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KENNEL PROPERTY INVESTOR SCAMS!
Kennel buyers beware! If you are
looking to buy a boarding kennel or private show kennel property you are at
serious risk to lender-investor-banker scams.
Sept 2015 | TheDogPress.com
Cordingley, Licensed Specialty Broker
recently been made aware of some clever investment scams out there.
With the tightening of bank lending standards — and the tight money
market in general—there have been many predatory lenders come to the
They pose as investors, or as
Angel investors. In the last few weeks I’ve learned of two instances of these
scams targeting the kennel buyer market.
The way they work is to get
you to give a deposit upfront, to “cover their expenses”. Sometimes they really
have offices; often their office is just a cell phone. They frequently do not
need an appraisal; they can work off your business plan. They do not need loan
approval, and there is tons of cash available. They are not too concerned with
your credit; they are willing to help the underdog.
For many people wanting to buy
an existing kennel business, this sounds like heaven. Instead, it may be the
beginning of a frightening loss of whatever down payment you may have tendered.
No legitimate investor wants
to lend money on an unverified business. If no bank or legitimate lender seems
to think you are a good risk, why would someone loan you the entire amount, with
no guarantees, in many cases without even having seen the property, much less
have had a good appraisal?
These kennel property
"investor" people are good at making their investment sound real. They don’t
call them “con men” for nothing. They are your salvation, and your best friend,
at least until they have your money. Then they are mysteriously unavailable. No
phone calls are returned, and they have changed business addresses.
In one recent case, the
property investor kept saying he’d sent the local real estate broker the
contract; the check for the earnest money must have gotten lost in the mail. The
contract was indeed sent, after numerous requests, with none of the pertinent
information filled out. No check ever arrived. The closing attorney contacted
this investor, and was told it was to close in a few days. How was this supposed
to happen? There wasn’t a contract on the table! No funds had ever been sent. No
phone calls from either the real estate broker or the attorney were ever
“investor” kept lying to the buyer until the very last moment. Even up to the
point that the buyer left his home and put his stuff in a U-haul to move to his
new home and take over his new business. He had put his faith and confidence in
this scam artist. Charges have been filed with the FBI for Interstate fraud, and
with the Attorney General of the State involved. That doesn’t help the poor
buyer or the seller, both of whom were kept on the hook and made plans based on
the promised closing.
If you are dealing with a
"kennel property investor" or investment group, be careful! If they want a
deposit up-front, be even more wary. If the "investor" isn't concerned about an
appraisal or says they are not worried about past credit, run the other way and
keep looking. Don’t deal with them.
It is better to put off your
dream until you can save sufficient purchase funds, than to lose what money you
have to a scam—and still not have your dream kennel property.
At present there are only two
kennel property specialists in the U.S. We don't know the other firm but
we highly recommend
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