| Con artists and mobsters make sure their co-workers | | | | The next thing you need to do is to find out about all |
| are vetted; you should too. In the case of Bulk REO | | | | the properties in the deal. All it takes is one property to |
| deals, it pays to know who and what you're dealing | | | | sour things. One of the scams out there is this: A |
| with. You're entering a high stakes game and it's tough | | | | scammer finds out what properties are vacant and in |
| to know if buyers and sellers are legitimate; you may | | | | foreclosure, and then rents them out for cash. By the |
| be strung along for a time during the onset of a deal, | | | | time you come along to see the property, someone is |
| or things might look perfect right up until you see the | | | | living there. The tenant will probably not take too kindly |
| contract. I'm of the opinion that paperwork for a | | | | to being told that they have been the victim of a scam |
| large-scale project like this need to be seen by a | | | | and that they will have to leave. Use common sense |
| lawyer. | | | | when visiting these properties - think of it like being a |
| As a timeline, there are a number of things to navigate. | | | | bail-bondsman for a day. |
| First and foremost, find out about the person you are | | | | Other real estate scams abound: Lending, Short Sale |
| dealing with, and let them find out about you. Ideally this | | | | and Bait + Switch Contracts to name a few. You can |
| is someone you would trust to pack your parachute | | | | find a lot of great advice out there one these different |
| before you skydive. They should be comfortable | | | | scams, but as an over-arching piece of advice I live by |
| enough with you that they would let you do the same. | | | | one rule, "Don't do anything stupid". The only addendum |
| If you're at the point where you're considering a bulk | | | | to the rule is that if you think you might be about to do |
| REO deal, you probably already have some internal | | | | something on the stupid side, you have to ask a |
| radar that can identify a scam. However, the con | | | | trusted confidant what they think; in this case your |
| artists are really good at their jobs too, so never | | | | lawyer. I know lawyers get a bad rap, but when it |
| assume. There are probably some Bernie Madoff | | | | comes to avoiding a bulk REO scam, they will earn |
| types out there right now. | | | | their keep. |