You’ve probably seen web pages with enticing offers about guaranteed investment property in Florida:
Well, we can’t over-stress this:
Watch out – if it seems too good to be true, it probably is!
Florida is a great place to buy a piece of real estate, and guaranteed investment property is a fabulous goal – but you need to be more wary about these offers than almost any other purchase you’ve ever entered into.
Need more convincing? Here is an extract from the Orlando Sentinel on April 29th 2006:
Kissimmee attorney receives 5 years in prison
A suspended Kissimmee attorney has been sentenced to five years in prison for his participation in a fraudulent investment scheme.
S. Craig Wakefield must pay victims more than $220,000 in restitution after pleading guilty to one count of racketeering and a count of securities and investment fraud.
Wakefield . . . . solicited investors from all over the country, telling them they would receive a “guaranteed” return of 10 percent to 12 percent on their investments. Wakefield and his accomplices collected more than $376,000, but the victims never received promised returns.
This is just one example. Nearly 10 years on from that example, the risks are just the same and the promises just as disingenuous.
Need more convincing? Well, don’t take our word, how about the US government. Check out this SEC web page that includes the fairly plain advice:
Be highly suspicious of any “guaranteed” investment opportunity.
This is targeting financial and stocks and shares schemes, but the principles are equally as valid for real estate investment. And when it comes to Florida, we’ve seen many otherwise-careful buyers suspend their judgement because of the lures of the the sun and the lifestyle.
So . . . . you have been warned!
We strongly believe that, whether it’s Florida investment property, company shares or whatever, the promise of guaranteed income is more than likely a high-risk lure. And that’s whether you are talking to an attorney, a Realtor or anyone. We also believe that it’s illegal under Florida law – but do let us know if we’re wrong on that!