August 3rd, 2008 | 
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The million dollar question.
There is no doubt real estate is an exceptional investment vehicle; it has proven itself time and time again over the years. With traditional real property investing, there is an average 6% rate of return. However, when factoring in unconventional investing, such as tax lien property, foreclosures, or the even newer ?lease-option purchasing? that has hit the market, an even higher return is not uncommon.
So why question the ad, ?Real estate investment ? guaranteed rental, absolute goldmine??
First of all, you should be skeptical of forms of advertisement that boast unrealistic returns. In the investment world, an unrealistic return is often the first red flag of a scam.
Secondly, anyone that has any real estate experience knows there is no such thing as a guaranteed rental. Even with good properties, there is often a time, if only between rentals, when your property will be vacant. No one can guarantee whether or not you will be able to rent out your property. This goes back to unrealistic promises.
This may seem odd, but anytime I read the word ?goldmine? in advertisement, I automatically discount what I read. If it were truly a goldmine, the owner would never let it go. This is a term used to sell products. The person on the other end is trying to unload a piece of property and is using this term to draw attention. Proceed with caution.
Real estate, as with any other type of investment, has its ups and downs. As with anything else, beware that scams exist and protect yourself so you are not the next one taken.
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- Are You A Real Estate Investing Dummy
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