Wallingford, CT (PressExposure) August 08, 2008 -- As Americans try to ward off foreclosures, Connecticut Better Business Bureau says beware of real estate investment scams.
The tricks range from convincing consumers to sell their properties for pennies on the dollar or trying to talk them into paying for real estate selling courses.
These individuals prey on distraught homeowners by promising to solve all of their financial problems. According to Connecticut BBB President Paulette Hotton, some even stoop lower.
âSome of these scammers try to con people into buying property that will make themselves rich, and leave homeowners worse off than they already were.â
Their questionable practices include bombarding would-be victims with unsolicited e-mails, free investment seminar tickets and using infomercials to lure investors to courses touted as âsecretsâ to real estate-based wealth.
Honest investors, unlike scam artists, do not seek business through unsolicited contact such as mail, e-mail and telephone. If you are looking for an investor to buy your property, ask for referrals and do careful research on the Internet.
Connecticut BBB says there are other ways to spot real estate investment fraud:
â¢ Protect yourself from expensive investment courses claiming to reveal "insidersâ secrets." These show you how to buy a home with no money down, however the era of zero down payment has passed, and outdated investment courses will simply put you further into debt.
â¢ One of the best-known and most pervasive real estate investment schemes involves the promise of great wealth by paying several hundred dollars to learn how to purchase foreclosed properties at half their market value.
Similar scams lure would-be investors by promising to deliver lists of hundreds of foreclosed properties.
This information may be obtained for free by visiting your local county records office.
Nearly everything you would want to know about real estate investment, purchase of foreclosed properties and how to fend off foreclosure is available free on the Internet.
Thousands of websites and articles are on the Worldwide Web, written by professional real estate investors who share their experience to help educate consumers.
Before buying or selling property through a real estate investor, visit http://www.bbb.org, type in the investorâs name and verify if any complaints have been filed against the individual or company.