New Real Estate Scam Targeting Israelis/ American Israelis

[Chaikel]

There is a new scam that is really gaining traction, seemingly targeting the charedi community specifically (I'm assuming due to the widespread lack of business knowledge), where they are selling houses that can't be sold for even $1000, for $50k+.

Yes they are offering houses in Euclid for $50k+ (any Clevelander will actually laugh out loud when they hear that), and guaranteeing 10% return per year for the first 3 years, plus they are advertising an average of 16% return.

Rav Ahron Chodosh has asked my brother to be mefarsim this scam, and to approach the the Jewish papers to stop the ads, and start running ads warning the public about this scam. In addition, just today, a top law firm in Israel has tentatively agreed to take on the case pro bono, and start sending out C&D letters to anyone running these ads.

I doubt this will stop them, so if you know any Israelis that may be the type to get involved in something like this, please give them a heads up. Their sales pitch is quite convincing. I know a few intelligent people that were convinced.

[moish]

how is this a scam? everyone should be doing their due diligence.

[Chaikel]

how is this a scam? everyone should be doing their due diligence.

How does that make it not a scam? If I sell the Brooklyn Bridge I didn't scam the guy because he should be doing due diligence?

[Moishebatchy]

How does that make it not a scam? If I sell the Brooklyn Bridge I didn't scam the guy because he should be doing due diligence?

+1

Shall I hang your post in my yeshiva?

[moish]

How does that make it not a scam? If I sell the Brooklyn Bridge I didn't scam the guy because he should be doing due diligence?

if you started selling bridges across america, i would not warn people not to buy from you

at some point, when something is so outrageous, i would think it wouldnt be classified as a scam. but i might be wrong

[Chaikel]

+1

Shall I hang your post in my yeshiva?

I don't think your yeshiva is a target, but I have flyers on the behest of various askanim across the country. I can send them to you

[Saver2000]

if you started selling bridges across america, i would not warn people not to buy from you

at some point, when something is so outrageous, i would think it wouldnt be classified as a scam. but i might be wrong

Correct.  As the OP stated "the scam is gaining traction".

What's so hard to understand?  People aren't business minded and when they hear a good deal they jump in.

Generally speaking,  $50k for a house is a good deal. $990 for a house is the exception.

[moish]

Generally speaking,  $50k for a house is a good deal. $990 for a house is the exception.

that is one of the most ridiculous and outrageous things ive heard in a while. there is no such thing as a "generally speaking" when it comes to prices of homes

[Moishebatchy]

I don't think your yeshiva is a target, bbut I have flyers on the behest of various accross the country. I can send them to you

Please do.

[Saver2000]

that is one of the most ridiculous and outrageous things ive heard in a while. there is no such thing as a "generally speaking".

[jj1000]

how is this a scam? everyone should be doing their due diligence.

People are dumb, and need to be spoonfed. I figure as a ddf'er you'd of realized this by now.

My own bubby every few months let's me know about the phone call/ email she got from a company that's giving her a free iPad or paying 10% of her grocery bills for just giving her valuable feed back etc.

[PlatinumGuy]

that is one of the most ridiculous and outrageous things ive heard in a while. there is no such thing as a "generally speaking" when it comes to prices of homes

+1

[MEIR613]

Some will pay top $ to be near The Yeshiva.

[Moishebatchy]

Some will pay top $ to be near The Yeshiva.

Ummmmmmmmmm... nothing personal, but how is that even remotely relevant?!

[sky121]

Not sure how "new" this scam is. I actually met a guy a few years ago that told me a few 'nice' frum hidden from NY sold him some buildings in Downtown Detroit for a good price.  You literally couldn't give the buildings away for free.

[Chaikel]

Not sure how "new" this scam is. I actually met a guy a few years ago that told me a few 'nice' frum hidden from NY sold him some buildings in Downtown Detroit for a good price.  You literally couldn't give the buildings away for free.

They have now opened a store front from across from the main building of the Mir. They are advertising in all the papers. It's really starting to blow up.

[ChAiM'l]

Not sure how "new" this scam is. I actually met a guy a few years ago that told me a few 'nice' frum hidden from NY sold him some buildings in Downtown Detroit for a good price.  You literally couldn't give the buildings away for free.

I remember that one.

[Nitantnel]

Can someone please enlighten me what kind of house are these "that you can't even give away for free" and that you can buy for 950.00??

[jj1000]

Can someone please enlighten me what kind of house are these "that you can't even give away for free" and that you can buy for 950.00??

bad neighborhood? You never drove through am abandoned neighborhood where just drugys live? Crime rate of 100% per person.

[henche]

Any of the posters here who think it is a good deal, can pm me and I will see if I can arrange them a special sale. I think I can get you a nice house there for only 45k, which is a loss to me, but I am willing to do it to help my friends here.