Real Estate Investment is the most common investment these days as the real estate industry is growing rapidly. The government of Pakistan is supporting the industry and is generating new exciting projects that are going to uplift the construction and real estate industry real high. The construction industry will witness its uprising and the most prosperous time now.

A large number of people would take the benefit and start their businesses or investments in the real estate industry. The most common investment type is already real estate investment but after this progress, the investment ratio shall rise surprisingly.

Where many people will start investing, there are those opportunists too, who will try to make money out of it illegally. One such way is investment scams. Investment scams are so dangerous as they left nothing with the investor and the scammer gets all of it.

Jaageer.com has come up with an idea to educate the people on a few real estate scams and how we can avoid them and secure our resources. But first, we will introduce you a few investment scams besides real estate investment scams

Pyramid Scam

Pyramid Scam is the most commonly used scam in Pakistan. In this type of scam, the scammer tells the investors that their small investments shall get bigger within a few days.

The scammer asks the investors to include other people in this investment too. People keep on adding others too to enhance the area of investment. Once the scammer realizes that no more people would be added to this scam, he elopes immediately leaving nothing for the people who invested their resources.

Pump and Dump Scams

These scammers reach out to potential investors asking them to buy a low-priced property or any other stock in some business you do not know and you have heard of it. For a short time, the rate of these properties or any other stock shall rise to maximum and when a considerable number of people would invest and spend their money on it, the scammer would run away, leaving no sign of any investment. The scammer would sell his share and the people would be left alone with nothing, having stocks of no value and the property land would be illegal too.

Real Estate Investment Scams

Investment scams are the most commonly used scams in Pakistan. The scammer flatters the investors to invest in some property from where they can get a large amount of profit. The fake developers offer the people a new real estate scheme, most probably in another city, and ask them to buy a plot, or shop on minimum rates, telling as if this is a promotional rate. Once the considerable numbers of people have bought the properties and the scammer has got enough money, the scammer elopes with all the money and the investors are left out with no property and no money.

How to Identify the Investment Scams

Here are a few ways how scammers often behave and we can identify them. If someone contacts you using such tactics, beware and know that it is a scam.

1- Comes Out of the Blue

A scammer would contact you out of the blue, saying he has an exciting offer for you to invest in the real estate industry, stating it is a brand new or off-shore scheme.

2- Limited Offer

A scammer would pressurize to finalize everything quickly as it is a limited time offer.  He will emphasize rapid decision making as a lot more people are in the waiting.

3- Personal Information

A scammer would have all the information about you even if you have not told him anything. He would make you feel as if he knows you quite well.

4- Too good to be true

The scammer’s offer would be too good to be true; it would seem like a fairytale. He would make you feel as if this is the last offer you are going to have in your life.

5- Constant Calls

A scammer would constantly call you reminding you to have to make a decision. He would keep calling you until you say yes or he would ask you to tell the final decision to him on call as so many people are waiting and he cannot make people wait like this.

How to Avoid the Scammers

Here are a few simple tips that people can follow to avoid any such scams

1- Do not provide personal information

Do not disclose your identity to any stranger. You might come across several people asking to fill the surveys, having asked for personal information. Do not ever go for such surveys.  As they will get your information, and you will be surprised when someone would call you, knowing all your personal information to invest in their scheme.

Also, be careful when telling anyone your banking details, someone might hear and use it for some illegal scam in your name.

2- Protect Your Identity

Identity theft is not a lie, it is true and many people fall prey to it every year. Someone might use your personal information; say your name for starting any illegal activity, investment, or any fraud. In the end, if they are caught, you will be held responsible for everything.

To protect your identity, keep your ID card, ATM card, and all such informative cards or things safe. Such issues are often seen when a person misplaced or forgot their cards somewhere. So, try to protect your documents and do not share any of your documents with anyone unless it’s something official.

3- Unsolicited Offers

Be aware of unsolicited offers. Firstly, be alert while receiving a call from an unknown number. Secondly, if someone calls you saying you have won some price and they need your details, cut the call down. Do not fall for such temptations.

If someone calls you saying they are providing you an opportunity to invest with them to gain maximum profit in minimum time and you would have to pay some advance money, never go for such offers.

4- Research

Before investing your resources, ask many questions to the person you are investing with. Try to invest in some legal company that has a history. Do not go for newfound investment companies. Check the background, ask for references, and then make your move.

Although the scammers would try as much as they can to play safely in making you fool but following some prevention shall help you stay safe. Do not invest in real estate if the company has no history. Check the background before investing your resources. Ask a lot of questions about the company and its details. Do not fall for any flattering or temptations.

Scammers would do everything to make you believe in their scheme and to make you fool for investing but you have to be careful before investing in any housing or commercial scheme.