Some tips on real estate scams - Dc Fawcett

Introduction

With the boom in the real estate industry, real estate investments have been shooting up rapidly. With an increase in the real estate investments, scams too are occurring frequently. In this article, DC Fawcett gives guidelines on the various types of scams, how consumers can protect themselves from scams and the indicators of scams.

Types of scams

Property rented by people with no leasing rights

Those who don’t have leasing rights on their properties rent them to potential tenants. They then disappear with the first month’s rent, security deposit and sometimes even the prepaid rent.

Charging future tenants with money for background verification

Prospective tenants are asked to pay money for background checks. When hundreds and thousands of tenants pay this, a lot of deposit is accumulated by the scammer.

Copying legal advertisements and posting it with their own details

Scammers often copy legitimate advertisements and post it with their own contact information. They then make some excuses for not being able to show the property. The tenants are then convinced to pay without seeing the property beforehand. Once the scammer gets the money, he vanishes                      

Fake cheques

Scammers contact the property owners who have advertised their homes on the internet. They then transact rental prices and send cheques to the owners. The cheques are written in excess of the actual rental amount. The scammers demand a refund of the excess amount, saying that they will back out if they do not get the refund. So the owners pay the refund. But, the owners find out that the cheques are counterfeit when they deposit it in the bank.

The crime doer actually shows the buildings to the potential tenants.

In these scams, the scammers are actually show the buildings to the tenants. Tenants then move in only to be told by the bank that the property does not belong to the scammer.

Ways to avoid scams

People should be cautious of scams:

Potential tenants should verify the renter’s personal details like income, track record and others and follow up closely with the individual

People should never wire funds to strangers

People should check the security deposit amount in their state before paying.

People should check with the county recorder to know who owns the property that they are going to rent

They should check the authenticity of the property owner by calling the property manager.

People should ask the owner for an application. If they fail to produce one, it is a scam.

They should not receive checks with overpayment.

Conclusion

There are plenty of scams occurring in the realestate industry. For example: This complaint was received by the programming manager of a non-profit firm which had campaigned for loan modification. A fake company posing as a government-affiliated housing agency had cheated the unsuspecting homeowner out of $10,000 promising loan modification. After giving cash for phony “processing fees”, the victim was left five figures poorer with no mortgage relief in sight. So people should be careful about scams. The tips given by DC Fawcett will be of great help.

Common financial errors committed by people as reviewed by Dc Fawcett

 

Dc Fawcett is a person who provides real estate guidelines to people through his educational institution and internet blog.  In this article we will be reading about his analysis on some popular financial mistakes made by people.  

Spending irresponsibly 

Spending more than what is necessary gives us great momentary pleasure, but it can lead to an unsafe situation when we face an economic turndown.  Some of the areas where we tend to spend carelessly are:

Food:  When we live outside our homes we tend to frequent the restaurant since our hostel may not offer good food. In this way, we end up spending for costly restaurant food on top of paying for food at the hostel. So we could probably take up a room with our colleagues and cook good food for ourselves, install a coffee maker to avoid drinking coffee outside, keep a snack bag with us and so on.

Transport: We can cut down on transport by car pooling, using non-deluxe fuel and avoiding peak traffic hours.

Entertainment: Stick to less costly or even free entertainment 

Stop investing eternally

We can stop using items – cable connection, cell, internet and so on that make us pay continually, unless it’s necessary.  Some of these are addictive and will tempt you to invest endlessly. 

Use of credit cards traps us into a ring of debts

 Credit cards charge high interest rates and make items costlier than they actually are. Credit cards also push us to spend more than we earn. So we should be careful while using them. 

Purchasing a new car – Oh what a feeling!

We often take loans to buy cars as we cannot afford down cash. This means that we end up paying  more than the actual cost of this depreciating item and maintenance and repair of cars can also be very costly. But sometimes we cannot help buying a car. Hence we should go in for one that uses less fuel. We should also not buy an expensive car just to satisfy our whims. 

Home sweet home     

Suppose we buy a house covering an area of 6000 square foot  with a very small family, we would be incurring more taxes, repair and maintenance costs. This is a waste isn’t it? So we should be judicious and end up saving for the future. 

Refinancing your home

By mortgaging our home for a loan to replace another loan, we will be inviting high interest rates and payments.  We will end up paying more than what is required. 

Over spending

Over spending makes us reach a point where every penny becomes important and missing a single paycheck causes trouble.  We would never want to be in that situation would we? 

Conclusion

So let us spend within our means. To avoid being in the red we should keep an account of our daily expenses whether big or small. Then we should plan our monthly and yearly budget according to our expenses and salary and be aware of rental scams. This way we would have a bright future in terms of monetary reserves.

What is the Virtual Real Estate Investing Club? - DC Fawcett

Virtual Real Estate Investing Club was created by DC Fawcett for the purpose of helping average people escape the rat race and become financially free.

By using the strategies of the Virtual Real Estate Investing Club, you can start real estate investing part time and start cashing checks for $5,000-$10,000 with Zero Money Invested and without using your credit.

You can start immediately because there are no special licenses required to do this business. One of the best parts is we will show you how to find and flip deals in multiple markets without ever leaving your house.  This allows you to close deals simultaneously and generate $100,000 or more per month in pure profit.

It’s your choice whether your start virtual investing part time or full time. That depends on your current financial situation and your current cash flow needs. One of the most exciting times in a Virtual Real Estate Entrepreneurs evolution is quitting the 9-5 job and going full time. This is where you will Enjoy TRUE Financial Freedom.

Read also - Common financial errors committed by people as reviewed by Dc Fawcett