Greg's Corner

Real Estate Scams are still prevalent even offline

With the real estate market the way it is, it’s no surprise that there are people looking to take advantage of the housing crisis. While online real estate scams have been a thing prior to the economic collapse of 2008, they have definitely picked up steam since then. While we will be discussing an online scam that is currently ongoing, some other scammers have taken the old school approach of conning their victims in person.

Nashville, Tennessee is in the middle of an IT boom with many IT workers looking to relocate there. Because of this, scammers are running the ‘classic’ real estate scam online. The scammers are said to be copying legitimate real estate listings and posting them online as if they were renting the properties. This way they’ve been able to con victims into giving them down payments under the guise of holding the property for them. Unfortunately, it’s usually too late when victims find out they7’ve been taken with many left scrambling for a place to stay. The Tennessee State Government recommends checking with the Tennessee Real Estate Commission to make sure the real estate agent is who they say they are.

In Alabama, a con artist that is said to be known to police is accused of scamming a woman out of $24,000 while claiming to be a house flipper. House flipping is the act of buying a house that’s usually in a state of disrepair for cheap then fixing it up and selling it for a profit. The victim thought she was investing in just such a house. The scammer even asked the victim for additional funds for additional repairs. However, the scammer never actually purchased the property and no renovations were ever completed. If you’re entering into a real estate venture with someone, it’s recommended that you do your due diligence and research your partner before handing over any money.

Lastly for today, we go to Brooklyn, New York where a man was recently arrested for allegedly scamming people who were applying for housing through a government program. The scammer would promise prospective applicants that they would be moved to the top of the waiting list if they paid him $15,000. He reportedly then told his victims that an apartment would open up for them in six months to a year. In the meantime, the scammer would repeatedly ask his victims for more money to try to find other apartments for them. The scammer had no affiliation with the government nor the housing facility. When it comes to government-backed programs, the red tape can be excruciatingly long but unfortunately, there are no shortcuts.

While the desperate need for shelter can often override our better judgment, it’s always worth it to take a step back and research the situation before handing money over to anyone.