I recently seen the I Quadrant's advertisement on Facebook where they advertised to help Singaporeans own 34 properties in 2 years with little or no money. Is it MAS approved? What are the risks? - Seedly
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Anonymous

Asked on 27 Jan 2019

I recently seen the I Quadrant's advertisement on Facebook where they advertised to help Singaporeans own 34 properties in 2 years with little or no money. Is it MAS approved? What are the risks?

Seen their Facebook page (https://www.facebook.com/theiquadrantgroup/), am interested. But seems to be a scam. Just want to check it out.

Adam Koky
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Jacob Chong
Jacob Chong, Executive Financial Advisor at PIAS
Level 4. Prodigy
Answered on 30 Jan 2019

Hmm.... Honestly I am very intrigue by their so call 0 downpayment and owning all the 34 properties without any cash down payment.

I have been in the Banking industry long enough to know where they are going on with the scheme of theirs.

Lets take things into prespective:

Legally, if you are to own another property (investment) you will be subjected to ABSD of 12%, Legal Fee, and what have you, of about 15% in total... That's to the Government. Now after securing your so call investment property, you have mortgage to take note, Maintence fee, rental, Property Tax, insurance etc....

I have seen people doing de-coupling of properties so as to escape the ABSD, then what about the legal fee and the rest.... (In the end, its the lawyer, the bank and the Agent most of all the earns the most) not you. Think about it, when you have no financial means to pay the mortgages who is being sued?

Bank takes back the property (no lost)

Lawyer wash their hands off, because they are only doing the conveyance (money already collected)

Agents earned their comm and now long gone (again money collected)

You? Charged for bankrupcy because you should have known better about your finances.

The funny thing about all these that I have mentioned there are still people in Singapore wanting to buy up property for retirement, for captial gain. When these ads comes up in FB or any social media many rushes in to see and roped into it.

A 1million property (which is very rare now) would cost you to lose 15% to the Government. Thats a Whooping 150k. How then can you make back this 15% initial Loss in a matter of 2 years, 3 years or even 5 years....

Foreigner you say? Foreginers will make up for that 15% lost you made. Statistically, you will know you are just trying to comfort yourself. Government has already limited the number of Foreigners into Singapore, and looking that the tax that they are paying i doubt so.

What they are trying to make up is a Private investment scheme to properties under many co-owners pulling funds and resources together and since you have a miserable 5% share of the subject property you are considered as OWNED A PROPERTY.

I don't know about you but i will Definetly GIVE this A BIG MISS. When Sh**s hits the Fence, you know those gurus that say they are just teaching Singaporean how to own 34 properties for free(trust me they get kick backs from lawyers, agents, developers there is no such thing as free) are already long gone and there isn't a think you could do to them because they are not regulated.

1 comment

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PuffyMellon Tmo
PuffyMellon Tmo

27 Feb 2020

I totally agree
The I Quadrant
The I Quadrant
Level 3. Wonderkid
Updated on 21 Oct 2019

Hi there!

The I Quadrant is not on the MAS Alert List.

  • The I Quadrant does not promote any financial or investment schemes or services and is purely an education company.

  • As an education company, we teach our community how to purchase (i.e. invest) their own properties and support them in their journey (students' choice).

You can verify here: https://www.mas.gov.sg/investor-alert-list

It was a moment of growth for us as a company and we are very happy to say that we have emerged stronger as a team.

We are fully committed to investing in people’s lives, through teaching the art of property investment and even serving as mentors in other aspects – whether in business and entrepreneurship or personal well-being.

With that said, thank you for taking interest in The I Quadrant! We are very happy to know that you are considering our property investment course as a step towards your financial freedom.

If anyone has any questions, reach us directly at [email protected] and we will be glad to address your queries.

To Living Meaningful and Fulfilled Lives,

The I Quadrant Team

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Shawn Lee
Shawn Lee

08 Jan 2020

Hey Jing Yi, you have mistaken, The I Quadrant business model have not changed since day 1. We have always been an educational firm and that is why we are not under the MAS Investor Alert list. You can give MAS a call to clarify if you are still unsure :)
Ninja

03 Mar 2020

Nice try
Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 8. Wizard
Updated on 10 Sep 2019

Its definitely not MAS approved, not saying that is a scam, but MAS does not need to approve every single business.

