Don't Get Caught Up in Real Estate Scams or Illegal Practices by William Bronchick

There are many ways to legitimately make money in real estate.  There are also many shortcuts that are illegal, fraudulent, or a downright scam.

Here's a few of them:

1. Lying on Your Loan Application.  Whether it be saying you will live in the property or overstating your income, these are lies that can get you caught up in legal trouble.  If you get caught, you go to Club Fed.

2. Cash Outside of Closing.  Giving the seller or buyer cash outside of closing not reported on the HUD is a violation of RESPA.  This can also land you in Club Fed,

3. Not Reporting Rental Income.  It's tempting to screw the Government by undereporting cash you receive, but why risk it?  Instead, be aggressive on your deductions.

4. Doing Work Without Proper Permits and Inspections.  Many investors will disturb lead paint, asbestos or hide hold.  All of these can get you sued, not to mention fined by the EPA.  Do the job right, and disclose it.  Also, don't do any life-threatening or health and safety repairs without a proper permit.

You can make an honest living in this business without breaking the rules.  Keep on the straight and narrow path and you will succeed.