Zack childress,the real estate scams happens on a frequent basis. So for new investors, Zack Childress presents his ideas in this article which will be an eye-opener, you will get to know about different types of real estate scam and how to prevent it.
Automated wholesaling system is used for co-wholesaling purpose and recommended for new investors to do scam-free real estate investment.
- Title fraud
- Online scam
- Training programs
- Home improvement scam
- Dual agent
It begins as identity theft; scammers use fake documents as pretends himself as the owner, uses these documents to do the property transfer, registers for a new mortgage against the property, get all the money to the required account and runs away. The buyer is betrayed and loses all the money in this transaction.
In order to avoid, first find all the details about the seller before purchasing the property. Reliability and reputation are very important. Title insurance is one of the safest ways to insure the property. Many become victims when you fall short of the money. Don’t approach mortgage lenders who exaggerate your income and other financial information. Some of them indulge in mortgage scam where information is misrepresented. Property values should not be inflated.
It happens usually like property is listed for a very low price in the property portal. The fraudsters get access to MLS somehow and steal the information; it goes to an extent where these scammers attend prospective buyers’ messages and calls and represent himself as the landlord everywhere. Then the fraud goes to a level where keys are exchanged. Meeting can happen with potential buyer off-site. The buyer realizes all the things very late and regrets when there is no such land and everything is unreal. Scammers use Google images to create fake property ads.
Property management companies and government have taken necessary steps to prevent scams.You can add watermark so that scammers will not use your picture. You should avoid listing having these words “must sell now, high returns guaranteed high returns, low financing, and no financing”. These are used by scammers to attract buyers.
Real estate free courses, workshops are conducted just to collect money and you will not gain knowledge. So check out who are conducting, venue and reputation of the organization who conducts it.
The team offers too good schemes which sound very cheap, that’s the warning for an investor to avoid such offers. You should first enquire about the company before hiring for doing home redesigning. Ask for contact information; do not give any blank checks as advance payment. Enquire about the experience of the contractor and hire.
The dual agent scam is prevalent; the agent works for both buyer and seller to get high commission. The first-time buyers are usually fooled by the sellers to pay the commission of the buyer’s agent which is actually to be paid by the seller.
To know more about different types of scams, the solutions are given in various articles written by Zack Childress in his REI quick cash system.