I would not say its a scam, but its definitely a lot less possible that what they made it up to be. Generally their proposal is closer to an informal REITS among the participants. So why not buy REITS instead of forming your own "reits" with other participants?

Because that can NOT be packaged and sold in a $2997 course. =)

Its more emotionally and prideful for participants to say "I own 34 properties" than to tell people, i have money in a few big REITS thats enough for me to retire with real passive income, no effort, tax-free income, no worries on big economic downturn or bank loan squeeze, and hassle-free investment thatI started in my youth with a couple of hundreds.

Sidenote: I know of at least 2 experienced investors who went bankrupt during 1997. They too were living the dreams back then, leveraging on bank loans and buying condos, industrial properties. Good money.

Once the economy started south, bank will squeeze the rates higher, or ask for top ups to maintain the loan ratio, then you can't sell or rent out because everyone are desperate and then boom!

If you really like properties returns (I will say stock or ETF returns are better than properties) then go for a few REITS. You will be thankful when crisis hits.

if you can't remember 1997 because you are too young, then thats what the course sellers want.

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Cedric Jamie Soh
Cedric Jamie Soh

10 Sep 2019

Thank You!
PuffyMellon Tmo
PuffyMellon Tmo

27 Feb 2020

This is so helpful 👍
Kenneth Fong
Kenneth Fong
Level 5. Genius
Updated on 27 Jan 2019

Hi anonymous, that's a great question and one which was talked about in a recent article here (if you'd like to read more).

From a property investor's perspective, here are some key concerns:

  • What're the consequences if fellow co-owners don’t pay up (especially if loans are involved)?

  • How are you going to evaluate the competence of the manager(s) in charge

  • How easy is it for you to sell your share?

  • Is there such a thing as guaranteed rental rates? (Hint: there isn't)

  • This kinda sounds like buying a REIT, but does it carry any 'unnecessary' level of risk?

As Jimmy Lim stated, I highly doubt that this I Quadrant venture is MAS approved. And as is with all investment instruments (especially those that sound too good to be true), always do your due diligence!

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Yeap Ming Feng
Yeap Ming Feng, Head of Content & SEO at Seedly
Level 6. Master
Updated on 07 Jun 2019

If you have been seeing a lot of such ads around which got you interested, there might be a few things you wish to take note of.

A good article to shed some light on this heavily advertised property investing scheme can be found here: https://blog.seedly.sg/own-x-properties-in-2-years-with-no-money-down-is-it-a-scam/

I will just do a quick summary on this:

  • Technically, it is not a scam or anything. It is just an area where there are lesser rules and regulations with regards to this. Lots of legal grea area and MAS has yet to step in.

  • You are looking at co-owning commercial properties, as there is no ABSD, and also, it can be rented out for higher yield. However, do note that, you do not technically own them, since you do not have the "keys" to these properties.

  • There is little idea on what will happen to your investments should the company cease to exist. Unlike REITs that are traded on the exchange, whatever measures they have in place may lack the necessary foundation with regards to "tanking" investors' loss.

I am not an expert in this subject matter. Definitely keen to hear different point of views!

2 comments

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Teo See Hwa
Teo See Hwa

30 May 2019

Just need to read the words between the lines.
Teo See Hwa
Teo See Hwa

30 May 2019

I just bought a 1 bedroom Freehold at $704,000 with no income and no ABSD while owning 2 private condo and a HDB. The Devil is in the detail.

It is never MAS regulated as MAS does not regulate real estate investments. The regulator that would concern this is the Council for Estate Agencies. You may try raising your concerns to them about the I Quadrant's Facebook advertisement.

Given a choice, I would rather own and rent out 34 fine arts with money down, and I won't have loan repayments and stamp duties to worry about.

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Owhthinkngrow
Owhthinkngrow
Level 2. Rookie
Answered on 22 Oct 2019

I find that their advertisement is creative and misleading to me. I mean that's good marketing but not good for viewers like me because they are very misleading.

Why misleading?

The first question I wanted to ask them is, who owned the 34 properties? Then followed by this question --> 100% ownership? Or shared among people? How much is little money? No money meaning just take a loan? 20% pay by someone else?

