The real estate industry itself is quite complicated and dealing things with great caution is highly essential. Whether it is about finding the right property or organizing the proper funding and managing a rental, everything is easier said than done and it goes without saying that all these processes take a lot of time, effort, and sometimes basic and in-depth knowledge about the real estate market is required together with other factors. Having said that, just like any business, even real estate industry is prone to scam activities where crooks try to scam you out of your hard work. Hence it is important to be wide-awake every time.
Change is the only thing that’s permanent and this applies to the real estate industry very well. Real estate changes constantly, so’s real estate investment scams. In order to not become a victim, you should be wide-awake and outsmart them because con artists these days are more sophisticated in scamming even the smartest people.
- Loan modification screams: This is one of the most prevalent scams out there and it often targets the homeowners and they struggle to pay mortgage or face foreclosure issues. In this con game, usually the scammer will act as the lender and will try to misguide the owner by their cheap tricks and try to deceive him/her. In addition, they may even promise a guarantee or protection from foreclosure, however, anything related to money the owner is supposed to pay a fee which is usually an upfront fee and this is a red flag which anyone should be aware of. These scammers are extremely cunning and will even have a website with a government logo, so be aware. So, whenever it comes to mortgage make sure that you don’t trust any third parties but deal only with a professional mortgage company.
- Rental scams: For rent signs open the door to rental scams! Landlords seek tenants, while scammers seek target in the name of rentals. Whether you are in the market to rent or looking to rent out your home, make sure that you DON’T get locked in the sights of a rental scam trickster who appears to be very loyal and legit. For an in-depth idea about rental scams read “Zack Childress reviews about red flags of Rental scams and how to avoid them”.
Everything you wanted to know about rental scams, its red flags, and how to avoid them are listed in detail there.
- Title scams: Title fraud or title scam is also one of the most common real estate investment scams. Highly destructive in nature, this could result in identity theft leading to several other issues. In this type of scam game, crooks will use false documents and pose as the home seller or the person authorized to do so, and recommends purchasing title insurance and may request personal or confidential information for the purchase.