Real Estate Investors Beware

I thought I'd share this with you all. It's a fairly old article (1 year), but the information it has is still helpful and will remind you to Keep your Guard up when doing deals out there. After you read the Article, you'll see a way that you can Reduce The Risk below. Be Careful and continue to be successful in your Real Estate Biz!

Here's that article I ran across:

Anyone online today probably receives a regular stream of investment scam e-mails. You've seen them: the wife of a Nigerian minister seeking to get millions of U.S. dollars out of the country, or the Zimbabwean land crisis, offering substantial commission fees for "honest assistance" to help transfer money. And, the ever-popular opportunity to help a foreigner invest in the "stable economy of your country." You might wonder who responds to these scams, and the answer is that many do, otherwise they wouldn't continue to exist. In 2003, the Internet Crime Complaint Center received 124,509 complaints, of which more than 63,000 were related to fraud and represented a loss of US$125.6 million. As real estate professionals, you may be a greater target, given your work with investors and entrepreneurial business opportunities.

Financial investment scams can also be much closer to home. Perhaps you've been asked to invest in a real estate deal by a colleague or friend. It might be presented as a once-in-a-lifetime opportunity, or simply a personal favor—someone needs your help and, in doing so, you too will benefit financially. Such opportunities can be legitimate as determined by a thorough investigation of the opportunity. But the risk of responding to personal pleas for assistance is that when you know or trust someone, you may not be as diligent in your research. Quite simply, your radar for a scam is probably turned off.

The CIPS Network is a great business tool and resource for its members, but like any group, it can be misused when an individual in appropriately uses personal contacts. To protect your financial interests, the following tips are provided to help you assess investment opportunities. These tips are provided by the US Securities and Exchange Commission.



With any investment, whether promoted in person, by mail, telephone, or on the Internet, a wise investor should always ask questions, and get written information. Take notes so you have a record of what you were told, in case you have a dispute later.
Is the investment registered with the SEC and the state securities agency in the state where I live or is it subject to an exemption?
Is the person recommending this investment registered with my state securities agency? Is there a record of any complaints about this person?
How does this investment match my investment objectives?
Where is the company incorporated?
Will they send me the latest reports that have been filed on this company?
What are the costs to buy, hold, and sell this investment? How easily can I sell?
Who is managing the investment? What experience do they have?
What is the risk that I could lose the money I invest?
What return can I expect on my money? When?
How long has the company been in business? Are they making money, and if so, how? What is their product or service? What other companies are in this business?
How can I get more information about this investment, such as audited financial statements?

Sound like good, logical advice? Of course it does. But when you're talking to someone you know and respect, you may feel awkward posing these questions. Investment opportunities from friends and acquaintances should be approached exactly the same as if you were approached by a stranger. If you want to learn more about fraud and how you can prevent it, there are dozens of web sites to help you. Search on "Internet fraud" in your browser.

If you believe you have been a victim of fraud, your options for reporting it will depend on the country in which you live. In the U.S., you may report fraud to the FBI, the National Fraud Information Center, or other government and non-profit organizations, depending on the type of fraud. Check with your local law enforcement agency for specific guidance.

by Carol S. Weinrichb
------------------------------------------------------------------------------------------------

So, How Can you Reduce the Risk?

Send me an email and I'll personally let you know...

Think your not at Risk? Think again!


Do you hand your credit card to servers at restaurants?
Do you sign your credit card?
Do you supply personal information over the internet?
Do you leave mail at your home or business for the postal carrier to collect?
Do you shred unwanted mail containing personal information?
If you said yes to at least one of the above, then you should definitely do something to reduce the risk. If you said no to everything above, then good for you, your practicing some good steps to reduce your risk, but what about all the other questions that weren't even asked. Think about it and Reduce the Risk Now!

by J.Lamar