Scammers are getting better at what they do, and all it takes is one mistake to cripple your finances, so it pays to be vigilant if you own commercial property or are considering acquiring commercial property to add to your portfolio. But what types of scams should you be looking for? In today’s blog, we spotlight some of the most common scam attempts in commercial real estate.
Common Commercial Real Estate Scams
You may find it hard to believe that people fall for these types of scams, but the fact of the matter is that people can be victimized when they let their guard down. Here are some of the most common types of scam attempts we’ve run into in our industry.
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Too Good To Be True - Whether it’s commercial real estate or any other type of transaction, when something seems too good to be true, it typically is. Scammers may pretend to be the owner of a property and claim that they are selling it well below market value because they need funds now or have a family emergency that requires a fast sale. Oftentimes they aren’t actually the property owner, and if you send them any money, they disappear and you’ll never hear from them again. Don’t rush into an acquisition when things seem too good to be true.
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Catfish Properties - A property may look immaculate in photos, but until you’ve visited the site in person and paid for an inspection, don’t assume that pictures are a true representation of what the property looks like. Make sure you do your research on a property instead of just taking the seller’s pictures or words as the truth.
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Title Fraud - One scam that you won’t fall for if you trust your real estate transaction to the team at Commercial Partners is title fraud. Title fraud is when someone other than the owner attempts to illegally take ownership of the title. They may try to pass off fake title documents at the county clerk’s office or try to take out a mortgage on a property that they don’t actually own. Title fraud is something you’ll want to protect against when acquiring property and if you hold commercial properties.
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Wire Fraud - Scammers are getting better at making phishing emails look like they come from reputable financial institutions. Don’t click on any links or wire money online unless you are expecting an email and can confirm its authenticity with your agent or your bank. One wrong click can send hundreds of thousands of dollars to a scammer, so triple check that any emails or wire transfer requests you receive are legitimate.
You’ve worked hard for your money, don’t hand it over to a scammer because of a lapse in judgment. Don’t rush through an acquisition or try to save money by doing things under the table. Take your time, work with a professional title cleaning company like Commercial Partners and do things by the book to ensure your money stays safe. We know how to protect our customers from scams during acquisition or as their portfolio grows, and we want to help keep your financial future secure. For more information about common commercial real estate scams, or for assistance with your latest commercial purchase, reach out to the team at Commercial Partners today at (612) 337-2470.