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:
anyone can make a killing
co-op or cooperative
Don’t work for money. Make money work for you
get rich-quick scheme
LDS (wonderful loving people who seem to get looped into these)
No money down
take the fear out
U.S. or United States or American
Posted by Caroline Gerardo