Real Estate Investing Scams — 10 Tips To Safeguard Your Money In Partnerships

Roi's List
Sep 2, 2018 · 5 min read

Real estate partnerships- have you ever been involved in one? They can be a good vehicle in certain situations but they can ruin you too if you fall for a real estate investing scam. Take these tips and use them and hold on to your money.

Successful real estate investors protect themselves from potential scams. Just because someone speaks in the language of real estate does not mean he or she has good intentions with your money. When I first started investing I had two men approach me about partnering in some real estate deals. They showed me comps with all of the sales data, estimated repairs etc. and because they painted such a great picture and seemed to be very knowledgeable about real estate I fell in the trap that cost me over $30,000 US Dollars. You don’t have to make the same mistakes. Now you can follow 10 simple steps that will limit your risks while you invest.

1. Take counsel from a professional investor group.

In the wild the animals that survive are the ones that stick together. We should apply that same principle. But make sure that the investor group is honest and willing to give counsel when ever you feel something seems questionable or too good to be true. You want to look for a network that does not just sell you deals, they should be investing in the deals with you. Now that is putting your money where your mouth is.

The best way to do this is to join Roi’s List Investors Network. With an app for Android and iOS networking with real estate professionals has never been easier. Roi’s List Web Platform in BETA also has a huge database of users. Over 5000 real estate professionals across America. It is an investor group that has a feel of a social media platform. Making things easier for all of us!

Closing deals has never been this simple!

Struggling to meet the right people to advance your real estate business?

With Roi’s List you can complete a deal in 3 easy steps:

1. Tell others what you’re looking for

Fill in your profile and tell people who your target audience is and what types of deals are you interested in.

2. Find investors based on your profile

Find the people who are really interested in a deal. We save you the hassle of trying to reach out to random investors and slowly building your network. Roi’s List is an instant black book for investors to do deals with whenever you need one.

3. Make a deal

With Roi’s List, it is easy to message anyone who is interested in making a deal. We fast-tracked the networking process so you don’t waste your time searching for potential investors. Make a deal with someone looking for exactly what you’ve got to offer.

Get the iOSapp here. Android Here.

2. Know your partners.

Never partner without knowing your partner. If you are considering partnering with a person that appears to be a pro make sure to have your attorney look him up to make sure he is clean. Your success will always be influenced by the people you surround your self with. If the people you partner with are successful and trustworthy you will grow. If your partners are scam artists you will be perceived to be just like one of them.

3. Have an attorney on you power team.

Make sure your own attorney represents you in every partnership and property investment. Having legal paperwork done right will keep you out of trouble and protect your interests if you need to go to court. Trust me when I say that the cost of working with an attorney is far cheaper than an ugly lawsuit because you did not do things according to the law.

4. Secure your money.

Keep any deposits for an investment in an escrow agent account until you move forward with the project because you will be able to retrieve your money if things go south.

5. Do your own due diligence

Obtain comparable sales and market research from your own sources when you are not sure the areas value. Drive by if necessary. This would also be a good time to speak with your mentors regarding the project you are considering. If your numbers work then take action.

6. Be insured at all times.

When investing in real estate title insurance is meant to protect you from any surprises. When purchasing apartments or any commercial property also ensure that you have umbrella coverage. Trust me when I say that you only need one deal to go south to pay for two lifetimes of insurance policies.

7. Use the right contingencies.

When investing, you should incorporate contingencies to protect yourself. This is when that attorney can work wonders. Give yourself plenty of room to walk from the deal if something goes wrong. The last thing you want is to get stuck with a deal that will ruin you and you can’t get out of that agreement. Addendums are your friend!

8. Use money sources you can trust.

You can build these relationships before you start investing. The key is making sure that they have a strong reputation by others. Ask for referrals and when you find the one that you can trust use them regularly. You can also ask your mentors and they can referee you to the people they do business with.

9. Stay in control of your investments.

Successful investors are not afraid to stand up for their interest when things seem to shift. A balanced portfolio strategy will make it easier for you to spot when something does not fit your plan. Your contract addendums will help tremendously. No one, even a “partner” should control YOUR investments.

10. Keep relationships alive.

When you pull off an investment with someone that was trustworthy continue doing business with them. Make sure to preserve those productive relationships. You don’t know how important it is to have a strong team in the market place until you are standing all alone when you fall in a trap.

Expand your network

Whether you are just starting out and trying to build a large network, or you are a pro who is looking to have more deals brought to you at your convenience. Roi’s List is an app for you!

Real Estate Investors Networking — Roi’s List

We created Roi’s List out of a need that we ourselves faced as investors. REIA meetings are great places to meet like-minded individuals to potentially do business with, however going to meetings can be time-consuming and, depending on your location, expensive to travel.

Roi's List

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We created Roi’s List out of a need that we ourselves faced as investors. REIA meetings are great places to meet like-minded individuals for business.

Real Estate Investors Networking — Roi’s List

We created Roi’s List out of a need that we ourselves faced as investors. REIA meetings are great places to meet like-minded individuals to potentially do business with, however going to meetings can be time-consuming and, depending on your location, expensive to travel.

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