How to Detect a House-Flipping Scam

House flipping remains a classic way for people to earn extra income or even replace their day job. The process follows a simple formula: you buy a distressed property at a low price, increase the value by performing repairs, and then sell the house at a profit. Although the concept isn’t complicated, people don’t always know how to go about house flipping. So, they look for services to help. When doing this, it is wise to be mindful of some house flipping scam red flags.

Celebrity Endorsements

While some celebrities may endorse a product out of sincerity, many only do so for the money. Companies pay stars big money because their endorsements can bring in many sales. A question does arise here: Why does a quality service need a celebrity to endorse it? Can’t the company point to a track record of success and satisfied clients as proof of value? warns that HGTV-style fix-and-flip schemes should be viewed with extreme skepticism. A celebrity endorsement doesn’t automatically mean the house flipping company is dubious but take the endorsement a red flag.

They Want You to Pay for a Class

Scammers usually have something to sell. Passive Income MD cautions that an informational or educational product claiming to teach you the path to wealth and fame is commonplace with real estate scams. Teaching someone a legitimate real estate skill is honest work. Claims to show “hidden secrets” intended to reveal a strategy for becoming wealthy without working hard are best met with a critical eye and ear.

History of Civil Suits

Worse than BBB complaints are civil lawsuits for fraud, nonpayment, and more. Court filings are public record, so you won’t have too much trouble uncovering any prior litigation. Read up on the court records; they can tell you a lot about the company’s business and ethical practices. Search records thoroughly. If negatives come up in the search, be glad you discovered them.

BBB Complaints

The Better Business Bureau (BBB) provides a reputation resource for consumers and others to check out. A business with a high volume of complaints probably isn’t the most reputable one. A consistent volume of complaints shows a track record for dissatisfaction. Why add yourself to the list of the dissatisfied?

Look for the number of resolved cases as well. Don’t look at resolved cases as necessarily something positive. The company still did something to create the initial complaints.

House flipping could lead you to a great way to make money. Don’t allow a scam company to promise a lot, deliver nothing, and take your funds. Be sure to be wary if they have celebrity endorsements, a poor BBB record, or any history of civil litigation.

Posted in

Common Health Issues That Affect Middle-Aged Men

By Andrea Kay | January 27, 2023

As you age, your body often declines in health. Because your body is not in its prime and your organs have been working longer,…

How to Measure Product Success in Your Business

By Andrea Kay | January 26, 2023

As a business owner, it is paramount to measure the success of your products in order to expand and reap profits. By surveying which…

What to Do Before You and Your Partner Decide to Have a Baby

By Andrea Kay | December 27, 2022

Having a baby is a big step to take with your partner. You’re bringing a new life into the world and you’re permanently changing…

What to Do Before Buying a Business

By Andrea Kay | December 27, 2022

If you want to build wealth, owning a business can be a great way to do that. Some people make that happen by building…

Why Old Software is Hurting Your Business

By Andrea Kay | December 27, 2022

Software is essential for just about every conceivable business. No matter your industry, no matter your market, you need to be taking advantage of…

Crucial Business Functions That Require Greater Investment

By Andrea Kay | December 27, 2022

There are a lot of elements that go into running a business. However, some of them deserve special attention. When you shift your focus…

What You Need to Know About Smart Credit Card Use

By Andrea Kay | December 9, 2022

Are you applying for a credit card for the first time? Having a credit card will open many doors for you, especially if you’re…

How to Improve Cybersecurity at Your Business

By Andrea Kay | December 9, 2022

Every business in the modern world is going to incorporate a substantial amount of technology. This will also be true for your business, no…

Health Risks That Increase as You Get Older

By Andrea Kay | December 7, 2022

There are plenty of things to look forward to as you age. Retirement tends to be one of the more commonly discussed and planned-for…