Why does Opes Charge $0

People often ask: “Why doesn’t Opes charge anything to use them? What’s the catch?”

That’s a great question and an important one too.

When I started Opes Partners, we faced a big decision. Should we charge, or not?

We’re a property investment company. That’s a business that helps people buy investment properties. Most of our competitors charge $6,000 - $10,000 to use them.

But, here’s the thing. If you buy a property through them, they also charge a fee to the developer.

So our choice was – do we charge you and the developer, or just the developer?

If we charge investors for our service, we’ll make more money per investor. But, we won’t be able to help as many people.

So we chose a different path. We decided to make less money per investor, but help many more people.

We know Kiwis are reluctant to pay for financial advice, especially up front. So, we set out to lower the barrier to entry … and $0 was as low as we could go.

Charging $0 means more investors get quality financial advice.

Why a free service?

Our approach is not unusual. Lots of companies in the finance industry work this way.

For example, when you use a firm like Craigs Investment Partners or Milford, they often won’t charge to create a financial plan.

Instead, they earn a percentage of your investment over time.

So, when I set up Opes Partners I took inspiration from them. You see, back in 2013 when I set up the company, I noticed that people who invest in shares were well supported.

They had companies like Milford and Craigs that provide data-driven research into the share market.

I noticed property investors didn’t get the same level of analysis, so I wanted to replicate that for property investment.

Part of that was replicating this idea of not charging investors to create financial plans.

All of this was to help more people achieve their property goals.

How does Opes make money?

Some investors ask, “How is this free if I’m not paying you?”

Fair question … we still need to keep the lights on.

We make money in two ways.

#1 – Helping you find Rent Ready properties as investments

We get paid by the developer when we can find you the right Rent Ready property.

We’re a bit like a mortgage broker in that way. Mortgage brokers often don’t charge you to work with them; they get paid a commission from the bank when they help you secure the mortgage you want.

We work in the same way, but with properties.

Our team consistently talks to developers. They’re on the lookout for good investment properties.

So, when we recommend a property to you, the property developer pays us a fee, but that’s only if we can find the right investment for you.

#2 – Through our other property services

We help property investors in many ways. That’s why we also have a team of mortgage advisers, property managers and accountants.

If you choose to go through the Wealth Plan framework with us (and we do a good job), you might use them.

So we can earn money through:

• Mortgage broking – Opes Mortgages
• Property management – Opes Property Management
• Accounting – Opes Accounting

If you decide to use our property management and accounting services, there is a charge for this.

(Although, of course, it’s up to you whether you choose to use these services).

Do I pay more because I’m using Opes?

Almost every property transaction in New Zealand involves a real estate fee. It doesn’t matter whether you use Opes or a real estate agent. Most sellers pay a fee to sell the property.

This is usually between 2-5%. So whether you buy through us or a standard real estate agent, there is a fee attached.

But, we choose to offer a more comprehensive service for that fee. This way we we’re providing more value.

We do not add a mark-up to these properties. And we have the Opes Best Price Policy to make sure you’re not paying more when you use us.

Is Opes biased?

All financial advisers have conflicts of interest (bias). If you talk to an adviser who helps with funds, they have an incentive to tell you to invest in their specific funds.

If you go to a mortgage adviser, they have an incentive to get you as big a mortgage as possible. That’s because they earn a commission on every dollar you borrow.

So bias is everywhere, and you should look out for it.

The question is how you manage it. We try to manage our bias by being transparent.

When you come to us, you know that we focus on the build-and-hold strategy. We’re not trying to be everything to everyone.

If you’re looking for an existing property or a different investment strategy, we’ll tell you we’re not the right fit. We’re upfront about that and can even direct you to people who can help.

Here’s an example:

• What type of property investor should I be? Property pathways
• Best 4 property investment courses in New Zealand

Here’s where I’ve seen companies go wrong. They market themselves as independent investment advisors without showing their bias.

At Opes, we believe in honesty and transparency. We clearly state our strategy and how we make money, so you know exactly what to expect when you work with us.

In the end, our goal is to help as many people as possible. We believe that by offering free, expert advice in a specific area, we’re delivering on that goal.