IGrow Wealth Investments

[^^vampire^^]

Can not afford? Not sure what you mean there? You pay them fees to get a tenant on your behalf and them collecting the rent and doing inspections like any other letting agent would. That is if you choose to make use of them. Else you can just buy a property through them and manage it yourself.

Their business model focuses on entry level high demand high rental return property. Those new development where working young couples can afford a decent rent but cannot afford to buy aka most people in their 20s. People who want to live in new development areas close to shops, schools etc with security but who cant afford to buy.

Apart from the marketing style and the website that looks like a "get financially free" scheme there is nothing wrong with it. Its simply property investment. Most people buy an investment property they themself would live in when the better return is found in the lower cost market where your shortfall is as low as possible.

Well invest and let us know how it works out for you. I've never heard of anyone coming off first best with any of these schemes. Someone always winds up getting prosecuted for fraud and there's always tons and tons of grannies and grandpas posting how they lost their retirement in the promise of 100% returns annually.

 

[^^vampire^^]

I can haz?

U def can haz!!!

 

[Stefanmuller]

Well invest and let us know how it works out for you. I've never heard of anyone coming off first best with any of these schemes. Someone always winds up getting prosecuted for fraud and there's always tons and tons of grannies and grandpas posting how they lost their retirement in the promise of 100% returns annually.

Explain to me then how this "scheme" works?

Its not a scheme. You simply buy a property in a new development and then rent it out. People have been doingit for years. I rent in the complex I live in. Same story.

You can go to the sales office at Buhrein estate or whatever new development and go buy a unit and rent it out. This is no different. Igrow just markets these units and offer rental management services etc as does Seeff, Pam Golding etc. Igrow just focuses on entry level properties with higher yield. Or you can live in it yourself.

 

[siasvosloo]

Hi All
go google "kings investments Wellington"
Same concept and see how people lost R600 Million in 2009

 

[Stefanmuller]

Hi All
go google "kings investments Wellington"
Same concept and see how people lost R600 Million in 2009

Two totally different scenarios. With the Kings scenario investors put money into the Kings companies or fund for them to invest in property. With igrow you physically buy your own title property ie the property is registered in your name as well as the bond. You are not investing in some sort of fund that they manage. Your only risk is that you might buy a poor property and not get the rental yield or the area does not develop as projected. The choice of property os yours though.

 

[Tansini]

Stefanmuller "over optimistic" is not accurate. Complete fabrication of impossible returns in order to lure inexperienced investors is what is it is.

make sure you have between 20 and 30 times the shortfall they tell you that you'll need

I've looked through ally their "financial analysis" documents. They are effectively selling "free property". That's not over optimistic. Thats a dirty lie and people are going to get hurt

Even a first year finance student could identify this as a scam

 

[surface]

Its not a scam though. You invest in properties directly in your own name. They make money from marketing the development and from management fees of managing the rent (if you choose to use them). Also make money from using their lawyers and bond originators etc.

The only risk is possibly buying into a development where the rental projections and demand and capital growth will not meet what they state.

Are you in any way related to this company? Either as "investor" or part owner?

 

[dunkyd]

Hold on please...must get popcorn and get comfortable in my Lazyboy.

 

[Stefanmuller]

Are you in any way related to this company? Either as "investor" or part owner?

Nope, not at all. I have just seen this long before Igrow started actively marketing it. It is nothing new. There is a difference in these properties and they type of properties people typically tend to invest in. You can find these if you look around. I am an accountant and our firm has many higher wealth clients (or clients with access to cash flow, who can purchase 5 properties) who are doing this and have done so for years. Its not the type of properties you yourself as investor would want to live in, but that does not matter. Your tenant wants to live there because the rent is attractive for a brand new place close to work/uni etc.

Agree with you that it is high risk for the average joe first time investor, but you have to do your homework and at least have some sort of buffer cash. It is rental afterall and has its risks. So yes, the marketing can give the wrong impression but they are not lying or scamming. You should be smart enough to identify your personal risk when actually looking at it yourself.

 

[Archer]

Stefanmuller "over optimistic" is not accurate. Complete fabrication of impossible returns in order to lure inexperienced investors is what is it is.

make sure you have between 20 and 30 times the shortfall they tell you that you'll need

I've looked through ally their "financial analysis" documents. They are effectively selling "free property". That's not over optimistic. Thats a dirty lie and people are going to get hurt

Even a first year finance student could identify this as a scam

20 - 30 times
Seems more like a case of you needing to go back to grade 1 math class

But like Stefen says, please explain to us all how buying a house, and renting it out (but with all admin running through one company) is a scam? Not just a potentially bad investment, an actual scam

 

[^^vampire^^]

20 - 30 times
Seems more like a case of you needing to go back to grade 1 math class

But like Stefen says, please explain to us all how buying a house, and renting it out (but with all admin running through one company) is a scam? Not just a potentially bad investment, an actual scam

Maybe not a classic scam but they encourage you to buy property so they can manage it. Not a problem in and of itself but encouraging people to buy property so they can make tons of money encourages bad decisions. People will buy property and once they have "broken even" on the payments (the rent covers bond/rates/taxes/levies) then they are encouraged to buy another and another. Obviously the more property you have the more they have to manage and more income for them. At some point these people will have a handful of properties and if at any one time 1 (sometimes 2) or more properties don't have tenants or require major repair then the owner is screwed. The owner then takes on external debt to service the debt of not having a tenant/repairs and so it continues.

