R
by Tim Houghten | Photograph of Philip Boesch
eal estate fraud is alive and
kicking. Many industry ex-
perts anticipate real estate
scams and legal issues to
escalate in tandem with the new hous-
ing boom in the U.S.
So how can investors at all levels
enjoy sustainable investing, fend off
risks of fraud, and better fulfill their
goals of solving the issues they care about the
most?
The Emerging Fraud Boom
Median existing home prices rose 11.5% last year, according
to the latest data from the National Association of Realtors.
NAR forecasts the median price of a new home will hit
$289,700 by 2015. Based upon global, historical housing
cycles, the new U.S. housing boom phase should last anoth-
er seven to 15 years. As the momentum grows during these
periods, more and more Realtors get their licenses, lenders
have to work harder to compete for business, and an increas-
ing number of individuals scale up their invest-
ments in real estate. Unfortunately, this often goes
hand in hand with opportunists seeking to take
advantage of the market, resulting in the rise of
real estate and mortgage fraud. Sadly, barely a day
seems to go by without another real estate mogul
or industry worker being indicted or sentenced for
their part in these scams.
Hop onto the most popular online real estate
investment forums and a festering pool of potential
fraud can be found. Here new investors looking
for short cuts are often misled by poor information, and others
boast about how they fooled the banks and got away with it.
At the same time, the surge in new real estate crowdfunding
portals is set to make navigating the investment industry even
more complex.
So how can real estate investors avoid being victimized by
scammers, become unwittingly involved in fraudulent practic-
es, and prevent temptation? What should they do if they feel
something isn’t right?
Ledgers, Lawyers & Liquidity
Who better to ask about legal protections from real estate fraud
than America’s top legal eagle? The Boesch Law Group in Los
Continued on pg. 82
Realty411Guide.com
PAGE 81 • 2014
reWEALTHmag.com
America’s Top Attorney
on Combating Realty Fraud