Home » Business » Entrepreneurship

The Signs Of Deceitful Intent In Commercial Real Estate Investing

Aug 17, 2007
While investing in real estate, investors must be very careful, taking many precautions. They must check and verify all documents and be certain they have invested wisely. They must take adequate precaution to ensure that their investment is secure too and not subject to fraud or the deceitful intent of malicious people.

Understanding Deceitful Intent
Deceitful intent is any kind of deceit, breach of confidence, or distortion of facts, by which a person tries to gain an unjust advantage over another person. It is a method by which facts are knowingly misrepresented or stated intending to deceive a person with disregard to the truth and where the victim unaware of the malice believes the facts and acts according to an error in judgment.

Investors who are going to rent a property, or offer a lease option should be extra careful in closing any deals and must beware of deceitful intent. There are so many individuals who are on the look out for a trusting landlord, who doesn't have any fraud prevention programs, and unwittingly rents the property to these frauds. These delinquent individuals not only fail to pay the rent, but may also cause extensive damage to the property. They use unsuspecting landlords as revolving lines of credit and with deceitful intent abscond leaving nothing behind to trace them.

Senior citizens are the most common victims of commercial real estate investing fraud such as deceitful intent. They are unwittingly duped into buying uninhabitable property by smooth talking frauds.

When purchasing a property extra care should be taken to verify that all the facts are correctly represented, and that the buyer is not being duped by misleading statements. The buyer must carefully study each document, use a reliable attorney to verify that the buyer is not being duped in any way, insist on documented proof for any claims made about the property, study tenant information in detail, and ask for records to prove they are not delinquent or problematic tenants. Until you have analyzed and verified each and every document relating to the property and find no signs of deceitful intent, being certain it is a legitimate deal where you can expect to profit, do not sign any agreement. Investors must be extra careful when taking over an existing loan agreement or land sale contract.

Carefully scrutinize the loan balance, including expenses incurred, the tenant records, and liens, if any, before finalizing a deal. Carefully verify and proceed only if you are sure you are not a potential victim of deceitful intent.

Additional Help
There are firms that offer help as well as services and products to run businesses successfully. This includes software that guides you through the process of investing or running your own corporation
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
Please Rate:
(Average: Not rated)
Views: 147
Print Email Report Share
Article Categories