Property scams have been going on for generations. Whenever there is a rise is housing prices, scam artists come out of the woodwork to take advantage of people. We don't want you to become the victim of a scam. Heck, that's why PropertyRecord.com was launched in the first place!
This is why we pay attention to new real estate scams and keep you informed - so you can make sure you don't become a scam victim. Recently we've heard of a new scam that has gotten a ton of people ripped off, and wanted to warn you about it.
This scam tries to convince you to buy into a bundle of real estate in order to make a high return on your investment. They tell you that the real estate has been bundled together as a new type of security, and that as the value of the combined properties grows, you will be able to get dividends from them.
The scam artists claim that with rising housing prices, you can make as much as 30 percent interest on your investment. Of course, this is always a scam. Real estate is never bundled as an investment. And beyond that, no investment can promise such a high rate of return.
What it is, is the old Ponzi scheme scam. There is no real estate at all. In fact, old investors are simply paid off by the proceeds of new investors. Of course, eventually the scam artist will run out of new investors. That's when the scam falls apart, and nobody but the scam artist makes any money on the deal.
So if someone tries to get you to buy in a bundle of real estate as an investment, know that it is a scam and walk as far away from the deal as you can.
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