If you have seen an ad of I Quadrant popping in social media or elsewhere on the Internet while you surf it, you might be wondering if I Quadrant is a scam. In this article, we’re reviewing the truth to tell you what it is.
What is I Quadrant? Have you heard of it? You might have seen many banner and textual ads popping up here and there during your surfing on social media or elsewhere on the Internet. These ads contain promises of earning a steady rental income from the property located somewhere in Singapore. However, to find out details, you have to pay €3-4 thousand Euros in most cases, depending on how you enroll in their offer of the educational programme.
Is real estate investing with I Quadrant true?
Well, real estate investing is not something new at all. And, with such a powerful Internet of the third decade of the 21st century, there is nothing outstanding in the fact that an investor from one point of the globe might be holding assets physically located on the opposite point of the globe.
What’s so peculiar in the fact of investing in some real estate fund or pool? If you’re reading this article from the US, UK, or Canada, you should already be familiar with hedge funds. I Quadrant, officially, a private educational programme, offers the analogy – you should pool up with someone to invest. You could opt for investing in assets like stocks, securities, bonds, and derivatives, or invest in real estate objects. After investing in some management company, which runs multiple objects, letting them for rent to tenants, you, ideally, should start receiving profits, around 5%-15% for the entire term of the investment. This is what property investments are all about.
What’s good about pooling the money is that the management company establishes its own minimum entry threshold, which in modern days can be very, very low – just a few thousand Euros.
But what I Quadrant company actually offer in its education? Many students of its classes have learned something that looks more like purely theoretical knowledge:
- An investor should seek large leveraging of his or her own cost to buy some property to let. Advice by I Quadrant sounds like leveraging up to 90% to get something in the range of €0.5-€1 million to let it for rent. Even with that high leverage, it is still unattainable for many regular people to accumulate around €100,000 for the initial payment.
- I Quadrant tells that after investing, people may no longer work for a day for the rest of their lives. But they don’t tell that investing in a property, finishing or renovating it, running, and dealing with tenants, fixes, taxes, utility bills, and the rest of things is actually ten-fold bigger work than a regular day job is.
I Quadrant also doesn’t tell about real risks of their calculations, such as property price drop, risks of tenants’ down payments failure, dealing with ‘professional tenants’ (which will decrease cash inflow), risks of property idling during low months, risks of damage and closure due to the future Covid-related waves of lockdowns, and – what’s most important – paying utility bills (which eat up to 50% of the rent every month, which the guys from I Quadrant simply don’t know or wouldn’t tell about).
Yes, I Quadrant is definitely not a scam. But what they tell is a pure theory and does not include in calculations on the cash flows such crucial expenditure factors as income taxes, property insurance, utility bills, fixes, the salary of workers running the property and dealing with tenants, fixes, advertising, and so on. Also, the education programme considers that banks will be willing to give out 80%-90% of the cost of a very expensive property to everyone, even without experience and with no extra collateral (no, they won’t). The I Quadrant classes also offer their students to pool up with their other students. But simply wonder – why from little to no one of them did this so far?
If you still want to enroll in their classes for 3-4 kilo Euros each, where you will be told nothing but theory, beautiful only in the heads of people-company starters, then visit this page: https://iquadrant.com/. But if you’re looking for something real – not paying your money to a bunch of kids – then try investing in pooled real estate companies or bring your money to the bank.