Losing lustre

One of the more fascinating stories for property investors this week has been changes at formerly high-profile “education company” Richmastery.

This story reports on a restructuring where the business is transferred from one company to another and the former company is put into liquidation.

Richmastery is one of those organisations which attracts a fair bit of criticism; Often it is labelled as promoters of “get-rich-quick” schemes and even the word “spruiker” has been attached to it.

No doubt some of the criticism is well-founded. Other bits are tall poppy syndrome, or just competitors taking a free-hit.

One does have to acknowledge though, that over the years Richmastery has helped many people get into property investment and succeed.

What is interesting to observe is that the company is not as prominent as it was during the boom years. Its advertising is rarely seen these days. The millions of email I used to get in my inbox have stopped coming.

Many companies have a life cycle and one wonders whether these “property education” companies only last for one property cycle? I don’t know the answer.

It seems there are a number of contenders starting to emerge who are eyeing up the space once dominated by Richmastery.

Of course the other reason Richmastery may have gone through this corporate restructure and left behind a shell company with no assets and $76,000 in debts could be something to do with one of the last comments in the liquidator’s report.

It says Richmastery and Gilligan Rowe are in a legal battle. None of the details are revealed, but no doubt a scrap between the two principals would be one riveting legal battle.