Wrapper Jenman agent’s biggest client

The man Australia’s leading real estate consumer advocate Neil Jenman calls a “spruiker and loan shark”, has been contributing many thousands of dollars to the Jenman coffers for years through sales commissions, propertyreview.com.au has discovered.

Jenman, the man who single handedly brought down the King of spruikers Henry Kaye, has been linked through one of his leading Jenman Approved agencies to Australia’s best known wrapper (or vendor finance provider) Steve McKnight.

Propertyreview.com.au has found that the Jenman Approved Ballarat agent Hayden Real Estate has sold dozens of properties to McKnight for years despite Neil Jenman warning consumers about wrapping and vendor finance.

In a recent article on the Jenman website Jenman said: “Now, consider the ethics of wrapping. In ethics, the principle of ‘intent’ is important. Do investors who embrace wrapping intend to harm the buyers? In most cases, no.

“Many investors truly believe they are creating ‘win-win’ deals for themselves and their buyers. But it is obvious that these investors have not stopped to consider the possible consequences of their methods. Certainly, they know little about ethics. They may be well-meaning, but they are misinformed when it comes to ethics. Their intentions may be proper, but their methods are not.”

Jenman added in another article: “For the sake of consumers, it is time to close down the property loan sharking industry.”

He describes wrapping as a “shameful property scam”.

Principal of Hayden’s Real Estate Richard Hayden told propertyreview.com.au last week that he hasn’t sold a property to Steve McKnight for many months and couldn’t recall how many he had sold to McKnight in the past.

“When I first started selling properties to McKnight I wasn’t aware about the intricacies of wrappers at the time,” Hayden told propertyreview.com.au.

When asked whether he believed it was unethical to sell his vendors homes to McKnight for “wrapping” purposes Hayden becomes even more vague stating it was “many months ago” and he has “changed his policy towards selling to wrappers now”.

Interestingly, Hayden said he can remember that he told all his vendors that he was selling their properties to McKnight.

McKnight usually buys properties on the cheap side, renovates the properties, then sells them on vendors terms.

It has been alleged by parties close to Hayden Real Estate and McKnight that the real estate agency asked Jenman for advice on whether he should sell properties to the wrapper.

It is also alleged Jenman told Hayden that “as long as he didn’t know about the sale it would be okay”.

Jenman denied this week that the conversation between he and Hayden ever took place.

In a detailed interview with propertyreview.com.au, Neil Jenman details his knowledge of his leading agent’s involvement with McKnight.

PRV: “Has Hayden real estate ever sold properties to wrapper Steve McKnight?

NJ: Yes, I believe so. McKnight told me so and, also, so did some emailers.

PRV: If so how many?

NJ: No friggin' idea.

PRV: Did Hayden’s have an ongoing sales relationship with McKnight?

NJ: You should ask Hayden.

PRV: Did you know Hayden’s was dealing with McKnight?

NJ: Not at the time, but even had I known, what difference would it make?

PRV: Have you ever said to the Principal of Hayden’s that: “It was okay for them to deal with McKnight as long as you did not know”?

NJ: No.

PRV: Do you believe by selling properties to McKnight, Haydens is unethical?

NJ: No. If the seller, who employs Hayden, gets the best price, then so what? Churchill once said that if Hitler invaded Hell, he'd want England to do a deal with the devil. If Hayden acted unethically then I would compensate the sellers for any loss. Unlike the wrap buyers, I have had NO complaints re Hayden and a sale to McKnight.

PRV: Do you believe that by turning a blind eye to the relationship between McKnight and Hayden you are unethical or at the very least a hypocrite?

NJ: When I found out that McKnight (and other wrappers) were buying from agents who were clients of mine, I told the agents to make the sellers aware if the agents knew (which often they didn't of course, because the very nature of the wrappers is not to disclose their intention). It wasn't just wrappers, but also two-tier marketers who were doing the "double swoop" by buying properties from sellers for thousands less than the sellers paid, but yet a lot more than the sellers would get in the normal market. "What do I do?" said one agent, "If they sell to this buyer, then this buyer is going to re-sell and rip off another buyer, but the price offered to this seller is MORE than any other buyer will pay."

As for what people think of me, especially the crooks in property, I don't care.

For the record, in his opening to propertyreview.com.au’s interview Jenman oddly said: “Did you meet my friend Roger Gray when you were here on New Year's Day? He has been a close pal since 1973. I learned so much from him. One of the stories he once told me was about a tow-truck company that used to place oil on the road at intersections. Horrible stuff, eh? But, you know what - I believe it was true.”

Ironically, when propertyreview.com.au asked about his knowledge of the Ballarat agent involved in the alleged scandal, Richard Hayden told propertyreview.com.au that the Real Estate Institute of Victoria had not done its job in pursuing the allegations.

He said the agent involved in the so-called scandal was “unethical”.

Hayden called on Consumer Affairs Victoria to further investigate allegations of the home owner who had seen the agent with two buttons undone on his shirt.

When asked whether his actions of selling properties to McKnight was also unethical in light of Jenman’s vitriol and stand against McKnight, Hayden became very coy.

“It depends from which perspective you are looking at it from.”

Editors Note: propertyreview.com.au has been and will continue to be a great supporter of Neil Jenman’s work against property spruikers, however, whether the Jenman approach when it comes to his Approved agencies is hypocritical the reader must judge for themselves.

Original article: www.propertyreview.com.au