Last updated: 9 October 2026
Quick answer: Property investment companies in Australia make money in four main ways: a fee paid by the investor, a commission or marketing fee paid by the developer, builder or seller of the property, commission from lenders on the loan, and ongoing fees for related services such as property management. The one that matters most is the seller-paid commission, because on a house and land package it is usually built into the price you pay. The quickest test of any company is to ask who pays it, and how much, in writing.
Already been shown a package by a property investment company? Get it checked before you sign.
This guide explains how the business model works, what several well-known companies say about it in their own documents, how regulators describe the risks, and the questions to ask before you commit. We should be upfront: REIN works in this industry too, so we’ve linked every claim to its source.
How Do Property Investment Companies Make Money?
Most companies use one or more of these income streams:
- A fee paid by you. This might be a membership, a coaching or education program, a strategy fee or a buyer’s agency fee.
- A commission or marketing fee paid by the seller. Developers, builders and land sellers often pay the group that brings them a buyer. This is the payment investors most often don’t see.
- Commission from lenders. Mortgage brokers in Australia are usually paid by the lender. Many investment groups have an in-house or related broking business.
- Ongoing and related services. Property management, accounting, depreciation schedules, insurance and conveyancing referrals can all carry fees or referral payments.
None of these is unlawful on its own, and being paid doesn’t make a company bad. Everyone in property is paid by someone. The question is who pays, and whether that changes what you’re shown.
Who Pays the Commission on a House and Land Package?
When a house and land package is sold through a marketing group or investment company, the developer or builder usually pays that company a commission or marketing fee on each sale. In our experience on the developer side, that cost is built into the package price, whether or not it appears on the contract. On a house and land package it can run into tens of thousands of dollars.
That has two effects for an investor. You may pay more than the property would cost if bought without the intermediary, and the bank’s valuation may come in below the contract price. Moneysmart warns that property offers with rent guarantees or off-the-plan discounts “often include hidden fees and commissions”, and that you may pay more than the property is worth.
Here’s how builder commissions in house and land packages work.
Been shown a package already?
Before you sign anything, see exactly how the price is structured, including any commission built into it.
What Do Property Investment Companies Say About How They’re Paid?
Some companies say it plainly. Others don’t address it on their website. Here’s what we found in each company’s own materials when we reviewed them. Follow the links for the full review and sources.
| Company | What its own materials say about payment |
|---|---|
| Freedom Property Investors | Charges a membership fee. Clause 2.8 of its membership terms says it “may be paid commissions on services we provide to you”, including property sales and finance. |
| Property Club | Its Member Benefits page says: “Our costs are largely met by the vendors.” |
| Positive Real Estate | Charges for mentoring. Its property page says access to its properties carries no additional fee per purchase, but doesn’t say how it is paid when a client buys one. |
| OpenCorp | Didn’t spell out how it is paid on the pages we reviewed. |
| Ironfish | Didn’t say on its website how it is paid when a client buys a property it recommends. |
| InvestorKit | Presents itself as acting for the buyer and charges its clients a fee. The pages we reviewed didn’t say whether it receives payments from third parties. |
Company websites change. Treat this as a starting point, and ask each company directly before you commit.
Is a Property Investment Company the Same as a Buyer’s Agent?
Not necessarily. In NSW, a buyer’s agent must hold a real estate agent’s licence, or a certificate of registration and work under a licensed agent, according to NSW Government guidance. A licensed agent acting for you owes you duties under state law.
Many investment companies work differently. Freedom Property Investors’ terms, for example, state at clause 8.2: “We are not real estate agents and do not undertake any real estate agent’s duties or responsibilities.” A company that recommends properties and is paid by the seller is a different model from one that is engaged and paid by you to act on your side. Ask which one you’re dealing with.
NSW Government guidance also suggests asking any buyer’s agent whether they receive “any rebates, discounts, commissions or other benefits from third parties”. The same question works for any property investment company.
Why Property Investment Advice Is Less Regulated Than Financial Advice
Financial advisers must be licensed and meet education and conduct standards. Property investment advice generally sits outside that regime. In its February 2016 report on land banking and property investment advice, the Senate Economics References Committee noted that “real estate property is not defined as a financial product under the Corporations Act”, and that property investors “do not enjoy the same level of protection” as people receiving financial advice.
The committee recommended bringing property investment advice under Commonwealth regulation with a licensing requirement. Until that happens, the protections come mainly from state real estate laws and the Australian Consumer Law, which is why your own questions matter.
