Maureen,

Not sure but could that be considered fraud? Showing a false lease?

Today more than ever owners should be checking on their tenants. Thanks for the warning.

Neal, I think you are on to something.  Too bad the investors weren't on to it BEFORE they signed.

Sharon, amen! 

Tiffany, this is off topic, but you have one of the coolest profiles I have seen on ActiveRain.  Nice job.

Maureen, the article doesn't say; did the investor have an inspection?  My personal opinion is the investor should have had a Home Inspection performed as well as a Rental Inspection.  Might have saved the investor.

Maureen MIA huh, I'm off to read the rest on your outside blog. I wish I had a ton of money I would be buying up houses in Mi, I just heard at our General Membership Meeting of the Board this morning that Vistion was going to close in Ypsi, yikes that is the area that already has the most foreclosures and inventory. Pulte over-built throughout the 90's and it is a mess.

Kenneth, I agree. An inspection is very important.

Missy, we have overbuilt areas out this way too.  Pulte developments as well. 

If you are thinking about investing in a property, you better know where your tenants are, and that their rental payments are current!  It sounds like this investor was sold a bill of goods, and could use a good lawyer.  Maybe you should have them give me a call :-)

Neither of these people is my client.  I understand they both contacted attorneys.  I would have been happy to refer them to you, Stefan.  Thanks for stopping by!

You're very welcome, Maureen.  Your blogs are awesome, and worth visiting often!  One good thing about being a lawyer, is that we are often busier in a slow economy. 

Hi Maureen,

From what I understand from the article, it sounds to me like both of the "investors" could have benefitted greatly from having a knowledgeable REALTOR represent them. The first guy had a tenant or, so he was claiming, yet they never tell you all the details. Did the implicated tenant put down a security deposit, first month's rent, pet deposit? Did the tenant even file a legal application? Was a background check ever conducted? See they don't tell you these things...The Buyer may just as well have been trying to play "investor" without ever having any of the details checked off.

And the lady in the second story sounds like she should have had a REALTOR as well. She wanted to buy some investment property and that's what she got...unfortunately for her and the members of her estate, they may not live long enough to see the home appreciate. She also sounds like she fell victim to a predator in my opinion...someone who prays on weekness. How people like that sleep at night is beyond me.

-Keith 

Wow, that is just a whole bunch of ugly all in one place.  Since my mind doesn't work in deviant circles it amazes me when I hear about scams like this.

Keith,

Yes, I agree.  I am not sure if they first guy had a Realtor or how he found this investment property.  He paid considerably more for it that the last person who had bought it within the last year.  Certainly a buyers agent would have given him this information.  And certainly a buyer's agent would have insisted on reviewing particulars about the lease and the tenant.

Yep, her investment is going to keep costing her for a while.

Probably both people were victims of predators.  That is why I wanted people to read their stories.  So that nobody else will end up in the same boat.

Thanks for your comment.