Real estate investment is quite a significant step to make. When buying a home or even renting one, things have to be considered to avoid any complication in the end. Aside from preparing yourself to take part of technical nature of the real estate industry, you should also be aware of some scams and fraud lurking in the background of this multifaceted industry. One of the much known real estate scams was highlighted by Eric Alt in his article:
Hey, Wanna Buy the Brooklyn Bridge? The Craziest Real Estate Scams of All Time
If you believe that, I've got a bridge to sell you...
How do you know you're a legend in the con game? When your schtick becomes so well-known it evolves into an idiom used to describe gullible people. That's the legacy of George C. Parker, who set the standard for New Yorkers bilking tourists back in the late 1880s when he "sold" the Brooklyn Bridge, sometimes twice in one week. Source...
Though the story is quite absurd, it still a historical fact that such real estate scam victimized some prospect buyers or investors. Now In the present day, there is still some fraud in the industry, other are even sophisticated that an investor would actually fall into it. And here below are some valuable tips on how to spot a real estate fraud:
How to Spot 10 Common Real Estate Scams
-Phony Seminars
This is a big one and often seems entirely legitimate but this one also falls into the "if it's too good to be true, it probably is" category. The problem with this particular scam is that initially, there is often no cost to you. You'll be offered free tickets to a seminar, usually offered a free gift for attending and promised that you will not be subjected to high pressure sales tactics.
-Renting" Foreclosed on Houses
There are a few ways this one works. Sometimes the perpetrator is a con artist who works the scam much the same way as the scam we talked about above with vacation or seasonal homes. Other times, the homeowner themselves are the perpetrator. Read more...
You should be careful on who to trust and connect with in the real estate industry. It would be better to keep in touch with people who have established their credentials in the real estate industry.
