Having enough money and more opportunities, a person can afford to buy real estate, and at the same time make a profitable investment so that the property generates a steady income. Some wish to purchase property abroad, where they can enjoy the benefits of being a landlord.
Real Estate Fraud
While searching for real estate they would like to purchase, prospective investors visit various websites offering real estate for sale abroad. There is not always the opportunity to go and see it, according to the advertisement on the internet:
- they study photos;
- watch videos;
- contact a realtor to discuss its price;
- decide on the method of payment.
In reality, only a person who contacts a legitimate agency can become the owner of property abroad, rather than falling for scammers who easily gain trust and sell fake real estate.
Investment Abroad Scam
Having encountered a video online that talks about a profitable purchase of real estate abroad and offers to participate in investing in housing. In this case, scammers are actively working, offering to become a participant in a promotion when purchasing real estate, unfolding their scam. The investor must participate in the promotion immediately, a profitable deal is offered, and to not miss their chance, the decision must be made quickly and money transferred immediately. Scammers use pressure tactics on the victim using social engineering to prevent the victim from thinking and weighing the correctness of the decision.
Fake Realtors
There are fake realtors who spread false information about real estate sales, contacting the seller or can:
- sell non-existent real estate;
- sell properties with documentation issues.
Pretending to be a realtor, the fraudster demands payment for their services but does nothing, and may give the victim phone numbers of owners to contact them and negotiate independently. Scammers may also pretend to be realtors for property sellers, similarly demanding payment for services, promising to find a profitable buyer in a short time.
Foreign Real Estate Scam
Fraudsters are well-versed in real estate sales, especially foreign ones, and understand perfectly well that any property can be presented on sales sites, creating fake ads for the sale of foreign real estate.
Scammers may use artificial intelligence to create an ad, here:
- a building photo is generated;
- location;
- floor plans are created.
Using such ads, scammers can collect a guaranteed deposit from several buyers who are ready to purchase the property.
Fake Real Estate Offers
Scammers offer to buy real estate to subsequently generate profit. They guarantee to provide the best purchase option and then promise to find tenants. Those planning to invest in real estate do not always buy residential buildings. In some cases, investors prefer to purchase commercial real estate, which they plan to subsequently lease out for offices or shops to earn rental income. Scammers post fake offers for the sale of commercial real estate, which can be hostels or mini-hotels, where accommodation services are paid for.
Housing Purchase Scam
Dreaming of constant and substantial profit, real estate investors often fall for scammers who organize a scam when buying housing:
- they can sell someone else's housing, where the owners are unaware;
- they may visit the seller to persuade them to sell at a very profitable price;
- promise to resolve all issues with documentation and payment;
- may take on all obligations to formalize the deal;
- after receiving the necessary amount, scammers easily disappear with the money, without selling the housing.
Real Estate Investment Pyramids
Real estate investment pyramids can be called shared participation in the construction of future housing. Construction companies may approach future residents to invest in the construction process, but it is not guaranteed that upon completion of construction, the property will be entirely at their disposal. In the construction of apartment buildings or residential complexes, a project of future housing is provided, where scammers often become active, attracting investors and offering shared participation. They collect money for, supposedly, construction, often such projects are not implemented, and investors are left without money and new housing.
Fraudulent Real Estate Agencies
In the search for housing purchase, people turn to real estate agencies, often finding themselves dealing with fraudulent agencies.
Scammers create fake real estate ads or copy existing ones, passing them off as their own, changing contact details to ensure contact is with them, not with real sellers or agencies. In this situation, the buyer is deceived, being asked for a prepayment or partial deposit to confirm the deal.