Property Investment Scams: Warning Signs Regulators List
Most property investment companies are legitimate businesses. But regulators have warned for years about “spruikers” and schemes that use free seminars and high-pressure selling. The ACCC, as part of a national campaign by consumer regulators, and ASIC’s Moneysmart list these warning signs:
- Free “wealth creation” seminars that lead to paid courses or a specific property
- Promises of high returns with low risk, or “guaranteed” returns
- Pressure to sign up or commit on the day, including same-day discounts
- Unclear costs, fees or commissions
- Claims that a scheme is “government approved”
- Encouragement to buy a property you haven’t seen, or to borrow against your home to fund a course
Moneysmart’s advice is simple: “Never make decisions about money or investments on the spot.”
7 Questions to Ask Any Property Investment Company
- Who pays you if I buy this property, and how much is it in dollars?
- Do you, or any related company, earn anything from my loan, insurance, conveyancing or property management?
- Would the price be lower if I bought this property without you?
- What is the land price and the build price, separately?
- What did comparable lots and homes in this estate sell for recently?
- Are you a licensed real estate agent acting for me, and will you put that in writing?
- If there’s a rental guarantee, who funds it, and is it reflected in the price?
A company with nothing to hide will answer all seven clearly and in writing. Vague answers tell you something too.
How REIN Is Paid
REIN is a buyer-only house and land advocate. We don’t sell property or charge a membership. A REIN service fee applies, agreed in writing upfront. Where REIN receives a builder or developer commission in connection with your purchase, we disclose it and rebate 100% (excluding GST) of it to you. The rebate typically covers the fee and more. See how buyers advocate fees work.
Common Questions About Property Investment Companies
How do property investment companies make money?
Through one or more of: a fee paid by the investor, a commission or marketing fee paid by the developer, builder or seller, lender commission on the loan, and fees from related services such as property management. On house and land packages, the seller-paid commission is usually built into the price you pay.
Do property investment companies get commission from builders?
Many do. When a company recommends new house and land packages from selected builders or developers, the seller often pays it a commission or marketing fee on each sale. Some companies say so in their own terms, and others don’t address it on their website, so ask for the amount in dollars and in writing.
Are property investment companies a scam?
Most are legitimate businesses, but being legitimate isn’t the same as acting for you. Regulators including the ACCC and ASIC’s Moneysmart warn about free seminars, guaranteed returns, same-day pressure and unclear commissions. Check how a company is paid, and get independent advice before you commit.
Is a property investment company the same as a buyers advocate?
Not always. A buyer’s agent is engaged by you, and in NSW must be licensed or registered under a licensed agent. Some investment companies state in their terms that they aren’t real estate agents and owe no duties to buyers or sellers. Ask who the company acts for, and how it’s paid, before you sign anything.
How can I find out what commission is in a house and land package?
Ask the company who pays it and how much, and compare the package with the land and build prices for similar lots in the same estate. REIN offers a free package check that looks at the price, any commission built into it and the contract terms before you sign.
Before you sign anything…
Send us the package. We’ll check the price, any commission built into it and the contract terms, and tell you straight whether it stacks up. Free, no obligation, and we’ll never pressure you to switch.
GET MY PACKAGE CHECKED → or call 1300 446 445
Written by the REIN Editorial Team. Researched with the help of AI tools, then fact-checked against the sources below.
Reviewed by Scott Fraser, founder of REIN, licensed real estate agent (NSW) with 10 years on the developer side of house and land.
Sources
- Freedom Property Investors – Membership Terms and Conditions (clauses 2.8 and 8.2), accessed 9 October 2026
- Property Club – Member Benefits, accessed 9 October 2026
- Positive Real Estate – Property, accessed 4 October 2026
- NSW Government – Using a real estate agent to buy a property, accessed 9 October 2026
- Senate Economics References Committee – Scrutiny of Financial Advice, Part 1 report (February 2016), accessed 9 October 2026
- ACCC – Consumers warned about property investment schemes (24 May 2016), accessed 9 October 2026
- Moneysmart – Investment seminars, accessed 9 October 2026
About this article: This article is published by Real Estate Investors Network Pty Ltd (REIN). REIN is a competitor of the companies named and is not affiliated with, endorsed by or connected to any of them. Company names and trade marks belong to their respective owners and are used only to identify them. Information about each company comes from its own website and the public sources listed above, as accessed on the dates shown, and may have changed since. Statements of opinion are ours.
If you believe anything in this article is inaccurate or out of date, please call us on 1300 446 445 and we will review it and correct it promptly. This is general information only. It does not take into account your objectives, financial situation or needs, and is not financial, credit, legal or tax advice. A REIN service fee applies to our services, and where REIN receives a builder or developer commission in connection with a client’s purchase, it discloses and rebates 100% (excluding GST) of that commission to the client under its written service agreement.