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
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Focus first on not losing money before trying to maximize returns
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Learn how to spot red flags when evaluating wholesalers and off-market deals
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Understand common contractor and subcontractor fraud risks
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Protect yourself from property management and tenant-related scams
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Ask better questions before paying for coaching or education
Topics
Why Avoiding Scams Matters More Than Chasing Returns
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Investing success starts with capital preservation
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Scams exist in every industry, including real estate
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Sophisticated scammers actively target investors
Wholesalers and False Deal Control
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Difference between legitimate wholesalers and bad actors
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Red flags like proof-of-funds requests before sharing financials
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Risks of marketing deals without legal authority or contracts
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How fake deal control can blow up transactions
Contractors and Construction Fraud
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Distinguishing poor operations from intentional scams
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Theft through inflated invoices, material misuse, or diverted funds
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Real-world example of unpaid subcontractors and liens
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Importance of lien waivers and payment controls
Property Management Fraud and Internal Theft
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Risks when managers have unchecked financial access
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Examples of missing rent payments and stolen deposits
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Limiting account access and enforcing approval thresholds
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Eliminating cash payments to ensure transparency
Rental Listing and Tenant Scams
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Fake listings used to steal security deposits
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Rent prices that are “too good to be true”
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Tenant fraud through false employment or income verification
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Overpayment and bad-check refund schemes
Coaching, Mentoring, and Education Red Flags
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Difference between bad outcomes and actual scams
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Bait-and-switch seminar tactics
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Importance of knowing who your coach actually is
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Evaluating deliverables, experience, and risk mitigation
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Distinction between mentoring (process-based) and coaching (person-based)
📢 Announcement: Learn about our Apartment Investing Mastermind here.
Next Steps
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Reach out to John through this form or directly at john@casmoncapital.com
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Tighten due diligence around partners, vendors, and deal sources
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Require contracts, documentation, and lien waivers consistently
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Eliminate cash handling and increase financial transparency
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Ask direct questions before investing in coaching or education
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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.