Property Scam # 2 – Joint Ventures
Number two is the scams that can come into play when your working with joint ventures.
Certainly, not all joint ventures are bad, far from it. We have had alot of success with joint venture and we also know customers and clients that frequently use joint ventures to grow property portfolios and do so very successfully.
But, some joint ventures aren’t structured correctly from the beginning. Others might be structured intentionally to scam you.
There are unfortunately many stories of these going wrong in the national press.
Often this can be because their complexity makes them particularly vulnerable to manipulation. With many ways to structure a joint venture partnership or property purchase it can create unaligned incentives.
The safest approach to avoid a property investment scam like this often places the property in the funding partner’s name, securing their investment through direct ownership. Yet increasingly, we’re seeing proposals where investors are asked to transfer funds directly to the operator’s account – an arrangement that can leave investors dangerously exposed.
If you are seriously considering this property strategy, then you should only do so with the solid advice of a solicitor on your side to provide advice, guidance and to look at any contract agreements to make sure you are secure.
