I have seen many property investing Ads that claim that one can buy and own more than 30 properties with little or no money down. In your view, is this possible? If yes, how can one do so, and what are the pitfalls of doing so? - Seedly
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Anonymous

Asked on 13 May 2019

I have seen many property investing Ads that claim that one can buy and own more than 30 properties with little or no money down. In your view, is this possible? If yes, how can one do so, and what are the pitfalls of doing so?

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Krristy Lam
Krristy Lam, Editor at 99.co
Level 3. Wonderkid
Answered on 14 May 2019

There are a number of schemes that purport to do this, but all of them have some variations on the same theme. We examined one such common scheme here:

https://www.99.co/blog/singapore/can-you-really-own-20-properties-with-no-cash-down/

But that’s by no means the only one of its kind. Variations include schemes that get people to invest in an individual, who then purchases properties and divvies out the rental income, or simply to invest in a group of businesses that all own different properties.

While they are not necessarily illegal (many of them are in a grey area), or even bad, they tend to share some common traits:

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It can be difficult to get out of the investment later, when things aren’t going well

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The “ownership” may be primarily on paper (such as if several properties are collectively owned by a group of investors)

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Many of them may not be under close scrutiny or regulation

This isn’t an endorsement or condemnation of any such specific scheme; but be careful of the risks involved. We suggest you seek some form of consultation with legal or financial professionals before you get involved; the cost of consultation is often much lower than what a bad investment can end up costing you later.

Cheers,

99.co

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Angeline Teo
Angeline Teo, Calculator at The Internet
Level 6. Master
Answered on 01 May 2020

Very difficult.

those adverts are saying "no money OF YOUR OWN down".

they are not saying the property can be bought without money down, its teaching you how to use other people's money via loans, partnerships etc.

not very ideal when property prices stop rising and banks start being more stringent on payment.

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Lim Boon Tat
Lim Boon Tat, Mathematics at Cambridge University
Level 6. Master
Answered on 29 Apr 2020

If it sounds too good to be true, it's probably too good to be true. You can also own more than 30 companies with little money down, by buying 1 share in 30 different U.S companies by maxing out your credit card. I advise most young people to focus on what's time-tested.

If you really really feel tempted, i would say go attend the free seminars that they typically offer, just to look-see. And check out MAS IAL list (https://www.mas.gov.sg/investor-alert-list)

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Pascal S
Pascal S, MBA Graduate at Singapore Management University
Level 6. Master
Answered on 03 Mar 2020

Isn't it better to buy an island than to own "multiple properties"?

I mean, I can tell my future in-laws that I own multiple properties simply because, dude, I own the island...and everything on it is technically mine...

(Joke aside) - Pitfall is to believe in such pits.

N.B. The other responses have answered it already

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Davin
Davin
Level 7. Grand Master
Answered on 25 Feb 2020

I think you are referring to an ad by a pretty lady. First, they are a group of 3 ppl that co-owned the industrial properties, and one of them are from wealthy family, hmm...u know how already right...

Pitfalls? you must have very strong active income to support the rental when there is vacancy period. the training fees they collected can easily cover all these expenses.​​​

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