The Real Estate Investors Network (REIN) has found itself in hot water after several clients lost up to $300,000 on their investment property.
According to a report in The Sunday Telegraph, three investors lost money off their investment properties, with one investor claiming the REIN refused to pay rental guarantee assistance when the rent fell short of its projections.
This investor has held onto the unit, bought for $380,000, because it has not gained market value in seven years.
In 2003, Marta and Oscar Troche invested $770,000 in two new units, which REIN projected would be worth $1 million in five years.
In the five years following the Troches struggled to meet their loan repayments and expenses and was forced to sell at a $300,000 loss last year.
REIN declined to comment on client losses, although a spokesperson did say the company had managed to help more than 1,800 families invest in property to help secure their retirment.
“REIN also helps clients retain their properties during hardship to help ensure they maximise returns,” the spokesperson said.