Something bad is happening in the real estate market, and it has been keeping renters and investors on edge in the past few months. It is yet uncertain whether a new type of large-scale real estate scam has been exposed, or if we're talking about a specific case of fraud, but according to the details coming in, there are certainly reasons for concern.
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As real estate prices continue to soar, dragging rent prices up with them, this market has sadly become a safe haven for crooks - the kind who promise innocent investors an unrealistic dream of quick profits or, alternatively, promise unsuspecting tenants the house of their dreams. Such a case has recently been getting the attention of the real estate community in Las Vegas, Nevada, and its surroundings. The website Ripoff Report is where this scam has been exposed.
A multi-layered scam
According to reviews posted on the popular consumerism website, this new scam is sophisticated, and involves many different layers:
Potential tenants
Victims of this scam report that they are promised luxurious living for affordable monthly prices by property owners, and sometimes even shown an example home. They are charged high deposits, worth tens of thousands of dollars, before they even receive the key to their new home. Slowly, over time, these tenants discover how neglected the property is.
One reviewer on Ripoff Report stated that they have experienced "internal electrical problems, fire hazards and water pipes breaking in multiple homes". Another one stated that since these homes are in poor shape and cannot be sold, the property owners "move in new renters constantly so they can keep the old deposits".
Eventually, when these tenants demand maintenance works, there is nobody to talk to on the other side. Furthermore, when they do move out, the property owner disappears and the tenants can dream of seeing any of their hefty deposit back.
Contractors and realtors
The tenants are not the only victims here, though. Suppliers and contractors are also complaining about not getting paid for their services. These property owners keep changing their company names, so disgruntled suppliers cannot take legal action against them. "Over 60 days late to pay contractors," wrote one reviewer.
(Photo from Orathai Mayoeh via Shutterstock)
Realtors are not safe from this scam either, since reports have it that they do not get the commission for the work they do for the property owners. A reviewer has even gone as far as claiming that realtors are "screwed out of their fees".
Buyers and investors
Even those fortunate enough to have enough money to buy real estate, instead of renting, are not safe from this scam. They are also promised luxurious properties and charged large deposits, only to face a bitter and disappointing reality. Another review posted on Ripoff Report clearly claims that "anyone doing any business with these thieves will regret it!"
One name has already been exposed
Luckily, these and other reviews have already assisted in successfully exposing one example of this type of deception. Avi Zalman, owner of the company Plasim Homes, along with his partner D'Aria Couture, are at the center of attention right now. Reports vary around the amount of money already stolen from innocent people. Some claim that Zalman has managed to steal around "300,000 in renters' deposits" over time, while others say that the figure is closer to over "150,000 in stealing deposits last year alone". This way or another, we are apparently talking about a shameless, dangerous crook to be aware of.
Zalman's shady background
At this point, it is important to emphasize that Avi Zalman's name has already been tied with criminal activity in the past, in his homeland of Israel. Gabby Paran, former Mayor of Ramat Hasharon, was accused and found guilty of receiving a bribe from Zalman around 20 years ago, granting him and his company construction benefits in return. It must be noted, though, that Paran eventually reached a plea bargain with the prosecution, and the charges of bribery were reduced to fraud and breach of trust.
All in all, we do not advise anyone to enter into business with this man and his company. Furthermore, we urge anyone planning to move into a home in the Las Vegas area, or to buy one for investment purposes, to conduct a thorough background check of the property in question and its owners, in light of all that has surfaced recently.
