Real estate is a great place to make money. Unfortunately, not everyone in this business is trying to make money in a legitimate way. It’s important that you don’t fall for any scams when dealing with real estate. After all, you’re going to be dealing with huge sums of money, here!
Here are a few things you need to keep in mind.
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Don’t rush things – do your research
You know what they say about things that seem too good to be true. (If you don’t, they say that it probably is too good to be true.) Whether you’re a buyer or a seller, you need to take your time and think about each deal. Vet the seller or the buyer. Make sure they’re legitimate.
The stolen home
Let’s give you an extreme example of a real estate scam. This one is aimed at buyers. Basically, someone will research a vacation home, or a home that’s unoccupied for the time being. They will then put out a listing for the home, for rent or for sale. They’ll make a quick deal out of it, get the money, and give you the key. Of course, the actual owners return and you find yourself in trouble. This is the stolen home trick. It’s one of the top reasons you should be wary of quick deals.
There are a lot of companies out there willing to give you cash for houses. This can work out really well if you need to make a quick sale. But you have to make sure you’re not being played for a fool. Find out as much as you can about their business. Check their website and ensure they have a good history of successful sales.
Get legal assistance
If you have the money, you can look into hiring an attorney to help you out during this process. They can help you make sure you’re legal protected. They can review the involved businesses, the contracts, and any other legalities. Speaking of contracts…
Make sure you get it in writing!
It is actually possible for what is called an “oral contract” to be legally binding. This area is a little complex, and depends on a bunch of state-specific laws, but it’s there. You still shouldn’t rely on it, however. If you want to make sure you’re fully protected, make sure you get all those agreements in writing. And make sure you review those contracts extremely well. I mean read every word at least twice. These contracts can help you tremendously.
The will to walk away
No matter how far along in the process you are, you should be willing to walk away if things look a bit sketchy. If you don’t feel comfortable with the deal, or you have any doubts, then don’t let the deal go any further. Don’t worry about how grumpy the other party might get about it. If you don’t walk away from a deal now, and it does turn out to have been a scam? Then you’re going to be in for quite a financial and legal headache.