Real Estate Fraud

This is an activity that is purposely done to misrepresent information on real estate documents. It also involves the money transfers. It is also called mortgage fraud. The reason that it is referred to as this is that the fraud generally takes place with the mortgage application. Real estate fraud, in the United States, can have heavy penalties like imprisonment and large fines.

Such a crime can be committed in many different ways. It appears to happen more often when property prices are on the rise. Because of the simplicity of the fraud, some types are seen more than other frauds. Some are not as common because they are more complicated. One of the common forms of such fraud, according to the IRS is preparing two settlement statement sets that are different from each other. In one of the statements, the accurate property-selling price is written, which the buyer receives. The other one will depict a higher selling price that is exaggerated. When the mortgage lender approves the loan for the exaggerated price, the seller is given the amount that is stated in their copy of the settlement statement. The one who committed the fraudulent settlement statements will keep the money that is left over. If there are other conspirators, the money will be divided among them. It could be the entire excess money or a percentage of it.

Using qualification that are fraudulent is another type of real estate fraud. These fraudulent qualifications are used when applying for a mortgage or home loan to help them get the mortgage. In this form of real estate fraud, the real estate agent will usually assist the buyer. The fraudulent qualifications can include fabricating credit reports or history of employment. These two involve the obvious misrepresentation of data but not all real estate fraud is easy to see as these two examples. If buyers who do not intend to commit real estate fraud because they do not know the laws can accidentally commit mortgage fraud.

If a buyer has a down payment by using money that was given as a gift it is legal. If this gift is re-paid to the who gave the gift, this is considered a case of real estate fraud. The gift used to make a down payment cannot be repaid for it to be legal. Another type of property fraud is when the buyer accidentally fails to disclose any financial liabilities on their mortgage application. It becomes fraud when it is not taken care of before the loan is approved. Property flipping can become real estate fraud if you make false representations about the value and condition of the property when you sell it for a much higher price than you paid for the property.

Real Estate: What You Need To Know

People generally get confused with the term real state and real estate Business. Real estate itself is not related to business as it represents a property of land and building that too, including the natural sources, such as flora, fauna, crops, parks, pools etc. that are immovable and lies in the property’s premises. Whereas real estate business is the profession of selling, buying or renting these properties.

Real Estate Agents

It’s a tough task to match the needs of buyer and property sellers, as buyer may not get his dream property and at the same time the seller also may not get the price of his wish. To establish a good connection between buyer and seller and to find the right buyer for a seller and vice versa, Real Estate Agents can be hired that are easily available in the market. Real estate brokers or agents are the ones, who acts as an intermediate between property buyer and seller and tries his level best to match their demands. Buyers for buying and property owner for renting or selling their property get in contact with the agent. The agent listens to their demands and try hard to fulfill them, for a property sold or rented in his supervision, the agent charges some percent of the price of that property from both the parties, i.e. the owner and the buyer. Agents use websites to promote the sale of properties, often work at nights and weekends busy in showing properties to buyers.

Things you should know about Real Estate Agents

Although agents are such a bliss to those who are struggling to get a property or a price of their interest, but we have to be wise when it comes to choosing an agent. Agents are not bound to show you best properties or tell you all the things they know, they might get greedy sometime and show you properties that are going to profit them more than you. On the other hand, for property owners they might end up, leaving you with paying guest that can trouble you in future, in fact, as the general goal of an agent is to sell the property as soon as possible, they may excite you and ask you to sell your property at comparatively lower prices than that you expected, and would be getting after some days. It’s better recommended to choose your agent and the other party to buy or sell wisely, after taking your time, and not to get excited on every other offer you get.

New Real Estate Business Mediums in market

Now-a-days many online sites and applications have been developed to remove the work of agents. Both the parties contact with each other directly and choose the deals of their interest. Though, this move has increased the transparency between both the parties, but because of being fully online, may result in misleading each other. That’s why it is highly recommended to see the property in person before booking it. As the thing that seems to be good and satisfying online can be completely opposite from that what you will be getting in real.

Big Money Mindset

“It is just another zero… ” I laugh. “What?” He asks. “Wait… your serious?” I reply. “Hell yes I am serious!! Are you afraid of a zero?” I could not respond.

