Real Estate Shell Game :: Part II
I grabbed this YouTube video from Chris Lengquist’s real estate blog. This one is a little different from the real estate scam that I recently wrote about but you could consider it a variation on the general theme.
A couple of rules of thumb:
If it looks lucrative and easy then you’re about to be taken for a ride. Beware of “package deals” where an advisor delivers the property, the lending, the appraisal and the tenants. These parties, if delivered as a combo deal, will always collude against you. Don’t sign anything you don’t understand. Loan documents can be intimidating for new investors - but if it smells fishy then ask questions until your gut tells you everything is ok. Any counterparty who is willing to be dishonest on your behalf will cheat you in the end. These people in this video aren’t necessarily dumb. The scam artists are pros, and they look for amateurs as their victims.
equityscout.com