The Better Business Bureau is cautioning consumers against real estate ventures that promise a big return.
Seminars are being held throughout Northeast Ohio that promise to show how the average consumer can become wealthy by flipping houses. The BBB has seen exaggerated claims stating that in individual can make upwards of $10,000 a month by house flipping.
“There are many seminars and late night infomercials that promise consumers an opportunity to get rich quick, but the supposed training materials leave consumers with empty wallets,” said Melissa Ames, Director of Marketing for the BBB. “House flipping is a very risky investment and only those individuals who can afford to take a loss should consider this industry.”
The BBB is offering the following advice to consumers that are considering entering a real estate investment opportunity:
· While the initial seminar is free, additional seminars and training materials can cost thousands of dollars.
· Don’t fall victim to high-pressure sales tactics. Take the time to carefully research the opportunity carefully and don’t sign a contract until you fully understand all of the terms.
· Check out the refund policy and be sure to get all promises in writing.
· Many inexpensive homes on the market have been empty for long periods of time or may have been vandalized, which will make for costly repairs and will make it difficult to sell quickly.
· If you purchase a home with violations, you could face fines or criminal penalties for failing to fix them.
· If you plan on financing the purchase of a house, be sure to budget for the appraisal, filing fees, insurance, taxes and maintenance of the house until it is sold.
· Check out a company with the BBB before doing business. Be sure to check out a company’s BBB Grade and complaint history. BBB Business Reviews can be found at www.youngstown.bbb.org.