For me, if the course is teaching a single person to fully own the property with little or no money down. Then I’m interested. But is it possible? Think about it.

If u don't fully own the properties, and they are shared among a group of people, then the income is shared among the group of people. You are left with peanuts after distributing the money.

I believe MAS has nothing to do with educators like themselves. Unless they start to sell investment-related products.

The risk is the course fee that you are going to pay if you do attend the course.

My personal insight on property investment, just some pointers for you to think about:

1) If you are interested in property investment, read up on properties related stuff, talk to property agents or attend a few free seminars related to properties. Usually, they will share some information which you might not be aware of.

2) Singapore properties are mainly categorized under Residential, Industrial and commercial properties. Find out these 3 categories and their rules for buying/selling them. Then you will see some light as to what kind of properties you can invest in.

2) Singapore law on buying properties is kind of fixed. Trying to abuse the system? I don't think so. So I believe someone has to come out with the cash to pay for downpayment, someone has to take a loan. You just cannot escape this part. So are you capable of paying the downpayment and taking the loan? If you can't, then what's the next possible solution? Group buy? Be creative.

3) Property investment involves a lot more money than buying groceries, so the calculation is definitely important. If you are not sure where or how to start your calculation, ask a few property agents, or google about it. Once you know your numbers, looking for properties will be much easier as you have your criteria. You can Google on property tools and related stuff that can help you to find properties easily. There are such tools online.

4) Gain more knowledge by reading more. The more you know, the lesser the investment risk.

5) Take action.

Most of the information that you need is available to you for free. There is some information that would require some subscription fees.

Before u pay for any courses out there, just make sure that they are going to teach what you want to learn. This is important, because most of the time, what u receive in the course is not what u expect.

If you do attend their course, I believe you are just paying them for their effort to gather the information and share it with you during the course.

They are just more hardworking than most people.

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Angeline Teo
Angeline Teo
Level 5. Genius
Answered on 16 Sep 2019

Yes, it is possible. Is it easy? absolutely not.

There are a lot of legal ways to obtain bank loans and maximise your leverage. Properties can be in companies' names with proper backing and cashflow. You can split properties between couples. You can split between parents and kids.

End of the day, its about leverage and finding. If you are determined, you can find it via your own way or an experienced property agent.

However, do you really want that? Leverage means extra profits.... and extra risks. If there is some bad sentiment on properties, the damage to you would be leveraged too.

All these skillsets are a doubled-edged sword. Even when you possess it, you ought to be careful. only use your leverage when your downside is limited and the upside is big.

Property is a long term story!

0 comments

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William Ng
William Ng
Level 4. Prodigy
Answered on 07 Sep 2019

Buy Reits better...

1 comment

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Jamir Deol
Jamir Deol

07 Oct 2019

Which Reits would you recommend?
Gordon Xu
Gordon Xu
Level 2. Rookie
Answered on 06 Aug 2019

Personally I have attended the Full Course, In my own opinion its not worth it and tome its a total waste of my time. if i am given a choice to choose again I will not join the course.

2 comments

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Lim Boon Tat
Lim Boon Tat

17 Oct 2019

This is so helpful 👍
Jinduo Mu
Jinduo Mu

31 Oct 2019

So bro, u paid $2998 for the course?
Ryan Ong
Ryan Ong
Level 3. Wonderkid
Answered on 04 Jun 2019

For the record, iQuadrant is now on the MAS watchlist.

1 comment

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Lim Boon Tat
Lim Boon Tat

17 Oct 2019

This is so helpful 👍
Colin Lim
Colin Lim
Level 5. Genius
Answered on 29 May 2019

I hate to write la.. But it is possible.. There will be risk. There are plenty of ways as long as u know each and everyone.. Like the banking side, property sides.

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Budhi Darmojo
Budhi Darmojo
Level 2. Rookie
Answered on 29 Apr 2019

Beware...all these Crooks! money gone is...gone!

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Joshua Loke
Joshua Loke
Level 2. Rookie
Answered 3w ago

If they are really as successful as they are at property investing, why were they staying in a 4 room HDB flat?

https://www.sgsme.sg/news/13m-business-loss-proves-priceless-property-couple

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Alan Yap
Alan Yap
Level 2. Rookie
Answered on 03 Mar 2020

They are buying all industrial property. No absd and will not affect your residential property count.

