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‘No Money Down’ Properties – Scheme or Scam? (Part 1)

Even if it’s 100% financed, a bad property is a bad property!

There are many myths about doing property deals. Most contain a grain of truth – and a lot of misunderstanding.

Several printed advertisements and mass emails in the past couple of years have been exhorting that one can invest and own properties, with no money down. One advertisement even claims you can make millions of dollars with no money down in just 24 months!

Essentially, the advertisers would run a paid (or most of the time free) seminars to induce participants to sign up for their property courses that come with very hefty fees in the thousands of dollars to learn their ‘Secrets of the Experts’ property strategies that any average investor could apply with success. These advertisers would also sell you overseas properties on a no money down scheme and claimed they come with high returns.

Scheme or Scam?

The biggest question for a property investor is always creative financing, how can I put a deal together with little or no money down? To be honest, in almost any property transaction, a decent amount of money would have to be put down. (stamp duties, legal, renovations and other upfront fees) Of course, for any property investor, the ‘big dream’ is ‘No money Down’. Although in theory it sounds very attractive and might just be doable, the truth is most average Singapore buyers will never see the opportunity to do it in their lifetime.

These ‘property gurus’ use the same tactics as buying lottery, they promote the one or two people that succeeded and neglect telling you about the bad side of the deal and the near non existence of you not turning a profit. Maybe that’s why they should be termed ’seminar gurus’, rather than self-proclaimed ‘property gurus’ because they are more adept in making money from selling books, CDs, seminars and workshops to participants, rather than applying these theories on their own, or then even making money from their actual i.vestments.

The term ‘No Money Down’ simply means 100% financed, by other people’s money in other words. It is financed by someone else’s money for the down payment. It requires tremendous leverage and a very high degree of investor knowledge and expertise to even pull it off profitably.

My late multi-millionaire grandfather would be laughing out loud from his grave if he even knew such self-proclaimed ‘property gurus’ even existed to promote such questionable investment strategy to the average buyer in today’s highly volatile property market.

My family owned businesses and real estate developments, both overseas and Singapore. We owned several properties in the prime districts as well as commercial buildings in the central business district of Singapore. We are also property developers ourselves and have had built terrace houses and apartments in sub-urban areas. All these were financed with help of banks loans and cash from other businesses, which were all painstakingly built up by my late grandfather over 4 decades! Never had he ever mentioned that one can buy properties on a ‘No Money Down’ scheme, certainly NOT for the average Singapore retail buyer.

Psst..! Would you like to discover “Secrets of how to own properties with little or no money down?” or “How to own 3 properties with just one property?”

Psst…again! Would you like to discover these ‘secrets’ for FREE…by simply having me sharing with you on my blog?

It means you won’t have to meaninglessly cough out thousands of dollars just attend these workshops or seminars that teaches questionable investment techniques, claimed you can own properties with no money down, peppered you with lots of crappy motivational talks, then sell you properties at the end of the workshop saying you must take action now and can become soon-to-be millionaires upon graduation.

Psst…again & again! Would you like to know WHO is really making the millions? Is it you…or is it really these seminar providers who charges hefty course fees? (eg, $3,000 X 30 participants = $90,000 X 12 times a year, or just once a month = $1.08 million in revenue!)

Yes! I am sharing all these dirty little so-called ‘secrets’ with you in my next blog…

‘No Money Down’ Properties – Scheme or Scam? (PART 2)

In Part 2, will share a few ‘No Money Down’ techniques for property investment and what risks they will pose for the average Singaporean buyer.

Till then…always invest with your head and not your heart!

Click Here To Find Out How You Can Harness Your Intentions And Turn Them Into Reality.

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Your friend,

Gerald Tay

 


About the Author

Gerald Tay Author, entrepreneur, professional investor and loving father, runs crei-academy.com with a tongue-in-cheek approach to property investment - and himself. He is widely regarded in the industry as 'The Common-Sense' Investor. Gerald writes with passion and straight-forwardness, disclaiming wild claims and impractical investment strategies behind lies and ignorance pervasive in the property industry for vested interests. His well-known statement, "All I did is to value my investments with science, logic and common sense.'

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