Beware the property get rich quick schemes
A number of media outlets have been reporting an increase in real estate get rich quick schemes which seem to be tempting those looking for long-term financial stability. It is interesting to see the schemes making a comeback as the UK market goes from strength to strength, with UK base rate at rock bottom levels and indications that cheap finance will be available until after the next election. So, can you really trust these get rich quick schemes?
It would be wrong to suggest that all of these property seminars and property education courses are scams or frauds. There are many who offer an excellent service, very helpful strategies for the future and genuinely help people to build their own property portfolios. What about the rest?
Nothing ever comes easy
If you see buzz terms such as “get rich quickly” or “part-time property entrepreneur” then you should begin to hear alarm bells ringing. The real estate industry is competitive, cutthroat and there are many hurdles which even the most experienced of investors don’t always manage to overcome. We have seen some of the largest names in property fall by the wayside, bankrupt and penniless although many of them do return again to fight another day. However, the fact is this does show that you can have all the experience in the world but you are only one or two deals away from financial collapse.
Quote from PropertyForum.com: “So you think you can make money in real estate?“
If somebody told you that it was possible to create a string of retail outlets in your spare time, would you believe them? This begs the question, why do so many people believe these get rich quick scams and why are they prepared to pay thousands of pounds for something which seems too good to be true?
Experience takes time
The simple fact is there are no shortcuts to wealth, no shortcuts to building a quality property portfolio – it does take time. Those who are prepared, possibly on a part-time basis initially, to work all of the hours they can to increase their experience, slowly build up their portfolio and plan for the future, get everything they deserve. The fact is that we all make mistakes, no investor has a 100% success rate and the reality is that very often we learn most from our mistakes.
If there is one thing you should keep in mind when building a property portfolio it is not to overstretch yourself financially. Do your homework, speak to the experts and by all means speak to friends and family but remember, at the end of the day the decision is yours.
Will the regulators ever catch up with the fraudsters?
There are many investment sectors around the world which attract the attention of criminals and fraudsters and real estate/property is no different. This small minority often gives the larger industry a bad name and the fact that the regulators seem unable to keep track of their activities also adds to the problem. It seems that the fraudsters and the scammers are always one step ahead, very often they are legally astute and while insinuating potential returns they will often shy away from actually promising anything.
They have a way of enticing you in, making you feel special and then selling you an array of property investments which seem too good to be true. This is when you should stop and think about it, if it was so easy to make money with these investments why are they not investing themselves – rather than teaching others how to step on their toes? When you take a step back, think about it, nothing is easy in the world of investment and those who say otherwise should be avoided at all costs.