He got me. I guess I was afraid of a zero. Big profits scared me. Was it the risk of the deal or the fact that I did not believe I could earn that kind of money? Up to that point I was doing deals making $10,000 to $20,000, which was decent money, but nowhere near my potential. I remember the first year I saw 6 figures on my tax return. I was very proud of that year. Now I wonder how I was able to live on that income. What changed? My mindset.

A few weeks ago a friend of mine and I went to a commercial real estate investing conference. I was blown away by the quality of the attendees. People at this conference are not seminar junkies. These people implement what they learn and take chances. I was hearing stories about profits on single deals of 2, 3 and 4 million dollars. Many people I spoke with started in the fix and flip business, but none of them were willing to look at a small deal like that again. What changed for them? Their mindset.

We shared a room and went out each night to network with other attendees, so we had a lot of time to chat. He mentioned to me several times that he is excited where his business is going and is excited to make the money he is finally making. He is making 7 figures a year. “I know I work hard,” he said to me “I can choose to work hard for $100,000 a year working for a company or I can work hard, take some chances, and make $1,000,000 a year doing deals.” I started working with him when he was fixing and flipping houses. Now he will not look at a deal without $200,000 in profits. What changed for my friend? His mindset.

To some this might sound arrogant. It is not arrogance at all. In fact, most of the wealthy people I meet, including everyone I met at that seminar, are extremely humble and open. The difference is they know their value. They put a value on their time and effort and will be paid for that. The mind will not allow them to accept less. That simple shift has allowed them to make big money. Here are a few mind shifts that have helped me turn $10,000 or $20,000 deals into $100,000 or $200,000 deals.

I deserve to be rich. There is no shortage of money to earn. There is no scarcity. Anyone that wants to be rich can be. Everyone deserves it but not everyone is willing to do what it takes. I understand that I deserve to be rich, with the understanding that it does not come free. I need to work hard and make smart decisions and then I can have anything I want. Look at it this way. Some people make 7 figures a year and drive their companies into bankruptcy. If they can earn 7 figures, why can’t you?

Think long term. This is not a race and not a get rich quick business. It is about building relationships and investing for the future. The quick profit game is played and lost all the time. I see it with investors, Realtors, lenders, and others on a regular basis. They are so interested in the commission or fee, that they forget to take care of people and add value. I focus on adding value and taking care of clients and partners. My reward for that over the years has been a steady growing company that pays me each and every month and a database of vendors, partners, and deal finders that want to work with me to make big deals happen.

Leverage is my friend. I have learned the hard way that financial leverage is a dangerous necessity. With that said, I would not be doing the big deals I am doing now without it. I have written articles about this topic because I believe it is extremely important. Leverage helps you accomplish more with less. It could be leveraging other people for their time, knowledge, and skills; or leveraging money in the form of partners or loans to get a deal done. Myself and several other people I know have built up a single family rental portfolio that is producing big time today because we leveraged hard money with bank financing. These are simple little deals that will produce big profits over time.

I can’t fail because I won’t give up. You only fail at something if you stop trying. I understand that I will be successful 100% of the time because I am not willing to waiver on my commitment. This has served me over the years, but has not been easy. I remember times I would be laying in bed wide awake at 3 am wondering how I was going to get out of a mess I got myself into. Thinking how easy it would be to let people down and stick my head in the sand. How my life, at that particular time, would be so much better if I just gave up. It was those trying times that made me who I am. Because I did not give in to the temptation of defeat, I made it through, learning the lessons necessary to become who I am.

Excuses are for losers. Harsh? I don’t think so. If you try and fail, great. The key is to take ownership of that result, learn from it and try again. The second time might have a better outcome. If you fail again, own the result, learn and try again. As so it goes. When you fail and make an excuse, you are shifting blame and not accepting the educational value of the failure. Losers do that. With that said, you have to try before you can fail, and so many people don’t even try. The reason? A bunch of excuses. No matter how broker you are, no matter how limited you are on time, no matter how unfair your life is, there is still a path to success. When I got started as a real estate investor, I was broke with no credit. I was in college full time and worked at night in a call center 30 hours a week. I was “unable” to work on my business except Saturday nights and Sundays. So I decided to make my calls as I walked between classes. I decided to use my lunch break to sit in my car and work on deals. I decided to give up every single weekend to hang signs and visit sellers. I decided to make it work.