Protect Yourself from Real Estate Fraud

Being your investor, you must protect yourself from potential scams. Everyone is not to be trusted. Just because they hold a professional license doesn't mean they are honest. What do you do when you don't have the resources to protect yourself? Here is some valuable advice that you can use whenever you do a real estate transaction.

Join a local real estate investment group. They should have resources where you can ask for advice if something seems fishy or too good to be true.

Always ask for identification. When you deal with a seller that you don't know and the home is vacant, then ask for id. Some scammers pretend to own vacant houses and trade deeds for money.

Always place your deposit in your closing agents escrow account. If the deal goes bad, you don't have to chase your money.

Let your attorney review all deals. Make sure your closing agent and lawyer represent you in every transaction.

Check city liens. Always visit the governmental agencies to find out about pending liens that may not show up in the title search. This can save you thousands.

Get title insurance. If your name goes into the chain of title, then purchase the insurance.

Run your own comps and drive by the comps given you. Get the comparable sales reports from your own sources. Drive by and make sure your making a wise investment.

Stay in control of your deal. Don't be intimidated by your seller. Protect yourself and stand up for your rights in the contract.

Use your own mortgage brokers or money sources. Don't be pushed into a money source that you are not familiar with. Rushing into financing could be costly.

Contingencies can protect. If you don't feel right about the deal then be sure to use a contingency in the contract. It binds the seller but gives the buyer the right to cancel within a certain period of time.

Practice these tips each time you do a deal and you won't have to learn the hard way.

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