0:00 Craigslist is so sketchy though yeah Craigslist feels like every time I'm on it like I feel like I'm getting an STD from that website [Music] all right we got a warning an official Nationwide warning from the FBI right now for B yeah they're warning us they're warning all of us all the female body inspectors oh yeah they got a they got a big warning big big warning I there's a huge influx of property rental scams this year it's up 64 64 . yep it's super up and like listen to this uh this isn't this is last year 11 000 about 11.5 people they reported losing uh 350 million dollars just to
0:50 scams alone oh that's a lot how how does the scam go well they can range from stuff that's super simple to like crazy stuff but one really really popular example is the the ████ classic Craigslist one where someone says hey I'm renting this property and they they place it way below market so it's super attractive and then you tell them you're interested and they say okay well then uh I need 150 for the credit check and then they send that in and then they go okay 500 bucks deposit I'll take the listing off and then you can come see it once the current tenants are out so then they send the money to take the listing off and then just never hear from them again and then they go to that address and they find that people live there and it's not even up for it's probably easier because during covet everything was remote so then they had to send the deposit and things online anyway so yeah yeah so and people were just used to doing online transactions and especially
1:41 if someone was still living there you would they wouldn't want you walking through to like look at their place like during covert yeah Craigslist is so sketchy though yeah Craigslist feels like every time I'm on it like I feel like I get an STD from that website which is which is why you gotta put like gloves on before you use a computer the Craigslist itch yeah but you only go there for a certain type of like thing you know what I mean you don't go there to buy your house the only thing they did change was the adult section that took out all because they used to have escorts yeah other than that it's been the same right and it just feels like it's a scammer's ████ like Gateway yeah honestly it seems like the escort section was probably the most legit part like trust me I am who I say I am yeah this is the one that's it's trustworthy you're actually paying for a service you want you know I will literally ████ your brains out I promise dude do you know of any like real estate scams that you you
2:31 tell like your clients to watch out for or anything like mortgage I think after 2000 and I think after 2008 all the scale kind of like died out but the biggest scam I think is rent to own so they create this hope and this dream that if you pay rent here whatever you pay above fair market rate goes towards a down payment like is that like at least to own police are like um the chances that someone's actually going to be able to afford to qualify to buy it's really Slim enough so they got you to uh to live there you're paying this rent and you're paying above that amount and you're treated like a homeowner so something goes wrong with the property you you're gonna own it oh wow that sucks and so you're like climbing up this ladder oh there's another bill crap there's another building homeowner so it's like to get to that point where you actually have the full down payment and still qualifying it's very slim to none and then next but why are you overpaying
3:21 because that difference you pay goes towards the down payment so let's say fair market are they saving it yes so to qualify it so it's a mortgage guideline that it's like I knew the guideline the loophole I'm gonna take it to the next level so whatever you pay above fair market rent can go towards the down payment and of course as the person's renting there they get all the responsibilities as a homeowner but they don't own the property so how do you keep saving towards that down payment if something keeps going wrong with the house yeah and then eventually they got you they got all that money and then you're out and then they have a better and someone else someone else just fixed the washer and dryer and they fixed it all that and then they got to get leave so I think that's the biggest scam there are legit ones but not as many as people think have you heard a leasehold please hold so they have this term in um Hawaii called fee simple or leasehold right so fee simple you actually it's
4:11 like a traditional ownership you own the land you do whatever for a leasehold you actually lease the land but it's your property so it's not quite yours huh yeah and then the contract is for whatever duration oh okay like 30 years or 100 years or whatever right so technically you you temporarily own it but it's not yours so like Hong Kong was maybe but but it's a weird situation because it's like so like let's say you can at least hold a unit in a a condo unit right yeah and so it'll be dramatically cheaper but it's not your land you can't you know it you don't you can't use it for collateral you can't do anything that is the most yours that I've ever heard that's crazy yeah so you you're you're in charge of the whole property
5:01 but it's not yours let's say you're in you're in conflict with the actual owner and you need to part ways do you gotta hire a helicopter to like peel your building a building away from the land and then drop it off somewhere there's probably some because your property is like yours but the land's not right yeah the building is yours but the land is not I'm gonna move it that's the biggest problem yeah that's gonna be loud I think the biggest well I think people how are you gonna pull your unit outside of the building if it's one of those two yeah do you ████ cut off some people think this is a scam some people don't think it's a scam you know I think everyone has their own opinion uh wholesaling so when you find a property that you can convince someone to sell to you at a discount and then you reassign the sell to someone else yeah some people think it's a scam because you're prey on people who don't know better they don't you know you
5:51 scare them so much where they don't want to list the property on the open market and then some people think hey they're the ones who will need to sell it to me why is it a scam so a lot of um wholesalers become more popular they'll look for properties that are jacked up or for older people hey this is how much you can get for the property I was able to get you more but they've already they already have an investor they already reassigned it to some people think that's fair because you know you're willing to you know they were willing to sell it to me you know most these wholesalers are licensed but then some people think it's completely wrong to do that yeah I mean they do that in all kinds of markets don't they like they did it with cars in a way I think it might be considered predatory but I don't know if it's illegal because you're just basically basically to me it's ████ up because you're dealing with people who don't know so you're taking advantage of their ignorance what if they don't want to know they're just like hey I don't want to deal with this then that's that's
