Property Investment Scams: I posted a video exposing the shocking story of Jack Wicks’ Social Housing Group, which recently stopped paying out investors.
In the video, I explain how the scheme seems to work and why I think investors are at huge risk. Jack Wicks claims to be the victim of another company, and says he is trying to put things right. Watch the full video, read the article, and make up your own mind! You can also see some clips from the video on my YouTube channel.
The whole incident got me thinking about how to help people avoid property investment scams. People can easily be fooled by slick presentations, particularly if they are new to the world of property and investment. So I thought it would be useful to write about some of the red flags to lookout for.
In this article, I will give you 3 signs that you could be dealing with a property investment scam. If you keep these red flags in mind when looking at property investment opportunities, you will be in a better position to protect yourself from scammers.
There are a lot of people who are vulnerable to property investment scams, and it is important that this information reaches them. Property investment scams are not only devastating for the people involved and their families, but also give the property community a bad name. Please will you help me to spread the word? Please share this article on your social media pages! You could help stop someone from getting conned!
Property Investment Scams: Sign #1 Unrealistic Rates Of Return, Without Risk!
If someone is offering you an amazing rate of return, but says there is no risk involved, this is a huge red flag! While it is possible to make amazing rates of return from property, this normally carries some risk and requires some work from you. If someone is offering you way above the industry standard for a passive investment opportunity, you should ask why.
If the investment is really risk-free, why can’t they secure the money for a lower rate? Take the time to understand if their reasons make sense, and speak to experts you can trust for their unbiased opinions. If you are dealing with large sums, always seek independent legal advice before signing anything or handing over money.
Property Investment Scams: Sign #2 Not Enough Information About What You Are Investing In!
If you are investing in something, you need to know all about it. You should be able to ask as many questions as you like, see proof and paperwork, and be able to have a solicitor check it all out. If your investment partner has an issue with this, this could be a big red flag!
Make sure that you can get the information you need to make an investment decision. If someone doesn’t want to be open and transparent with you, be willing to walk away. No matter how nice someone seems, rely on proof and facts, not your feelings!
Property Investment Scams: Sign #3 No Or Limited Security On Your Investment!
If you are investing a lot of money into property, you should expect some security on your investment. This could come in the form of a charge on the property, a charge on another property, or a personal guarantee.
In the case of personal guarantees, however, be extremely careful, as people often pretend to have much more money than they actually do. If they don’t have the money to pay you if something goes wrong, this makes the guarantee worthless!
When investing large sums, you should make sure you have adequate security. When investing in other people’s rent-to-rent deals, this may be harder as neither party own the property. In such cases, I would recommend only investing smaller amounts that you are willing to lose completely, and only with people you know and trust.
Getting Training Can Help Avoid Property Investment Scams
Getting property training can be a great way to arm yourself with the knowledge necessary to avoid property investment scams. Join me at my next £1 training event!
We have different courses throughout the year, each teaching different things. Here is a sample of what you could learn on one of our popular £1 courses:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
