Scams do happen all around the world and similar to any other business; they are quite common in the real estate investment industry as well. While most of the people working in real estate are honest and believe in being ethical, there are people who want to take your money and run. These fraudsters may not know anything about the real estate industry, but use their communication and persuasive skills to make you believe in the deal.
So, if you don’t want to be a victim of the real estate property scam, here are a few things that can be done to avoid real estate investment scams.
1. Take Time to Research
No matter what kind of investment property you are planning to buy, research should be your top priority in order to stay away from the fraudsters. And since we’re living in an era where access to information is literally at the tips of our fingers. Whatever you need to know is available with a few clicks of the mouse. This is the most basic way to avoid scams but it will come a long way. Google about the person you’re dealing with and the property information such as the upcoming plans, current market trends etc. The more critiques you find, the better and more likely will consistent criticisms be true.
2. Check for Certifications
Even if you’re an expert in the real estate investment, it is preferred to take help of a local professional to explore best available options in your budget. So, if you’re dealing with one, make sure to check for certifications before you close the deal. Make sure to know everything about the company, agent, or property manager you are dealing with. Real estate lawyers are also no exception to this rule. Make sure to not feel shy from checking certifications.
3. Get Expert Advice
One of the top real estate tips is to get advice from experts such as a real estate attorney if you want to know how to deal with legal issues. Similarly, when looking for the loan options, get in touch with your bank or a professional real estate agent. Joining a real estate investing club will also provide great advice to avoid real estate investment scams.
4. Don’t Fall for Time Scarcity
In most cases scams come with time scarcity, is the most common thing when there is a scam. In fact, experts claim that time scarcity is the red flag and the right time when you should leave the deal, no matter what you’re planning to purchase. With time ‘limited time,’ fraudsters don’t want you to analyze the scam and calculate risks involved with the deal. Ask the seller or agent if there are future investment options available which you can research about and then invest.
5. Don’t be Emotional
The most important one among the top real estate tips is to not close a deal that is based on emotions. It is advised to be assertive and level-headed when making important decisions. For example, loan modification is a scam where the agency will claim that they get desperate investors out of dire situations. In such situations, scammers will ask for a fee in advance, which should be a huge warning to you.
6. Question Everything
Another best tip when planning to buy an investment property is to question everything that comes to your mind about the property or the entire deal. Know everything about the plan to get involved with. Trust your spidey sense if something feels wrong.