Real estate investing can really be helpful when it comes to making a good deal of money buying and selling real estate properties. The problem is that many of these investors are scam artists. There are investors out there that don’t have your best interest in mind.
Here are a few tips to help you notice scams and avoid them.
Most of the untrustworthy real estate investors will stalk out their victims. They will look for foreclosure notices and try to seek out those that are in financial hardship. They will seemingly be the answer to their problems, and promise that they will be able to stop their home from going into foreclosure. Once they have your attention, they will usually want to buy the house out from under you for little to nothing.
There are many ways to prevent foreclosure that will not require you to get rid of your house. If you are about to be facing a foreclosure, then you will want to talk to your lender about your options. You can usually set up a new repayment plan or take advantage of many other programs that they have to help you keep your home.
If you do not qualify for the programs offered by your lender, then they may be able to help you in other ways. You might be able to deal with a realtor and sell your home to recover more money. For instance, if you owe $250k on your mortgage and it is appraised at $235k, you can sell it for a minimum of $230k. You will usually have about six months to sell your home if this is an option for you.
Another real estate scam that is really popular involves paying for investment courses that will often times cost you a whole lot. The scam artists can talk you into buying property that doesn’t require you to come up with money up front. They will usually offer you secrets of the industry and bonus gifts that sound very appealing.
While there are some courses out there that are deemed legit, most of them are not. You don’t want to pay for these courses if you can find low cost alternatives at your local library or resource center. Try reading up on real estate investment as well. You can use your library to your advantage to learn a lot about real estate investments.
Distressed Property Scams
Another scam that you will want to be aware of involves distressed real estate. There is a lot of money to be made in this type of investment, but there are also a lot of risks that you should be aware of. IF you are not educated about this, then you may bite off more than you can chew.
When you buy distressed properties, you will want to make sure that you work with an investor that has your best interest in mind.