

The Free Library "No more takers for dream of becoming property millionaire"

The Guardian "Champion of buy-to-let boom succumbs to credit crunch"

Yahoo Business "Unanswered questions at Inside Track"

Panama - Just a short ride in a Canoe?

The biggest rave in the industry in recent times during the demise of the European market has been Panama. Made famous more recently by the "Reggie Perrin" incident by a husband and wife team Anne and John Darwin who thought it might be a good idea to have a picture taken even though one of them was "dead" (Good call!) Then Anne deciding she would go back to the UK, somehow under the illusion that no wrong had been done. (Ask her that in 6 years)

In the real estate world though we saw a surge in developers arrive in Europe with all their dog and pony shows at the trade exhibitions, many with their amusingly miss-spelled brochures and charming good looks, especially at the 2007 SIMA exhibition in Madrid.

2008 though was a different story. Less Panamanians had made the trip, more western agencies were there though with the same product, literally! Whilst at the exhibition I stumbled across no less than 4 stands selling the exact same product from the very same developer, and then found the developer themselves also there, offering exclusivity to anyone wandering by! In 2007 the developer stands did appear to be busy, but 2008 saw less stands, most were not developers but agents, and there appeared to be less traffic all round.

Generally the SIMA exhibitions are a pretty good indicator for what is likely to be a popular seller for the coming year, not necessarily because it's good value, or a great investment, but simply because if the developers sign enough agents, they know the agents will advertise, the press will pick up on it and will make it popular for them. As a result, public being what they are and the sheep mentality that exists, the product will sell one way or another.

Panama now though as a seller? Not a lot seems to be happening there, I speak to agents on a regular basis that sell there, either in Panama itself, or remotely and it doesn't sound like it's moving all that fast.

The big question here has to be why? You would think Panama being a tax haven, low extradition laws, and limited space that prices would be off to the moon, and it would be the greatest thing since sliced bread!

The reasons are few and simple. Donald Trump, Resale Market (Or lack of it) and the inexperience of agents and Realtors there.
Just because Donald Trump buys or develops a building somewhere, it doesn't make it a good investment!

Donald Trump is a Bazillionaire, has an outrageous syrup, and most well known for saying "Your Fired". These are not reasons to base the largest investment you are likely to make in your life upon. Why not? He has the money and the name to manipulate the market, and he has the "sheep factor" behind him. If he buys somewhere and then tells everyone, you will buy too, push up the price, he will then let some company sell it to you at an exorbitant mark up, and then run away giggling. Just like Warren Buffet does with silver, and George Soros does with the UK stock market.

The Resale Market? There hasn't been one! Ask your friends, go to the pub, go on the Internet and see if you can find someone who bought a house before the arrival of all the developers. We saw a similar thing happen in Cape Verde. When the market started there any re-sale price or procedure was purely guess work, now though 5 or 6 years on, there is a steadily growing market, and ex pat agents are thriving.

Inexperienced Agents/Realtors? With no re-sale market to begin with there wouldn't be, so any agents there are ones that have fled Spain before the crash, or are some of the few Americans with a passport and/or a tax problem. I tried on many occasion to list and display Panamanian re-sale property on European websites, several companies touting to be Panamas largest, oldest and so on. Not one could come up with anything!

What now? If you have bought, sit tight. Personally I think the market is there, just not in the "get rich quick boom" that everyone was told, the weak dollar is still making it a value play for those with Sterling in their pocket. As to whether quite all of the developments will get built or not is another matter. The transition from what Panama was (Basically a tax haven) to a tourist destination for all to enjoy is a large one to say the least, and is certainly not a 5 minute job.