Real estate investment scams are one of the major scourges that most of us have to contend with when considering this capital intensive business venture.
You may figuratively lose your shirt if you fall for the machinations of these shady operators in real estate markets.
This makes the condition doubly difficult for most investors considering the current state of most real estate markets.
Still, the high earning potential of properties is enough reason to get your financial juices going.
However, you have to be conscious of the fact the fraudulent operators are also not far behind, and this is the main reason why you need to "configure your radar" so that you can avoid these real estate investment scams.
There are ways that you can protect your investment.
In fact, a significant number of these measures are plain and simple common sense and very basic.
Chances are you are already aware of most of these measures but may fail to consider them when the transaction becomes exciting or extremely interesting.
Let us take a closer look at these measures, and learn how they can help you avoid scams in investment.
1.
Don't fail to put every detail of the transaction in writing.
Proper documentation of the transaction is your most important weapon against possible fraud or scam.
Don't make any assumptions on anything related to the transaction unless it is put into writing.
This is particularly important for any accommodations and modifications associated with the agreement.
2.
Don't hesitate to ask question.
It is important that you cover all the aspects of the investment opportunity.
Don't make any assumptions, even for the most basic or obvious ones.
Make sure that you have a list of things to ask and discuss before you proceed with the transaction.
A reputable seller and reliable real estate agent are more than willing to discuss the details of the transaction and clarify even the issues that you may consider inconsequential.
If, for any reason, you are not getting enough information about the transaction, then the most viable thing to do is to discontinue with the transaction.
3.
Seek the service and advice of a professional.
This means that you need to deal with lawyers who have the legal expertise in handling real estate transactions.
You need a real estate lawyer who can check any property contract that you need to sign to ensure that everything is in order.
If you are really serious in getting into investing, then you may have to consider joining clubs in the area where you want to operate.
This will allow you the opportunity to "rub elbows" with the experts in real estate business.
These are the players in real estate markets who can share with you their best practices and insights in regard to important aspects of real estate investments.
You can also gain access to inside information regarding potential scams and frauds that you have to be aware of.
4.
Subject every detail of the transaction to a thorough inspection and study them.
Revisit every aspect of the purchase, and make sure that everyone you are dealing with in regard to the real estate investment is legit.
Don't hesitate to ask for their credentials and background.
Check out latest reports with the BBB and latest online reviews.
5.
Carefully assess the real value of the property.
Whether you are on the selling or buying end of the negotiation table, it is essential that you have accurate information on the real value of the property for sale.