As a real estate investment advisor in Reno, I have seen my fair share of scams in real estate. It is unfortunate, even during these hard economic times that people are still trying to take advantage of those who are trying their best to build a good life. It is important as an investor to be aware of various scams because it can have an impact on your bottom line.
The foreclosure segment of the market is one area where scamming is very common. There are those who portray themselves as “experts” who can help homeowners get out of foreclosures but for a big price. Other scammers convince struggling homeowners to sell their home to them with the promise of selling it back to them later. The homeowners act as renters during that time. However, when homeowners finally are able to buy back their home, the scammer is unwilling to sell the home back to them. These two are the most common scams that I see as a real estate investment advisor in Reno.
Another scam has come to the forefront because of the high foreclosure rates. The scam is to put people in as renters on a home that will be foreclosed on. The landlord knows the home is going to be foreclosed on and pockets the rent without paying any of the mortgage payments. It often comes as a surprise to the renters when they are evicted without notice.
“Cash for keys” is commonly used to prevent renters from damaging the property before moving out. The occupiers are given money to move out by a certain time and leave the property in good condition. However, many times “cash for keys” is not always the best solution. Lenders, agents, brokers and investors need to be aware that there are laws that protect renters of foreclosed properties. Both renters and others alike need to be aware of these laws.
As a real estate investment advisor in Reno, I believe it is important for everyone to be aware the different scams and laws. Each has an effect on the housing market and ultimately your investment.
Your Savvy Real Estate Investment Advisor,
Greg Hughes
Serving the Greater Reno, Sparks, Carson City, Fallon, Fernley & Elko real estate markets
