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Thread: TREOC mystery

  1. #1
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    Question TREOC mystery

    I have searched the internet for information regarding the "TREOC way" of investing in property, and all I can find is praise for this method.
    Does anyone have some insight into this?
    I feel that any investment which promises 60% return per annum and "no money down", to be completely unrealistic as there is no such thing as easy money, otherwise we would all be rich.

  2. #2
    just me duncan drennan's Avatar
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    In my understanding the TREOC way is essentially the same way as taught by a number of property people: buy property and keep refinancing it to the hilt and use that capital to buy more property or to live off of. In my understanding this relies on the property growing in value. That is an extremely basic explanation. I'm sure Karen will have more to say about this.

    A good place to start (if you are interested in those kind of things) is a book by Dolf de Roos, "Real Estate Riches". I have a copy of this book if anyone would like to borrow it (in and around Cape Town).
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  3. #3
    Email problem Karenwhe's Avatar
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    No actually I don't have a lot to say about Treoc as I am not in the that "way".

    You if you want to ask questions and talk about the Treoc way you can search the forum I know there are at least 5 to 10 threads about treoc, coert and club and everything else in between, that express both sides of the "way" and opinions.

    If I remember correctly Coert from Treoc "the big boss" himself, posted a thread there about a year ago.

    I am sure you will find interesting things and you can ask your questions from people that have been or still are with the Treoc Way.

    Hope this helps.

  4. #4
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    Treoc. Great Concept But...


    I'm a Treoc member for the last couple of years. The Treoc concept works great but you must know exactly what you are doing.

    I have bought a couple of townhouses in Klerksdorp using this method but those people who didn't understand the risk of over-exposing themselves, got burned during the interest rate hikes.

    My only recommendation is that if you are really interested, you should attend one of Coert Coetzee's seminars.

    I'm in no way affiliated with this company so this recommendation is based solely on helping you do the right thing.

    Don't go on hear-say and try it yourself.

  5. #5
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    Don't use the Treoc Way

    I've been using the Treoc in its early days. It is flawed if used exactly as taught to you in the seminars.

    Yes it is based on refinancing the property (milking it) until doomsday.

    You cannot control property values thus banking on the capital growth places you in a downward debt spiral, and when the Interest rates changes against you, it will be really unpleasant.

    The method I was taught by Coert does not use the IRR at all. He might have brought it in later, however if you use the IRR method properly you will never buy a Treoc type property, since IRR is about income and not capital.

    I also know of other people who used the Treoc way and seriously burned their fingers. They now have bad credit records and a heap of debt to the banks.

    Further in one of the newsletters written by Coert himself, regarding the NCA he advocated more or less that you would not disclose all your expenses to the bank when applying for further loans. Now this is against the NCA and you will have no recourse if things goes haywire.

    Also many property so called 'gurus' appeared in the early 2000's. Be careful with all of them. At the end it is you who make the decision. Since this is South Africa and I have freedom of speach and I have no connection with property gurus, but as investor survived myself these interest rate hikes over the past few years, this is my opinion and I will never promote the Treoc way.

    I went to several property investment seminars, and the ones that advocate Income is better than Capital, are the right ones. Finding so called income by destroying your capital is a flawed system. Forget about Capital growth for a moment, and focus on the Income that you will receive from your property based on the worst case scenario!

    Another warning to anyone reading this post:
    Be carefull with seminar leaders in any industry who makes you DEPENDANT on them!!! For example,
    1) if you need them to source you an investment property (paying them via comms - They sometimes also do this by developing their own properties at so called low market rates - yeah right - whose market rates?),
    2) Use their and only their Trust advisors (they get a cut or own them), rather than teaching you how to do it yourself,
    3) Use their rental agencies to rent out your properties that you have bought (they earn commissions),
    4) Some even franchise these agencies and services and makes even more money for themselves
    5) Use their bond originators, because they know how to work with the banks,
    6) Use their transferring attorneys, because the trust you have setup with them because the independant trustee does not want to use any other transferring attorneys for some reason
    Some even get you to sign a debit order to have the independent trustee on your trust, and tells you that the law requires an independent trustee, and refer you to some obscure court case without much relevance to your situation if you read that case.

    and many more.

    BTW, if you crusify me with regards to the independant trustee, don't I did my research, and you should too before crusifying me, and please do read that court case that your independant trustee is referring you to, and not their interpretation, which is normally different than the court case itself.

    Get a good second opinion...

  6. Thank given for this post:

    duncan drennan (09-Feb-09), roryf (15-Feb-11)

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    Failing apart

    A report in the Cape Times shows claims that the Treoc duped the four major banks into overexposing thousands of investors to an estimated R5 billion in bonds. Its says Treoc Property Investments advised and organised loans for an inexperienced 29-year-old investor to about R2.9 million in bonds from different banks on a salary of R17 000. Financial records show that Treoc applied to four different banks for bonds for the Goodwood man on the same day, and got them. A former Treoc director, attorney Jose Delgado, who left in 2008, was subpoenaed to explain why, as a joint "independent" trustee, he did not advise the young man that he was getting into trouble. When it was put to Delgado that Treoc director Coert Coetzee was "selling fraud on creditors", Delgado answered: "You can look at it that way." Treoc, an investment company directed by Coert Coetzee, offered property investment courses to laymen on how to create and operate property trusts. Treoc did everything in-house: applying for bonds, sourcing properties, administering a rental pool, and offering related financial services.

  8. #7
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Investor View Post
    A former Treoc director, attorney Jose Delgado, who left in 2008, was subpoenaed to explain why, as a joint "independent" trustee, he did not advise the young man that he was getting into trouble.
    Do I understand this right - Jose Delgado was a director of Treoc and an independent trustee of this "young man's" trust used to purchase the property at the same time?

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