There are a lot of scams out there and most of us really feel like we would know if we were being scammed. The truth is that when it comes to investments, it’s a lot harder to detect a scam. The best thing you can do is stick to a general rule of thumb and that is that if a deal sounds too good to be true, then it probably is. There is also the issue of a bad business model, where it didn’t start off as a scam and never intended to be, but ended up as one.
- We all think that we can avoid being scammed, but that’s a hard thing to avoid with investment.
- To avoid a scam, remember that if it’s too good to be true, then it probably is.
- Not all scams appear to be scams, some of them start out legitimate but end up to be bad.
“Part of becoming a great investor is creating a systematic process for investment that covers the possibility of scams, Ponzi’s and bad business models in property or any investment.”