Property Investment Scams In The UK: In a recent video, I reveal the 10 most common scams happening right now in the UK property industry. In the video, I show you exactly how you can protect yourself from getting duped by these schemes.
If you want to see exactly what the biggest property investment scams in the UK are right now, make sure to watch the full video until the end. You can find the video at the top of this page or via my YouTube channel!
In this article, I will give you a brief summary of the 10 worst property investment scams. If you find this list helpful, please share it on social media. With your help, we can protect the property investment community from scammers!
1. Property Investment Scams In The UK: Dodgy Deal Sourcers
Deal sourcers are a great way to save time as a property investor. They can find deals for you, meaning you have more time to invest. However, if you don’t know how to assess a deal, dodgy deal sourcers can sell you bad deals! Ensure you are educated before buying.
2. Lease Option Lies
Lease option agreements are a great way to secure a ‘buy now, pay later’ deal on property. But they must be done correctly. A restriction order must be registered with Land Registry, and you will need lawyers involved, otherwise it isn’t worth the paper it’s written on!
3. Fake Training Gurus
There is some very good property training out there, such as the training offered by my company. But there are also fly-by-night operators. Make sure you are dealing with someone with a proven track record.
4. Shady Builders Taking Money Upfront
Don’t pay a builder upfront, as some will take the money and not finish the job. Have a schedule of works, and pay in stages.
5. Property Investment Scams In The UK: HMO Licensing Evasion
If you buy an HMO, make sure it has any planning permission and licensing it requires. Scammers sell HMOs without the proper permissions, sometimes with fake tenants supposedly paying high rents. The buyer ends up with a property that can’t be used as an HMO, and no tenants!
6. Fake Serviced Accommodation Numbers
This is where a property is sold to be used for serviced accommodation, but based on fake or overoptimistic numbers. Make sure you understand the average nightly rate, and occupancy rate, in the area.
7. The Fake Landlord Rent-to-Rent Scam
If you are looking for a rent-to-rent deal, make sure you are dealing with a real landlord! There are fake landlords staying in properties on Airbnb, and taking deposits on the properties as if they own them.
8. The Fake Rent-To-Rent Guarantor Scam
If you are a landlord and someone offers to take on your property as part of a rent-to-rent scheme, make sure they have the knowledge and experience to do so. Otherwise, you could end up not getting paid!
9. Joint Venture Rip-Offs
Joint ventures are a great way to invest in property. You might have the cash, but need someone with the time to put in the work. But make sure you only partner with someone you trust. If you pick the wrong person, they could waste your money without putting in much actual work.
10. Property Investment Scams In The UK: The Property Ponzi Scheme
A property Ponzi scheme is where you think you are investing in a property deal, but in reality payouts are simply coming from new investors joining the scheme. Things may seem fine for a while, but as soon as there are no new investors left, payouts stop!
Avoid Property Investment Scams In The UK By Getting Trained!
The best way to avoid property investment scams in the UK is to get some property training. If you know what a good deal looks like, it is harder for scammers to trick you! Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
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The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
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How to LEVERAGE other people's money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
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How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
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How to RECYCLE your money again and again
Don't just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
