Investment Scams

The Northwest Multiple Listing Service has posted warnings about two recent scams making the rounds in the Puget Sound:

WARNING ~ Lease Purchase Scam
September 17, 2010. NWMLS has received information from multiple brokers about a potential lease purchase scam. The scam artists have contacted property owners and brokers in an effort to view and lease high end property. After a lease purchase agreement has been executed, the scammers ask that you hold their first and last month deposit until after they move in. After the scammers move into the property, their rent check bounces, and the seller is forced to go through the eviction process to remove the scammers from the property. The eviction process is time consuming and expensive. Please be cautious when dealing with similar situations and be wary of suspicious people.

Potential Scam Reported from Fraudulent All Cash Buyers
July 23, 2010. NWMLS has received a number of complaints from Brokers about buyers claiming to have the funds to purchase properties for cash, and at closing there are no funds. Brokers reporting the incidents are not sure what the gain for the potential buyer is, however, Brokers who have gone through the entire inspection and purchase process, have wasted valuable time and resources. Please be sure to use caution and remember to verify funds when completing all cash transactions.

In both cases, requesting to see proof of funds would help alleviate problems such as these perpetrated by scammers. As always, when screening tenants for any kind of lease, the owner should be sure to do a background, criminal, employment and rental history check.

These kinds of scams give legitimate investors a bad name. Be forewarned, and know with whom you are doing business! Trust, but verify all information.