Eventually the owner has all his properties repossessed to cover his bonds, still has debt repayments to pay off the loans he took to cover the months he didn't have tenants/repairs and is blacklisted, probably also losing the modest house and car he had to begin with. So the owner is now screwed for life and the management company moves on to the next person.

Anything with "make a **** ton of money" or "be rich" and similar always has some way where you get screwed out of your money (even if just potentially as all the risk lies with you). Yeah this might work for some people that understand how finances work and know how to cater for properties needing repairs or have budgeted to take the knock if they don't have tenants - but these kinds of people are already doing this type of thing themselves and don't need a website to tell them how "to make lots of money". They are quietly making a success of it because they have planned the whole thing properly. The people that get "scammed" so to speak are the ones that can't really afford the property in the first place and can't handle a single month without tenants and hence take all the risk with this "method".

 

[mountainboy]

Those days of getting easy loans for multiple bonds is long gone. What you've described happened during the boom which was the exception rather than the norm, easy credit died a painful death

It's clearly not a scam but I will agree that there is vested interests, encouraging someone to invest in a product where you have financial gain. It's like your financial planner pushing a product onto you which is not in your best interest but gives him best commission

 

[SauRoNZA]

Seems they are also Estate Agents.

http://www.property24.com/for-sale/agency/igrow-wealth-investments/12146

Doubling their money by also selling you properties for the portfolio they've recommended?

I agree not quite a scam but as said above they only have their own interests in mind.

 

[sonxEr77]

Anyone using them since this thread? I went to see these guys 2 days ago and my approach is to get a bond for 3 properties say max R2.1m (each property roughly 700k) with the hope that i'll get what iGrow projected as rental income for each property. I know for sure i will not have finance to pay those bonds should iGrow not get tenants as they promise, but they mentioned an insurance which can cover for any lease dispute with tenants or rental defaults covering for a period of 6 months. Not sure if i should go ahead ....

They use a fomular to project yield on rentals which they call RVR (RVR = Rental Returns / Bond Repayments), and select areas where they believe the ratio will be close enough to 1.

[EDIT] forgot to mention that they also offer a Trust account with shelf company tfor all properties to avoid tax on income, which i'm to also consider, where i can add beneficiaries and 2x trustees (iGrow and myself)[/EDIT]

 

[Brexit]

My advice: Stay away from them. All they are interested in is getting commission on the properties they sell. Then getting more money out of you to setup a complex system of trusts which you do not need in order to make more money out of you. I had recent dealings with them. They are very keen to talk to you until you bought some properties. Thereafter when things start going wrong they refuse to answer yours calls and emails. Jacques Fouche is one of the most dishonest peolpe I have ever met. STAY FAR AWAY!!

 

[Thor]

^Nice name

 

[sonxEr77]

My advice: Stay away from them. All they are interested in is getting commission on the properties they sell. Then getting more money out of you to setup a complex system of trusts which you do not need in order to make more money out of you. I had recent dealings with them. They are very keen to talk to you until you bought some properties. Thereafter when things start going wrong they refuse to answer yours calls and emails. Jacques Fouche is one of the most dishonest peolpe I have ever met. STAY FAR AWAY!!

I did stay away, i agree on not responding to emails and calls

 

[Archiryan]

Thank you

I understood the purpose of the site was to offer peoples past or ongoing experiences with a particular product or service in order for those interested to gain insight before becoming invested.

I just read through 3 pages of utterly USELESS drivel from people that clearly know nothing about this company or their business model. There are some even lambasting the CEO, but with no argument to back it up whatsoever. I met the guy last night and he seemed very professional and competent. Obviously this not proof of anything, but I feel like it's at least a hell of a lot more than others have done.

Please, if you can't back up your statement with evidence, or if you actually just DON'T KNOW anything about the comp then do shut up. IF you have however had a good experience, or been swindled, THAT is what readers would like to know about.

 

[Pakka]

I think those videos on their website is cringe worthy enough to deter anyone with half a brain

 

[MickeyD]

I understood the purpose of the site was to offer peoples past or ongoing experiences with a particular product or service in order for those interested to gain insight before becoming invested.

I just read through 3 pages of utterly USELESS drivel from people that clearly know nothing about this company or their business model. There are some even lambasting the CEO, but with no argument to back it up whatsoever. I met the guy last night and he seemed very professional and competent. Obviously this not proof of anything, but I feel like it's at least a hell of a lot more than others have done.

Please, if you can't back up your statement with evidence, or if you actually just DON'T KNOW anything about the comp then do shut up. IF you have however had a good experience, or been swindled, THAT is what readers would like to know about.

What was your experience with them like?