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Why People Are Prone To Real Estate Investment Scams
In the past couple of years there has been a HUGE rise in the amount of people operating real estate investment scams. And some of them are so protected by the law that we can even call them legal scams. Scams have always been a popular thing, but it seems as though the economic crisis has caused all of these con artists to come out of the woodwork. The problem is that a lot of people are falling for them too. These are people who would never imagine that they would one day become a victim.
Property investment scam techniques vary wildly. Perhaps the most common is to encourage you to invest in a property with the promise of HUGE returns on your investment if you give them your money. There are also a couple of other scams out there which ask you for thousands of dollars to participate in a course to learn the ins and outs of real estate investment. Again, there is the promise of big returns if this happens. After all, these are the experts. I want to focus on the former for the purposes of this page.
The even more disturbing part is that there seems to always be a strategy for these unethical activities. There would usually be a low cost entry fee to weed out the freebie seekers. The initial low cost investment will then payout nicely to earn the trust and confidence of the victims. This sets them up for a bigger “opportunity” requiring a bigger sum of money. Once you put your money into it, it is when things start to go wrong.
Perhaps the main reason as to why people fall so readily for property investment scams is the fact that they are often very professional in nature. These are not the type of scams where you will get an email or a knock on the door asking you to spend thousands of pounds on a new shopping mall that is going up or something. Oh no. These scams often have a very intricate professional plan behind them. Many scam artists operate seminars. They lure people in to these seminars, give them as spiel about property investment, hit them with their offer, and they suddenly have tons of interest. Nobody could EVER think something like this is a scam because these are not traditional scammers, or what most of us would perceive to be traditional scammers at least.
The come in neatly pressed designer suits, talk in an accent that is flawless while speaking with a great amount of flair. The amount of documentation they use to showcase their testimonials is 10 times the size of the investment information itself. Sometimes, you might find that the actual “investment” takes up just 1 page or slide.
On top of this, those that operate the scam tend to be VERY convincing in what they do. They craft sale pitches centered around storytelling for maximum dramatic effect. This can work so well that they could actually sell ice to the eskimos if they wanted to do so. They don’t actually need the smart talk though. If you are faced with a group of people who have pretty much made it their life goal to ensure that they get as much money as possible then you are obviously going to get a few bites if you claim that they can make massive returns.
Finally, there also seems to be a few pressure tactics associated with this. Perhaps the most common is taking you to see the property. This may even involve a flight to another country. Once you get there you can’t help but want to invest. After all, these people have shown you a ton of kindness. It obviously means that they are really interested in seeing this product through to completion. The reality? The only thing they want to see is your wallet opening all the way through to completion.
Remember to always to your due diligence especially for overseas investments. You can never be sure if something is legitimate until you find out for yourself. Conmen will not let it slip. It is not a scam otherwise.