Notes

Promissory Notes and Distressed PROPERTY Traps
Get-Rich Schemes- Con Artists

Lack of knowledge--that may be the problem

As retirement investments, promissory notes and real estate can be excellent investments. Or, they are able to become investment traps for the trusting, unsophisticated investor. Good sense, practical experience, education, and honest, competent, professional guidance will determine if the investor gets trapped or helped by the investment. Insufficient knowledge about buying general, and concerning the specific asset, may be the cause of most investing disasters.

Let's examine two categories of investment assets that are currently extremely popular with people and scammers. Distressed property and promissory notes will be the focus. The economic problems in the general economy and the real estate problems in lots of parts communities and neighborhoods have generated plenty of negative and fear publicity. This publicity is capitalized upon by the schemers; they use it to reinforce their selling points when pitching to the uninformed and the unsophisticated. Below are a few details on the way the pitch-men look for a profit using property.

Distressed Real Estate Schemes:Because of the collapse of the real estate bubble, owning a home offerings have already been on the rise-both legitimate and illegitimate. No matter market conditions, legitimate property investments are available and can be successful and profitable. But, in chaotic times, fast-buck artists capitalize on the overall climate of fear, uncertainty, and headline publicity to trick the uninformed and the unsuspecting into bad investments.

Bank owned property, properties in foreclosure, homeowner's in distress, pending short-sales, and owning a home pools have all been used investing vehicles to focus on the untrained investor. Most of these situations carry substantial risks, and each should be carefully evaluated. Oftentimes, it requires a specialist to understand and evaluate each of these individual opportunities; to rank them objectively, in accordance with their individual risks and rewards, isn't the job of a newbie investor.

The other category of investments that we will explore consists of promissory note investments.

Promissory Notes:During today's times, whenever a low-interest rate is being paid on all traditional investments, such as for example bank savings accounts and bank certificates of deposit, investors are investigating nontraditional investments. Many of these investors would like safety of their principal plus a higher rate of return in these uncertain economic times.

In many instances, these investors are just like a fish out of water when confronted with a promissory note investment. They have no experience with notes, their family and friends probably have no experience; consequentially, they're very susceptible to being tricked by a con artist.

The con man entices them by the promise of big returns and no risk. These promissory notes give investors a false sense of security with promises or guarantees of fixed interest levels and safety of principal. However, all investments, even legitimate ones, in promissory notes carry some risk that the borrowers is probably not in a position to meet their obligations.

As in all serious decision-making situations, a skilled, trained, objective, professional advisor can save the novice investor thousands in losses and several, many sleepless nights.

Red Flags: There are signs of danger--red flags-- to view for when discussing a potential promissory note investment with a salesman, representative, promoter, or selling investor. Certain phrases should put you alert. Here are some examples:

"I'm a promissory note salesman, and I'm here to assist you."

"I hear your question. Don't be worried about it now. We'll get to the answer later."

"This is usually a hot deal. ihouseweb reviews selling fast. Everyone need to get in onto it. Hurry and decide now."

Lawrence Tepper specializes in: Promissory Note and LLC, Valuation, and Appraising

Expert Witness----Expert Consulting Services

EDUCATION AND TRAINING

Law Degree /Accounting Minor University of Denver

Colorado PROPERTY Broker-- Promissory Notes Specialization

Certified Commercial Investment Member From National Assoc. Realtors

PRACTICAL EXPERIENCE

35 + years of appraisal and valuation experience for Attorneys, CPA's, Estates, and Financial Planners.
My Website: https://www.reviewsis.com/ihouseweb-review-is-ihouseweb-right-for-you/