6:41 different that's what garyvee does he's like oh buy this ████ Beanie Baby for seven bucks okay two hundred thousand dollars exactly it is yeah with everything so whose fault is it is it because the people were ignorant or is it because you came in and you gave them misinformation I think it depends on how you how you bought it yeah so like if you bought it just saying hey I'm offering you seven bucks for this Beanie Baby they take it cool but if you go you know what you're probably not gonna get anything for this but I'll give you seven dollars sure yeah there's that that's to me that's a little shady because you misinformed the person well that's I think that's the message so don't lie just just ████ offer the seven bucks and be away with it that's the maximum worst when you're like let's say your antique roadshow and you purposely tell people that ████ is worth nothing and then you ████ sell this
7:31 Pirate's Chef for ████ millions of dollars yeah that's different when you're the authority on valuing it and then you ████ lie yeah like a open door that's got a like penalties I forget from who for like 62 million dollars to do that because they would tell people come sell to us you'll get the max value and then people didn't get the max value there it but when a small guy does it then they're not going to well also I think when you say you'll get the max value you know that's misleading yeah well what is the max value right well but that's concept yeah you're already like putting yourself out there you got to give people like that out right it's like it's like knowing your skills you're probably not going to get you know more than seven dollars for this Beanie Baby yeah you know what I mean you gotta convince them you work the corner yourself you might get beat up and you only get x amount come with me you're well protected you have health care but hey but they're going to be
8:21 charged and how old is that profession but at the end of the day the person who's agreeing to it they're an adult agreeing to selling the home selling the beanie baby they didn't do their own research and homework and the information but they didn't care to it's super simple right yeah they didn't really like it wasn't a priority so how many out of the 50 states which state do you think got scammed the most California it's not California no Florida nope Oklahoma we got a thing which was the dumbest state right Mississippi all right that's close Alabama no Louisiana all right here I'll give you options I know South Dakota nope he said brass close to Mississippi here it is between these three between these three which one do you think it is Oklahoma Maine Massachusetts or New Hampshire
9:11 what I thought they're smart up there which one do you think it is out of those three I think Maine New Hampshire they also have the smartest ████ MIT ████ oh there you go all the smart ████ right there the smartest and the dumbest people just taking advantage because they got more Ivy Leagues in there if you ever stay right and they got it they got aggressive people in Boston so yeah that's true damn man yeah they show that's a lot they're um like the losses there for I think it says 2021 uh let's say like when you look at uh the second one which is New Hampshire 2.5 million in losses Massachusetts 8.9 whoa uh in scam losses pertaining to real estate and Rental wow and then that's drastically lower because most people that get scammed don't report it because they're ████ embarrassed of course so
10:03 you can probably bet that's maybe like 5x in reality because there's a lot of trustworthy people there and a lot of shady people there there's good people and then like most scams the perfect victim are just like well-meaning old people you know yeah or maybe like incoming freshmen and students to all those Ivy Leagues that aren't like native to the area or or like there's a lot on adults yeah yeah I mean or people with bad credit that can't get a can get a regular uh lease like oh you know what this might have you know or like some like Chinese person is coming over just trying to study it like MIT doesn't speak English that well it's like oh Craigslist out of all the websites too I know so here's just to finish it off just to like help people that are watching here's the things to avoid so that you don't become victims Craigslist do not wire funds to people you don't know don't put money towards a house you
10:53 haven't seen confirm the identity of the landlord ask for an ID like even if it's over correspondence be like hey send me a picture of your ID don't fill out apps online until you've met directly with the manager know the local rental prices look for online reviews and references be wary if a tenant wants to rent property unseen that's always a red flag you guys could go to property management companies too yeah well I think most of the people who are probably falling for this they don't have the credit to go to a property management right if it was me if you tell me about yourself hear their job occupation okay I can hustle this person by hearing their occupation I can talk and hustle them oh you get paid in cash oh I'm charging them yeah but oh you got a W-2 job never mind they're gonna report me first of all another red flag don't
11:44 um don't accept like if if the renter's out of town and they want to cash your check don't do it uh if they say they're out of the country and want to uh the rent sent to a foreign account don't do it if the names don't match between the person you're talking to and the account you're sending to don't do it don't accept overpayment for properties if you receive a check for more than the specified amount return it do not deposit it and those are like the main ways to avoid being scammed wait I don't like that last one what if somebody sends me more money don't deposit it I was agreeing all the way until the last one you've never been you've never the car the car situation wait wait wait explain it real quick they send you a check and then it bounces but then you need you they they need you to cut them
12:34 back the difference so let's say I'm gonna send you 15 grand I need you to send me back three grand because I overpaid because I was at this Western Union that's the only thing they had that's the classic Nigerian scam Minecraft because it's like oh I made a big mistake can you wire my money back yeah say ████ you bye [Laughter] foreign [Music]
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