Investing in real estate without getting scammed.

The IBJ(Indianapolis Business journal) has a good article about Charter Homes which was recruiting “straw” buyers. The 3-year-old local company took advantage of eager real estate investors by offering them a cash bounty for each home purchased, along with checks from Charter to cover down payments. But as lax credit markets tightened and home values reversed course, the scheme began to crumble, an IBJ investigation has found.

The use of “straw” buyers—individuals who lend their credit, often to unnamed shadow buyers—is considered illegal. During the housing bubble, frauds involving such buyers were widespread, particularly in Nevada, Arizona and Florida, said Curtis Novy, an expert on mortgage fraud and a veteran California mortgage broker.

Ultimately, it takes a team to pull off such a scheme, including a builder, appraiser and straw buyers, Novy said.

A warning sign is high sales prices that don’t make sense to people who know a market.

PROTECT YOURSELF:

If you want to invest in properties, but dont want the hassle of dealing with them. Then make sure you are going in with your eyes wide open. Get your own comps on what a property is worth(fixed up and or needing repairs). Get your own comps on what the repairs are going to cost. Get your own comps on what property management is going to cost. Use your own banks and or appraisors. Most Importantly: If you don’t understand something, either ask more questions until you do understand it, or walk away and invest elsewhere!

My company offers investing for people who don’t want the hassles. I don’t give inflated values, or am not in cahoots with appraisors or lenders. We offer real estate investing without all the hassles, or with all the hassles if you want to go that route. If you are interested, then give me a call and we can talk about your options.. Lee Smith, 317–450–3491