My lengthy and painful experience with MRI has thankfully ended today, and whilst I have learnt my lesson, it has been unfortunatley and expensive one and could have been made much more expensive.
Following a MRI sales expo at Lords Cricket Ground in my investment partner and I were convinced to attend an inspection trip to Sunny Beach, Bulgaria.
Guarenteed rentals as high as 10% and "probable" capital growth of 30% per annum were amongst the biggest selling points that enticed us to sign up for the trip.in addition, mortage finance for 70% loan to value, was "gueranteed".
The trip was not as hard selling as other people have experienced, and was professionally conducted. To date, the sales expo and sales reps, accomodation and transport seemed to support the image MRI were trying to portary. The strangest aspect was only the insistence of the sales rep that we bring Bulgarian Currnecy cash to pay for any deposit we would conclude. This seemed odd, but nothing had put us off yet. As such we concluded to buy 2 apartments and pay an initial deposit.
We were introduced to "independant" law firm, Legal Independance and the sales rep even left the room for us to converse with the lawyers, showing just how "independant" they were.
The balance of our deposits were paid upon our return to the UK, using HIFX another introduced servcue provider. (Although I admit HIFX are well run and I continue toi use them today).
The probloems arose when the property, Crown Fort, in St Vlas, Bulgaria was due for completion and finance had to be arranged. CFP Mortgage were introduced to us and o=after having paid my 1000EUR "Membership fee" the appropriate forms were officially transalated and couriered off the CFP.
After many back-and-forth emails, we discovered that the applaiction was not even sent to any Banks. Many excuses of miscomunication proceeded, until we were told our CFP consultnat had left. The process re-started with a new consultant who subsequently left 1 month later. Process repeated and no action taken. When we complain to service manager Gillian Beeby we were told that because of our miscommunication they had not sent in the application. How infuriating. Becuase of their incompetence we were now at risk of losing our proeprties.
Commuincation from legal indepndance lawyer, Orlin Denkov, was sporadic at best, and when he did reply to our questions, it wa soften a blank email. Wait another 2 weeks for a reposnse, and the many occasions we tried to call his office, he was unavailable.
By this time, completion had passed and investors who had taken possesion were definately not getting guarenteed rentals, if anything at all. With the credit crisis now in full swing things were looking bleak, at best.
The kind developers, via Orlin at Legal Independance, were now willing to offer us a financing deal, if we paid a further cash deposit up to 50% of the purchase price and repaid the balance over 5,7, or 10 years with different interest rates. Our questions to Orlin with regards to these offers were returned after several weeks of waiitng and usualy not at all.
In Dec we were approached by a sales rep, Amy Boyton, who wished to offer us the "opportunity of a lifetime". MRI, being the saints they are, were willing to recognise the investments we lost in Crown Fort and wanted to give us discounts in properties in the ski resort of Bankso, Bulgaria. Seeing as were negligent in not completing on Crown Fort (like many others, her comments) MRI wanted to help us, by offering us peoprties they themselves had devleoped, and discounting them by the value of the deposits we had paid. The CEO was keeping these properties for the lucrative rental income, but wanted to show their customers hwo much they care.
Of course, she couldn't put this in an email as they didn't want us forwardng on the this incredible offer. We decided to entertain this idea s we had put down a significant investment and maybe this might be worthwhile. Apparently the December rental period was fully booked and the upcoming Womens Skiing World Cupp would assure great Feb/Mar rentals. This contrasted the information my good friend relayed, saying that his Bansko aprtment had rented a grand total of 4 days in 2008.
It was only after the countless phone calls and incredibly pressurised sales call that I decided to resarch MRI on consumer forum websites, and found:
Http://www.timesonline.co.uk/tol/news/uk/article601007. Ece (guaranteed rentalsI've heard that one)
Http://usacomplaints.com/reports/0/290/RipOff0290232.htm (some interesting stuff about the mortgage lenders and lawyers in here
Whilst I relaise that now my invetsment is long gone, and there is prib not much that can legally be done, one must ask:
- the sales pitch of guranteed rentals was misleading and untrue,
- CFP the mortgage brokers and legal indepoendance, were they really independant as claimed?
Even if nothing can be done, hopefully this will helpothers from being duped.
Duped
Sandton
South Africa
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