An REI news watch recently featured a news real estate investors should be afraid of – swindlers! The 50-year-old woman allegedly tried to dupe a Spanish-speaking couple into paying $80,000 as “down payment” for a Modesto home. The report stated that the suspect pretended to be a real estate agent and had shown several properties to the couple. Suspecting something amiss, they talked to the authorities and discovered the alleged crime.
The thing is, the event happened in California’s Stanislaus County, where the risk of mortgage fraud is believed to be greater than anywhere in the whole country! This news should serve as a heads-up for real estate investors, lenders, agents, home buyers, and anyone who is involved in real estate investing. Whether in California or any other state in the U.S., the possibility of being swindled is always there. While this specific case showed that the home buyers were the alleged victims, investors and lenders could also fall for these scams.
So, the moral of the story? Build trust but get to know people well before trusting them. It does not matter if that lender or real estate agent was referred by a friend. It does not matter if the investor has a website. Always do a little background check on people you work with just so you know if they are worth your trust. Just be careful not to cross the line and invade their privacy. That’s a different matter altogether.
Again real estate investors, beware and be vigilant. You can never tell where or when a swindler will strike anew.
