Don’t Fall for These Scams as an Apartment Investor, Ep. 778

This week, learn how to protect yourself from scams that quietly destroy returns and credibility in multifamily investing. You’ll explore real-world examples involving questionable wholesalers, unethical contractors, property management fraud, tenant scams, and misleading coaching programs, along with practical safeguards you can put in place. The core message is simple: the fastest way to lose money in multifamily isn’t market cycles, it’s trusting the wrong people.

Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Key Takeaways

• Focus first on not losing money before trying to maximize returns

• Learn how to spot red flags when evaluating wholesalers and off-market deals

• Understand common contractor and subcontractor fraud risks

• Protect yourself from property management and tenant-related scams

• Ask better questions before paying for coaching or education

Topics

Why Avoiding Scams Matters More Than Chasing Returns

• Investing success starts with capital preservation

• Scams exist in every industry, including real estate

• Sophisticated scammers actively target investors

Wholesalers and False Deal Control

• Difference between legitimate wholesalers and bad actors

• Red flags like proof-of-funds requests before sharing financials

• Risks of marketing deals without legal authority or contracts

• How fake deal control can blow up transactions

Contractors and Construction Fraud

• Distinguishing poor operations from intentional scams

• Theft through inflated invoices, material misuse, or diverted funds

• Real-world example of unpaid subcontractors and liens

• Importance of lien waivers and payment controls

Property Management Fraud and Internal Theft

• Risks when managers have unchecked financial access

• Examples of missing rent payments and stolen deposits

• Limiting account access and enforcing approval thresholds

• Eliminating cash payments to ensure transparency

Rental Listing and Tenant Scams

• Fake listings used to steal security deposits

• Rent prices that are “too good to be true”

• Tenant fraud through false employment or income verification

• Overpayment and bad-check refund schemes

Coaching, Mentoring, and Education Red Flags

• Difference between bad outcomes and actual scams

• Bait-and-switch seminar tactics

• Importance of knowing who your coach actually is

• Evaluating deliverables, experience, and risk mitigation

• Distinction between mentoring (process-based) and coaching (person-based)

📢 Announcement: Learn about our Apartment Investing Mastermind here.

Next Steps

• Reach out to John through this form or directly at john@casmoncapital.com

• Tighten due diligence around partners, vendors, and deal sources

• Require contracts, documentation, and lien waivers consistently

• Eliminate cash handling and increase financial transparency

• Ask direct questions before investing in coaching or education

• Surround yourself with experienced, active multifamily investors

Thank you for joining us for another great episode! If you’re enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don’t miss an episode.