We review Invest in Rooms – unregulated care home investment paying 10% per year

Invest In Rooms logo

Invest in Rooms offers a range of unregulated property investments. At time of writing it is promoting a care home investment which offers returns of 10% per year “guaranteed for 25 years”. The offer includes a commitment to buy back the room after 6 years for 110% of the initial investment, with the buyback rising to 125% after 25 years.

Who are Invest In Rooms?

Stuart Gibbons
Invest In Rooms managing director Stuart Gibbons

Invest In Rooms’ “About Us” page lists as its first director Stuart Gibbons, who modestly describes himself as “Sales and Marketing Director”. I say modestly because Stuart Gibbons is, in reality, the managing director and defacto owner of Invest In Rooms, which is how his LinkedIn page describes him.

Companies House shows that Stuart Gibbons was initially the director and owner of Invest In Rooms Limited. He then passed the directorship to a Mrs Janet Gibbons in 2014 and the shares in 2016.

Invest in Rooms’ last accounts to 31 December 2019 claim that it was a dormant company at that time – which is odd as its website was certainly active in 2019.

Gibbons is also the owner of Millbak Limited, an unregulated investment promoter. Among the investments previously promoted by Millbak are Colonial Capital (collapsed), Dolphin Trust (in default) and the Bar Works Ponzi scheme.

How safe is the investment?

Invest in Rooms claims returns from its care home investment are “Guaranteed for 25 years”.

On its About Us page it repeatedly and misleadingly compares the returns offered by its high-risk investment with deposit accounts. It also nonsensically claims that “pensions produce zero to 1% average return”. (A pension produces the return of whatever it is invested in.)

Thus enabling investors, both cash and pension fund holders, to invest in one of our property investment opportunities. Why would they do this? Pensions produce zero to 1% average return, and bank interest is circa 2% pa – our developments produce average of 10% pa over 50% ROI.

Result – a bigger pension and for cash investors far better returns than building societies or banks.

It rambles on:

How can an investor receive a return that benefits them? Certainly not from a bank or building society. Shares are a risk unless you’re the broker and we ALL know property is the key. But buying a house, renovating, dealing with builders, architects, planners and then tenants can all be a nightmare.

Will the house go up in value or could it go down?

Care homes – and rooms in them – can also go up and down so what point Invest In Rooms is trying to make here is unclear.

The fundamental issue is that investing in one of Invest In Rooms’ care home rooms is an investment in Invest In Rooms itself, not in property, as if Invest In Rooms fails to generate enough income from your room, you are relying on Invest In Rooms to pay your income. In other words, it is an investment in a micro-cap company which was dormant as of December 2019.

As the secondary market for care home rooms is almost non-existent, your returns are also dependent on Invest In Rooms’ commitment to buy back your room from the 6th year onwards, which will depend on their financial state at that time.

Should Invest In Rooms run out of money to pay the 10% returns or buy back the rooms and default, there is a significant risk that investors will not be able to sell their rooms for as much as they paid for them to a third party. A room in a care home to which the care home owner controls access is a very different asset from a buy-to-let flat to which the investor controls access.

In the extreme case, the investment in the care home room could be worthless if the care home shuts, meaning the room generates no income, and nobody is willing to buy out investors who own leases on individual rooms in order to take it over.

Investors relying on the “guarantees” provided by Invest In Rooms should hire professional due diligence specialists (paid by themselves, not Invest In Rooms) to confirm that in the event of a default, the assets of Invest In Rooms would be valuable and liquid enough to compensate all investors. Investors should not simply rely on what Invest In Rooms tells them about their assets.

Should I invest in Invest In Rooms?

This blog does not give financial advice. The following are statements of publicly available facts or widely accepted investment principles, not a personalised recommendation. Investors should consult a regulated independent financial adviser if they are in any doubt.

As with any investment in an unlisted micro-cap company, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.

Any investment offering returns of 10% per year is inherently very high risk. As an individual, illiquid security with a risk of total and permanent loss, Invest In Rooms’ care home rooms are much higher risk than a mainstream diversified stockmarket fund, let alone cash accounts.

Before investing investors should ask themselves:

  • How would I feel if the investment defaulted and I lost 100% of my money?
  • Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?
  • Have I conducted due diligence to ensure Invest In Rooms’ “guarantees” can be relied on?

If you are looking for a “guaranteed” investment, you should not invest in leases on care home rooms with a risk of up to 100% loss.

20 thoughts on “We review Invest in Rooms – unregulated care home investment paying 10% per year

  1. Do not invest! I, and many others, have lost money with Stuart Gibbons through his other company, Millbak Wealth, Company Number 08342531. He’s pushed scam FX, Litigation Funding, Dolphin Trust to name 3, and left a trail of failed investments/lost money for his ‘clients’!
    Well done for highlighting Brev, hope this at least dissuades others from investing with this loathsome individual!

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  2. Brev or whatever his name is is a liar!
    As agents we don’t take clients money.
    As agents we provide information only.
    Any investment comes with a mass of due diligence.
    And all the above comments are false.
    If you purchase a room you use a solicitor, who is obliged to act as if you were purchasing any Propery investment.

