There is nothing wrong with being creative with your real estate investing but know that crossing the line can mean much more than a slap on the wrist.
Those accused of mortgage and real estate fraud now make up a huge percentage of those incarcerated in our prison system and probably outnumber the total prisoners in entire countries elsewhere in the world. The witch hunt and desire to make an example of individuals isn’t over by any means though. Unless of course you worked for a bank who participated in the giant $26 billion mortgage settlement.
Unless you have a few billion to buy your way out of trouble then know that real estate investing fraud could get you a life sentence, especially in California. One LA scam artist found this out the hard way when the judge threw the ‘3 Strikes’ rule at him and delivered a 25 to life sentence.
These types of sentences aren’t hard to rack up when it comes to real estate and mortgages either. The individual in this case was convicted of 17 felonies from just 5 transactions!
Some know they are doing wrong and don’t care. However, this is a shame when investors and administrative staff find themselves in these positions without realizing they were doing anything wrong.
This makes the first step to avoiding being caught up in fraud getting a good real estate education. You need to know the law and you need an up to date real estate investing education course which provides current strategies and tactics. Some of those old books and programs you have laying around likely contain advice and techniques which could be considered fraud today.
Make sure you have a system for keeping up to date on new changes too. This can come from subscribing to industry blogs, news feeds and real estate coaching.
