Politics and Business
Red Flags: Five Property Investment Scams To Be Wary Of
Property Investing is a promising career choice for many who want to be their own boss. They like the idea of being their own boss and leading the charge to financial independence. It is an excellent way to earn money. However, there are pitfalls to be wary of. Some people, however, enter this arena for the same reason: financial independence, but they go about it in less-than-honest ways. These are the people who have scammed before in other areas, so they have experience. Someone new to property investing is new to the game, so it’s easy to fall victim to a scam. Here are some tactics to look out for so property investing can be a lucrative career choice.
The Seminar Angle
Nothing learned from a paid seminar cannot be found and learned from internet searches and other people in the field. Seminars promise methods unique to the field or other ways of investing that will yield a significant amount of money quickly. While seminars in and of themselves are not illegal, people pay for something they will never get: Rich quickly. The only people getting rich quickly here are the ones holding the seminar. The attendees get nothing they could not have gained on their own.
The Online Shell Game
Taking legitimate For Sale ads on MLS sites and reposting the information in their own words and website or advertisement is something else that should be looked for. The best place to look for property to buy for any purpose is on an MLS real estate site or the site of a real estate company. Better still, find a licensed agent and talk to them directly and in person. They will not charge outside any commission they receive for a real estate transaction. Much like the ACA Group, Real Estate agents only charge once a transaction is final after a potential client has all the information needed.
After the seminars are avoided, and the property has been bought, fixing it to the degree needed to make money is the next thing to do. When people get involved in real estate on this level, their name is public as to what they are doing in real estate. Home Improvement scammers know where to find names and addresses, and they may start contacting new property owners with offers to help. The main red flags here are people who promise to do everything required for a low cost, demanding money upfront, and are very aggressive in their approach. Legitimate contractors do not operate this way. Nowadays, especially when contractors are backed up for upwards of a month, they certainly do not need to “cold call” anyone. This is the job of the property owner or their agent, who legally acts on their behalf.
As you can see, these scammers will try to get people at every game stage. From the beginning to the middle to the end, they are experienced and good at what they do. The best way to thwart their methods is to see them coming the way they see inexperienced investors coming and not associate with them in any way. The best way to avoid getting scammed is to kill the prospect before it arrives at the front yard.