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  3. Brev or whatever his name is is a liar!

    Feel free to point out any lies in the article.

    As agents we don’t take clients money.
    As agents we provide information only.

    Offering a 10% assured yield to investors and a contractual buyback is not acting as agent, it is offering a security.

    I hand Invest In Rooms a load of money and in return I receive a room in a care home and an undertaking to pay me 10% of what I handed over every year and a guarantee to pay my capital back (plus an uplift) after a given time period, in exchange for the room back. This isn’t exactly a library service, is it.

    Any investment comes with a mass of due diligence.

    Due diligence does not “come with” an investment. Due diligence consists of the investor independently verifying what the people offering the investment have told them. Anything that comes from the investment scheme or parties paid by the investment scheme is irrelevant from a due diligence perspective.

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  4. Invest in Rooms receive agency commission.
    They don’t take investor funds.
    Investors pay solicitors.
    So how can Invest in Rooms loose money if they never receive it?

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  5. This is from Invest In Rooms’ own public-facing website:

    We have acquired the Teesdale Lodge Care Home, 42 rooms + 2 for relative visits.

    We are offering the initial 12 rooms at £69,500 with 10% annual yield, payable every 6 months and Guaranteed for 25 years.

    There is a buyback at year 6 of 110% which increases every up to 25 years, to 125% buyback.

    That’s “We have acquired” “we are offering”, not “some unnamed third party who pays us commission are offering”. Reviews are based on published investment literature and if your website is inaccurate, that’s not my problem.

    Assuming your website is not inaccurate, I hand over £69,500, Invest in Rooms hands over a lease on a care home room and more importantly guarantees to pay me £6,950 a year for 25 years, and £76,450 after 6 years in exchange for the room back (more if I wait).

    That means I am investing in Invest In Rooms, with the return of my investment dependent on Invest In Rooms fulfilling its commitment to pay me 10% a year and buy the care room back off me after 6-25 years.

    Whether some solicitors shuffle some money from A to B along the way does not alter that.

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  6. To repeat Invest in Rooms don’t receive investor funds.
    And no one has ever paid Invest in Rooms or you mention Millbak any funds and as such no loss could be incurred by either company who acts as agents.
    Hence claims of losses by either company is untrue.
    And why is investing in a fully operational, purpose built care home, a bad investment?
    Happy to hear and debate losses if they have ever occurred?

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  7. To repeat Invest in Rooms don’t receive investor funds.

    So if “we”, the entity who hands over a room in a care home it owns in exchange for the investor’s £69,500, and contracts to pay the investor 10% a year and buy their care room back after 6+ years, isn’t Invest In Rooms as stated on your own website, who is it?

    And why is investing in a fully operational, purpose built care home, a bad investment?

    Nobody’s called it a bad investment. Whether an investment is going to go bad or not is only going to become apparent with time. Investing in a security (the contract to pay 10% per year and buy the room back after a given period) offered by a small unregulated company is however inherently high risk.

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  8. Except we are not offering the yield or the buyback.

    I asked very clearly “then who is” and you haven’t responded.

    You can either answer the question, or we’re done here.

    And you did suggest it was a bad investment.

    The review is right up there for everyone to see. No-one uses the word “bad” until your comment.

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  9. [Edited: Feel free to confirm who, if not Invest In Rooms, takes £69,500 from investors in exchange for a commitment to pay them 10% of their investment per year, with a guarantee to return their original capital plus an uplift in exchange for the return of the care room lease after 6 years.

    If Invest In Rooms’ own website is inaccurate and the properties are actually owned by somebody else, and likewise the accompanying investment securities are backed by somebody else, I am more than happy to amend the review. But given that Invest In Rooms’ own website explicitly says that it’s Invest In Rooms issuing the security, I’m not going to amend the review on the basis of vague “Mansgment companies in all sectors issue investor contracts” rambling.

    Further waffle will be deleted. -Brev]

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  10. [Edited: More off-topic waffle removed. If you’ve got anything to contribute on Invest In Rooms’ investment opportunity then feel free to share it. Appeals to authority and other fact-free content will be treated as spam. -Brev]

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  11. If the introducer cannot understand that their own website is incorrect and misleading, how watertight do you think their due diligence processes are?

    Every single introducer that I have spoken to has either not understood or has refused to acknowledge that their investments were not suitable for retail investors.

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  12. Please never invest with stuart. He kept me 3 k deposit after a solicitor said the deal was flawed. It was him that picked the solicitor originally . I am happy to share all emails with anyone that wants to see them. Please email on me on

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  13. Can anyone give me an idea what the agent’s commission is on the introduction of these rooms ??
    Return is even higher than 13 % if agent’s royal commission is deducted….

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  14. Completely agree, Stuart is NOT to be trusted. Stay away at all costs! We we’re scammed by him twice. I can’t give details as there is a legal case pending.

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  15. Hi
    That’s funny Stuart has a short memory as I paid my 3 k deposit into Millbak bank account direct. More lies … happy to share confirmation of same. Maybe the confirmation might refresh his memory 🤥🤥🤥

    Like

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