Property investors are financially astute and generally prepared to make the best decisions about where to put their money for optimal growth that fits their goals. But, there are unsavory people in every walk of life just waiting to part you and your money. Avoid being a target by following three simple rules of smart investing that will safeguard your investment against fraud.
Get a Second Opinion
An independent advisor is the most important ally to have in your corner. A property investment opportunity requires that you perform due diligence to verify that the property is for sale and that the deal on the table is legitimate and viable in the current market. You know the old adage, “If something sounds too good to be true, it usually is.” Put it to work for you with real estate deals that sound too good to be true. Have a team in place – preferably a property management and investment advisory team – before you begin looking at properties, and certainly before you part with any of your money.
Do Your Homework
Investment groups and brokers should be very forthcoming with their success records and credentials. Research company background and contact information, and speak with actual investors who have had experience with the broker in question.
Don't Fold Under Pressure
High-pressure sales tactics have no place in responsible investing. Granted, buying properties can sometimes be a deadline-driven endeavor, but if the immediacy of the “deal of a lifetime” would prevent you completing your due diligence, walk away. It's better to miss out on the occasional deal than to jump into a scam unwittingly and lose your nest egg.