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12/02/2013

Real Estate Scams



Investing in Real Estate is not easy. IF recent history were to indicate, you don't need to read media- ask a family member or neighbor who has gone through a short sale, foreclosure or bad real estate deal in the past six years and testimonials are readily available.

But still I see:

Guru's and seminars flooding the market with get rich on buying American Real Estate.

All you have to do is turn on the seminar ( for a cost of five hundred to two thousand dollars) and
you can find deals on Real Estate in all the distressed markets of United States. Then next all you have to do is buy their books, C.D.'s, and legal fees to set up your LLC's and riches will be yours.

In 2013 I have been contacted by nearly a thousand investors from Canada, the UK, Australia, China, even Germany to buy properties valued under $80000 in the US.  The risk seems small from far away but what is not delivered in the advice is:

how to manage good tenants in depressed markets
how to maintain property with an honest manager
how to know when to sell
how to find financing with a sea of paperwork

These "how too's" seem to be the things I would like would be investors to have a plan for when their investment goes wrong.

My top advice to avoid scams:

Buy the best quality property in the best location (close to your home or someone you trust with cash).
Mortgage loans in the United States are full recourse.  Home loans in America will show on your
credit report. Investment real estate in the U. S. is taxable here in the U. S. Ninety-nine percent of lenders will not loan to a LLC or Corporation.  Research before you buy. Get American credit references and an American bank account before you shop. Get more insurance than you think you need.


My list of buzz words and phrases to run from if someone is selling you get rich in real estate:

  air-tight
  always
  anyone can make a killing
  asset protection
  association
  automatic
  boot camp
  bulletproof
  bureau
  Christian
  cinch
  club
  college
  complete
  confidential
  consultants
  cookie cutter
  co-op or cooperative
  creative
  deep discount
  discount
  Don’t work for money. Make money work for you  
  dream stealer
  easy
  easy money
  education
  extension
  flipper
  Florida
  fool-proof
  foreign
  fortune
  gains
  get rich-quick scheme
  global
  gold mine
  insider
  institute
  judgment proof
  land bank
  lazy way
  legal
  LDS         (wonderful loving people who seem to  get looped into these)
  LLC
  magic
  mentors
  money machine
  national
  network
  no-brainer
  No money down
  nothing down
  offshore
  painless
  perfect
  pro
  program
  quick
  Real estate
  remove doubt
  removes guesswork
  removes risk
  riches
  risk-free
  safe
  secret
  Smart   
  success
  sure-fire
  take the fear out
  Tax free
  trust
  U.S. or United States or American
  Utah
  wealth
  win
  wiz

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