Inside Track

Inside Track

Inside Track is a British property investment company [ [http://www.insidetrack.co.uk/ Inside Track official website] ] that went into administration in April 2008 following a downturn in the UK property market.

The company advertises that customers can become wealthy through its methods. Its adverts appear in newspapers and through mailshots, all inviting customers to attend a free property investment session. At the session they are then invited to pay for a full two-day investment course, priced at £2,500 and upwards. [ [http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=421346&in_page_id=56Are property seminars a good bet?] , Simon Lambert, This is Money]

If the customers proceed beyond this stage, Inside Track and its sister companies send them property brochures for potential buy-to-let properties. These are typically off-plan properties, with the stated aim of achieving price appreciation before the property has even been built, but with a view to holding the property long-term. Inside Track receive a portion of the purchase price for this service, 3% if purchased through its sister company Inside Access , [ [http://www.tiscali.co.uk/money/guardian/features/2005/02/5/buy-to-letwaytoriches/2 Buy-to-let 'way to riches'] , The Guardian] in addition to a £1,000 reservation fee, although figures of 10% have been cited for overseas properties. [ [http://www.thisismoney.co.uk/mortgages/homesabroad/article.html?in_article_id=420738&in_page_id=505 Costa catastrophe] , Helen Loveless, Mail on Sunday, 27 May 2007] Properties bought through Instant Access are sold at 15% discount, the 15% discount meaning that the loan-to-value ratio of the mortgage is sufficiently low to be able to borrow the full cost of the property. Receiving details of the Inside Access properties requires Inside Track membership, which is sold at the company's forums.

Inside Track's methodology is based on gearing, with customers encouraged to borrow against properties (including their own home) in order to buy more. The rental yield from the properties should then pay the cost of servicing the debt.

History

The company was set up by Jim Moore. (www.jimmoorewealth.co.uk) Moore has a history of 'reinventing the business model' in favour of the consumer.

He was involved in L'Arome, a company set up on similar lines to 'Ann Summers', 'Herbalife', 'Amway' and 'Kleeneze', multi-level marketing (pyramid selling) - it was a perfume business that was started in 1987 with a simple but ingenious business model - a high quality product with a substantial reduction in advertising (one of the major costs borne by perfume brands) packaging and distribution costs which were subsequently conveyed to the consumer and the seller. Moore was a founder and director. By 1989 under his sales and marketing leadership, the company achieved the coveted position of 'best selling perfume brand' in the UK. (quoted by trade publication 'Soaps Perfumes and Cosmetics') and launched for business in 7 countries. This success attracted unwanted attention from Chanel and the company was forced into liquidation following legal action from Chanel on trademark infringement of its brands in 1991. The company won the right to have its case heard in the 'House of Lords' but ran out of cash. The company subsequently reformed with new directors and shareholders, and a £2,000,000 capital injection from 'Schroder Ventures' and Peter Cookson (buyout specialist famous for the 'Timpsons' management buyout) but as a result of the Chanel action were left with no option but to once again appoint liquidators in 1993.

Inside Track was set up much later, in 2000. Moore once again spotted a gap in the market and recognised that since Thatcher had liberalised the residential property investment industry with her new 'Private landlord' guidelines and 'assured shorthold tenancies', there was nobody who specialised in helping the consumer capitalise on this. The gap was obvious - institutional investors had larger 'consultancy' type companies such as 'Savills' to assist them, meanwhile the consumer was left to the mercy of the estate agent, who worked for the seller and not the buyer. Inside Track was formed to meet the demand for a 'Buyers Agent' and fill this natural vacuum.

Moore recruited a world class management team, with the help of his first lieutenant 'Brad Rosser'. Rossers pedigree was previously that of 'Corporate Development Director' of Richard Branson's 'Virgin Group'. Previously with McKinsey and Alan Bond, Rosser was able to add depth to Moores entrepreneurial vision. From joining the business in 2002/3, he was significant in his efforts to help Moore build an institutionally acceptable 'back office' for the business. Early additions to the team were Tony McKay, previously Managing Director of 'Chestertons', Chris Leverick previously FD of 'LEGO' and John Pickles, previously Marketing Director for AMEX (Middle East) - the company was the subject of serious bid / purchase speculation during 2006/7, but unfortunately at that time the state of the credit markets scuppered any possibility of attracting the substantial partnerships they sought.

Whilst Inside Track was formed to show private residential investors how to capitalise on property investment in general, just one of its sectors, 'buy to let' has, in the UK, become an industry in itself, and Inside Track dominates the industry (The Times quoted them as being 'an elephant amongst pygmies.') As of March 2008 its clients had invested in more than 15,000 properties with a value exceeding £2,000,000,000, with substantial profits being made by many investors. Inside Track / Instant Access has annual independent valuations of its portfolio - in the Uk this is undertaken by Allsops. On average, their clients have had a positive result every year since their inception - in good times and bad.

To year end April 30 2006, it made £10.9m of profits on turnover of £44.8m. To year end March 31 2007, 25,265 people attended its free seminars, and 3,834 signed up the paid-for seminars.

Criticism

Like most successful property investment mechanisms, one of Inside Track's preferred methodologys is based on gearing. Whilst they educate investors in 7 or 8 different techniques and method, the reality is that most take the 'path of least resistance' Clients are educated about different types of debt, good and bad, so that they can elect whether or not to borrow against properties in order to add to their net worth by investing in more. The rental yield from the properties should then pay the cost of servicing the debt, or in the case of development / refurbishment projects, the profits clear or reduce the debts.

Administration

Due to a sharp decline in UK property market sentiment in the wake of the credit crunch, Inside Track Seminars Ltd., which runs the seminars, went into administration in April 2008. The other three companies in the group, Fuel (mortgage brokes), property club Instant Access Properties and a management company AfterCare Solutions remain as going concerns. [http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=302091]

References


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  • Inside track — Inside In side , a. 1. Being within; included or inclosed in anything; contained; interior; internal; as, the inside passengers of a stagecoach; inside decoration. [1913 Webster] Kissing with inside lip. Shak. [1913 Webster] 2. Adapted to the… …   The Collaborative International Dictionary of English

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  • inside track — n 1.) the part of a circular track for racing that is nearest to the centre of the circle and is therefore shorter 2.) AmE a position that gives someone an advantage over the people they are competing against ▪ the inside track to success in… …   Dictionary of contemporary English

  • inside track — ☆ inside track n. 1. the inner, shorter way around a racetrack 2. a favorable position or advantage …   English World dictionary

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  • inside track — {n. phr.} 1. The inside, shortest distance around a curved racetrack; the place that is closest to the inside fence. * /A big white horse had the inside track at the start of the race./ 2. {informal} An advantage due to special connections or… …   Dictionary of American idioms

  • inside track — noun 1. a favorable position in a competition (Freq. 1) the boss s son had the inside track for that job • Hypernyms: ↑superiority, ↑favorable position, ↑favourable position 2. the inner side of a curved racecourse • Hypernyms: ↑ …   Useful english dictionary

  • inside\ track — n. phr. 1. the inside, shortest distance around a curved racetrack; the place that is closest to the inside fence. A big white horse had the inside track at the start of the race. 2. informal An advantage due to special connections or information …   Словарь американских идиом

  • inside track — UK / US noun [countable] Word forms inside track : singular inside track plural inside tracks 1) an inside lane for a race 2) a position of advantage over other people competing with you, especially for a job …   English dictionary

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