Scammers & Fraud (by GKARL [PA]) Jul 19, 2024 8:55 AM
Scammers & Fraud (by 6x6 [TN]) Jul 19, 2024 9:07 AM
Scammers & Fraud (by NE [PA]) Jul 19, 2024 9:09 AM
Scammers & Fraud (by zero [IN]) Jul 19, 2024 9:09 AM
Scammers & Fraud (by NE [PA]) Jul 19, 2024 9:14 AM
Scammers & Fraud (by Robin [WI]) Jul 19, 2024 9:54 AM
Scammers & Fraud (by 6x6 [TN]) Jul 19, 2024 10:30 AM
Scammers & Fraud (by Ken [NY]) Jul 19, 2024 10:52 AM
Scammers & Fraud (by Kevin [FL]) Jul 19, 2024 7:36 PM
Scammers & Fraud (by Robert,OntarioCanada [ON]) Jul 20, 2024 4:24 PM
Scammers & Fraud (by BRAD 20,000 [IN]) Jul 22, 2024 11:11 PM
Scammers & Fraud (by GKARL [PA]) Posted on: Jul 19, 2024 8:55 AM Message:
I attended a webinar yesterday sponsored by a Vera Jones-Cox and John Hyre on how to avoid getting scammed. There were a number of folks on the call who were victims often when wiring money or investing in deals. One situation was described where there was a guy at a local REIA who was engaging folks simply to determine who had money and thus could be a potential mark. It was eye opening.
I just think many of these scams will be uncovered as some deals start to unravel.
Generally, I'm careful when disclosing too many details when talking to friends and family. I don't talk about real estate to them unless asked and then I'm scant on details. I'll help if that's the intent of the question but getting into my personal business isn't allowed. I'm much freer with other real estate investors but this can be a problem when you don't know people's intent. These scammers use everything against you whether it's your ego, need for approval, your greed and etc. Depending on the circumstances, all of these can be weaknesses when it comes to scam artists. Of course, e-mail phishing doesn't rely on any of that but more on one's lack of attention to detail. They spoke of elaborate e-mail schemes where someone inserted themselves in a transaction to fraudulently get a wire. In this instance, the scammers had to be monitoring the e-mail conversation to even know what was going on. In my accounting practice, I use secure portals for this very reason. All title companies should be doing the same thing.
They talked about deed fraud also where someone fraudulently conveys a house that's generally free and clear. Some folks were talking about how they placed liens on their free and clear houses but it was unclear to me how one could do that unless you had an actual mortgage. The idea was that the lienholder has to be informed when there's a deed transfer.
One of the things I don't do is invest with other people. That alone eliminates a lot of potential scams and I think the latter is ripe for scams mainly because of the whole accredited investor thing. I think inflation has lowered the bar on that quite a bit anyway. Making more than 200K or having $ 1.0 million in net worth isn't unattainable today and is quite common. IMO, the pool of people that can be fleeced has been increased accordingly. I consider these folks to be upper middle class rather than wealthy and many of them are no more "sophisticated" than your average Joe. The chase for yield and clamoring for real estate have created the conditions ripe for scams, Ponzi schemes and overbuilt conditions in certain areas of the country. We're starting to read about the overbuilding but the scam stories are just starting.
Anyway, it was interesting and cautionary tales were told.
--209.122.xx.xxx |
Scammers & Fraud (by 6x6 [TN]) Posted on: Jul 19, 2024 9:07 AM Message:
Thanks for sharing.
Weren't things simpler back in time before the internet?
And before that? --76.129.xxx.xx |
Scammers & Fraud (by NE [PA]) Posted on: Jul 19, 2024 9:09 AM Message:
6x6, no. Man has robbed man since the dawn of time. --174.240.xxx.xxx |
Scammers & Fraud (by zero [IN]) Posted on: Jul 19, 2024 9:09 AM Message:
Thanks for that info. Very enlightening.
My county just started a deed fraud alert. I signed up for it so all my properties are on the list.
I had forgotten about it until I got an email saying that a deed had been changed. I had completed a sale on a place and the new owner took the quit claim in to the recorder's office.