Why not reits then. because the yield and capital gain is better than reits?

You can purchase your own or coshare to spread your risk.

90% loan or even 100% loan if you have exisiting business.

34 properties is alot? what about those people who own buildings?

obviously they know something that general people don't...

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N
Ninja
Level 6. Master
Answered on 01 Nov 2019

I am not on MAS alert list too but you can give me your money and I’ll help it grow ;)

Disclaimer: This message is to let the poster know the logic. Not on MAS alert list doesn’t mean I am safe. There will be loopholes

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Low San Zeng
Low San Zeng
Level 3. Wonderkid
Answered on 01 Nov 2019

When something is too good to be true, it probably is. This sounds like a Ponzi Scheme to me. I would recommend reading through some of the comments here before making a decision on this. In my opinion, I believe investing in REIT is probably better off for you.

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Danielle Arlington
Danielle Arlington
Level 2. Rookie
Answered on 16 Oct 2019

This couple is a total scam.

They did not lose 1.3 million. They STOLE 4 million from their former employer- a very famous IT solutions provider called Commgate: https://e27.co/commgate-working-spring-singapore-help-retailers-go-online-20170707/

There is a police investigation right now, as they forged a bunch of ICV grants to claim money from the government.

They then used this stolen money to buy their 34 properties.

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Danielle Arlington
Danielle Arlington

23 Oct 2019

I was one of your colleagues in the company, so I am speaking as an insider. YOU, Germaine and that CFO you brought in caused the downfall of the company. For those who don't know, Shawn used to own a digital marketing agency. He then had a share swap with Commgate- for which he claimed that he lost 1.3 million. This is the basis for LIE #1: it costs about $80 to register a new company in Singapore. If the company has no worth, is it a loss? Shawn got the better end of the deal with that share swap. Commgate is a multi-million dollar business, his previous agency was struggling. Why will he lose 1.3 million dollars swapping shares in a struggling company with a multi-million dollar company! Lie #2: Shawn and Germaine brought on a CFO who was their friend. They generated heaps of fake invoices, ICV grants amongst them, So the CFO was in cahoots with them. Shawn- you know what's coming to you.
Shawn Lee
Shawn Lee

27 Oct 2019

Hi, there is no Danielle Arlington in the company. Unless you find the need to hide behind a fake profile which tells a lot about your credibility. 1) yes I used to own a digital company with 2 offices, one in Vietnam and one in SG and we were profitable before the share swap. Why would the CEO of CommGate want to share swap with a company in the reds if we are unable to add value to the entire organization? I really wish that I can just publish the P&L of CommGate before we even came into the company, you will be very shocked at how badly the CommGate is doing. Unfortunately, you have no access to them, therefore, it’s hard to blame you for trusting stories rather than facts, since you are not exposed and far from the real truth. The CFO is a close personal friend of Moonshi the CEO and he have been working in CommGate way before I even knew the existence of Moonshi. So you might want to get the facts right. Either way, the gossips and stories have changed so many times that it’s hard to keep track on what’s the new “scoop”. And that’s the scary thing about listening to rumors. However there is only one constant in this entire thing. The stories all come from a singular, inconsistent and very biased source: the CEO of CommGate The truth is that I have gained a lot of experience and will go through that entire mistake again in losing the entire company because I grew much stronger. And the results and what I have accomplished are the fruits of it. Therefore, you can believe a struggling CEO that you believe so much in, or if you are a “real” colleague, you should have my personal number. I will do my best to help you move on in life.
Murdoch Gabriel
Murdoch Gabriel
Level 2. Rookie
Answered on 05 Sep 2019

When it's too good to be true. Think again... But is it possible to have so many properties in 2 years? Yes, u can... Its call flipping. However, I do not suggest do it in SG as the market quite small. You can consider developing countries like the Philippines or Vietnam or Cambodia. However its all at ur own risk so please do ur due diligence. I do have 10 units in the Philippines... This is after months of background checks, research and I even made a trip down to see as well. Wishing all the best.

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Jamir Deol
Jamir Deol

07 Oct 2019

I totally agree