Report: Influencer rips off customers with junk properties

Numerous customers fell for an influencer’s beautiful advertising videos and bought junk properties – which turned into a financial disaster for many.

According to a report by NDR and “Spiegel”, the influencer “Immo-Tommy” is said to have brokered real estate for numerous people, which later turned out to be bad buys. Those affected complained in NDR and “Spiegel” that the supposedly simple investment turned out to be a nightmare for them.

The allegations are manifold: the properties were significantly overpriced, renovation work was promised and not carried out, hidden commissions were collected and highly risky financing contracts were brokered.

The well-known social media influencer “Immo-Tommy” has a total of around 880,000 followers on Instagram and 280,000 followers on Facebook. In his videos, he gives tips on finances, investments and special “practical tips for the perfect start in the real estate business”. The man behind “Immo-Tommy” is Tomislav Primorac, who says he became a millionaire in real estate within just a few years.

“Immo-Tommy” advertises an “all-round, worry-free package”: From financing to renovation to selecting tenants, his network takes care of everything. According to information from NDR and “Spiegel”, many of those affected have believed the promises of “Immo-Tommy” on YouTube, Instagram, TikTok and Co. – even a former bank employee and an investment advisor. They were convinced and finally bought a property, brokered through “Immo-Tommy’s” network.

However, reports and documents available to NDR and “Spiegel” indicate that many buyers paid far too much for their properties. The price per square meter of some of the apartments sold was compared with the usual local prices quoted by real estate agents and real estate portals. The result: Some of the apartments were up to 50 percent more expensive.

Many buyers today regret not having viewed the properties in person beforehand. Apparently they trusted the promises of “Immo-Tommy” and his network – a fatal mistake, as it turned out.

On behalf of NDR and “Spiegel”, consumer lawyer Achim Tiffe from Hamburg examined some of the real estate and financing contracts. He described them as “catastrophic”. The cases reminded him of so-called junk properties, which were already around in the 1990s. Properties are sold to people as far away as possible, 500 kilometers away, so that they do not know exactly how valuable the property is, said the lawyer.

Real estate expert Alexander Krolzik from the Hamburg Consumer Protection Center also sharply criticizes the contracts. They are usually combinations of a loan agreement and a building savings contract with terms of 20 years or more – without repayment. This means that interest is paid, but the loan does not get smaller.

In addition, in most of the cases, the interest is only secured for ten years – which is not unusual at first glance. But if the bank comes to the conclusion that the property is not worth what the buyers paid for it, they have to redeem it or provide security. This could lead to the property being forced to sell, says the consumer advocate. The bottom line is that the deal is a disaster for the customers, says Krolzik. Buyers have been “ripped off and ripped off”.

Research by NDR and “Spiegel” also shows that Tomislav Primovac received high commissions from some sales. For example, a property was sold for 166,000 euros – of which, according to the notarized purchase agreement, 49,000 euros went to Primovac as a partial payment. The purchase price for another house was around 550,000 euros – here Tomislav Primorac received 90,000 euros. There were also three-digit amounts.

According to the report, the contracts do not indicate what consideration was given for the sums paid. The buyers stated that they had not been informed about the purpose of the payments. However, “Immo-Tommy” appears to be running a lucrative business with his real estate deals: according to his own statements, he recently received annual commissions in the double-digit million range.

What can those affected do now? Consumer advocate Krolzik advises selling the property again, even if this means making a loss – to put an end to the horror. At least one affected person has already filed a lawsuit against those involved and is demanding that the contracts be reversed.

Consumer advocates and lawyers believe his chances of success are good: it is possible that the duty to provide information was violated. Experts also suspect fraudulent deception, immorality or usury.