Beware Of The Rogue Traders,
Shits And Sharks!
There are a number of rogue traders back in the property investment community as the UK property market picks up pace again following the financial crisis that saw all but the most serious property investors continue to purchase properties.
The emergence of rogue traders and dodgy dealers is nothing new in property investment industry as scammers try to part willing investors with their savings by offering property deals that don’t stack up, costly property investment educational courses and worthless seminars and workshops designed to provide some cover for a high pressure pitch fest full of ill conceived propaganda designed to trigger reckless spending.
There are a number of controversial rogue traders who have been exposed in recent years, however the threat of legal action prevents me from naming and shaming the latest batch of scammers that have been brought to our attention at the present time, but rest assured these rogue traders will be exposed among the property investment community very soon!The latest batch of rogue traders are already well known in property investment circles, but their unscrupulous practices are not widely publicised due to the threat of legal action, however their devious notoriety isn’t going entirely unnoticed by commentators.
There are a number of ways that new and even some experienced property investors can avoid these scam artists, starting with conducting thorough due diligence on the person or company who have products and services that interest you.
In order to help new and existing property investors avoid becoming victims of these rogue traders, MyPropertyPowerTeam have compiled a few hints and tips to avoid the shits and sharks!
- Know Who You Are Dealing With – Check how long they have been trading, view available information online and ask to view previous years trading accounts, search online for blog posts, forum discussions, complaints, unhappy customers etc. This may take some time but it could save your hard earned cash in the long run.
- Do Your Sums Properly – Make sure that deals stack up and provide the returns advertised and required by you as an investor. If deals do not match your criteria leave them and walk away.
- Don’t Give In To Pressure Tactics – If you are not interested or the deal does not match your criteria, walk away, there is no obligation to buy anything so don’t be pressured into parting with money.
- Check Testimonials – Ask to speak to previously satisfied customers, check that they were happy with all aspects of the deals that they had done, if excuses are given for not contacting previous customers – BEWARE!
- Read The Small Print – Ensure that you are happy with all of the contractual agreements that you may be asked to sign. Many contracts contain clauses protecting the rogues that state that monies will not be returned if the deal falls through.
- Protect Funds – Ensure any monies are entrusted to a solicitor’s escrow account, if there is no safeguard in place there is always the possibility that it will be the last you will see of it.
- Do Thorough Due Diligence On Property Deals / Courses / Opportunities – Ensure that you know exactly what you are buying / signing up for, who currently owns the property / training company and check any covenants that may be attached to the property or course. Make sure you are happy with what you will get before parting with any money.
- If It Appears Too Good To Be True – It probably is! There are any number of unscrupulous practitioners out there ready to relieve you of funds at the earliest opportunity, often by making claims that appear fantastic (on the surface) but when proper due diligence is conducted the deals fall apart and don’t deliver the claims being made.
- Join Forces With Other Property Investors – Attend property networking events / property forums populated by like minded people, ask questions of people in the same situation and gauge opinions accordingly, if they have knowledge that you lack they may be able to warn you about a few potential pitfalls with your choices.
- Take Responsibility – Your personal development depends on doing business the right way, it is your money and you should only part with it if you are happy to do so, due diligence is your responsibility and there is no-one else to blame should things go pear shaped.
The responsibility is yours at the end of the day, stay positive, speak out and avoid becoming another victim of scammers, sharks and shits – They will get their come-uppance in time!
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