All was good and it was protected, or at least I was informed.
I have also heard of people putting liens or helocs on places that are otherwise free and clear so they are not as rich of a target.
It is sad that all of this is happening in the world. I count myself as lucky to have not had to deal with any of the absurdity. --107.147.xx.xx |
Scammers & Fraud (by NE [PA]) Posted on: Jul 19, 2024 9:14 AM Message:
6x6, just think about how much effort is put into protect us from the other guy. Insurances, attorneys, deeds proving ownership, leases, surveys and fences, branding cattle, locks, cameras, guns, guards dogs, police, national military’s. On and on. --174.240.xxx.xxx |
Scammers & Fraud (by Robin [WI]) Posted on: Jul 19, 2024 9:54 AM Message:
I also attended the webinar. We were bilked out of a substantial amount of money several years ago, and changed our lending practices significantly as a result.
A couple of takeaways:
--ALWAYS send the money to the title company, never directly to the borrower.
--Do a background check on the person. Don't be afraid to ask questions.
--Con artists are very likeable. Don't use that as one of your lending criteria.
--Get your own eyes on the property. We had a borrower offer to secure a loan with a 3/2 free and clear property. I didn't trust the guy, so I drove by the property. It was a teeny tiny house in very poor shape that backed right onto the freeway. It couldn't have had more than two tiny bedrooms. When challenged, the borrower told us that there was a walk-out basement with another bedroom and bathroom. The house couldn't have been worth more than $15K, and he wanted to use it to secure a $85K loan. (Fwiw, he's still active in the RE arena in our area and churns through "partners" on a regular basis.)
--If you start to suspect that you're being scammed, act immediately. Demand that they fulfill the terms of the agreement. If you're nice, the scammer will see you as a vulnerable target. Hire a lawyer to send a demand letter ASAP. The scammers will give the first few people their money back because they don't want to be exposed.
--Scammers don't quit. If they're in your RE group, don't hide in shame if you get scammed. Suggest that other people check the court records on the guy. They're going to keep looking for prey. --104.230.xxx.xxx |
Scammers & Fraud (by 6x6 [TN]) Posted on: Jul 19, 2024 10:30 AM Message:
NE, yes, however back then they couldn't rob you electronically, finding them was easier and local (not over seas), and the solution was faster. --76.129.xxx.xx |
Scammers & Fraud (by Ken [NY]) Posted on: Jul 19, 2024 10:52 AM Message:
JohnHyre is a genius. One of my local counties sends a letter to sellers but they charge $10 so just a money grab as far as i am concerned.In my landlord group in the past we had a guy who would try to prey on anyone new or young, one of the tough guys in the group kicked him out and told him not to come back and we never saw him again.Gotta be careful of anyone you dont know.GKARL- some guys create a mortgage with a friend as the mortgage holder to create the illusion of a mortgage,easy to do just make sure you have a satisfaction of mortgage signed and ready to file --74.77.xx.xx |
Scammers & Fraud (by Kevin [FL]) Posted on: Jul 19, 2024 7:36 PM Message:
Got busy and missed the meeting, I have done several of John Hyre training and always lots of good information. --2.59.xxx.xxx |
Scammers & Fraud (by Robert,OntarioCanada [ON]) Posted on: Jul 20, 2024 4:24 PM Message:
Had a person call where offered high returns but asked if had brokers license where said no. Then asked where the money was going to invested then no answer. I set up cell Iphone to delect unknown phone numbers then went on the do not call list where so far do not receive calls from foreign offshore third world countries. A common trick is they send a cheque where they empty out bank account. If it sounds to good to be tree then is. Now things are more quiet. In the Us there also a do not call list where can land line and cell phone numbers. --216.110.xxx.xxx |
Scammers & Fraud (by BRAD 20,000 [IN]) Posted on: Jul 22, 2024 11:11 PM Message:
I have purchased several properties SUBJECT TO - the owner signs over the deed to me with out any notice to the mortgage holder. I pay the mortgage.
BRAD --73.103.xxx.xxx |
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