From the 2005 FDLE report (bottom of page 23 says);

“In reviewing assessments from universities, the mortgage and real
estate industry, federal and state government agencies as well as the
experiences of investigations within the Florida Department of Law
Enforcement, it is clear that diligence stops most frauds before
financial losses occur. It is also clear, that investors rely too much
on the very industry that may be defrauding them to conduct due
diligence. Proper due diligence should be conducted by independent
specialists and not solely by the parties involved. Though there is a
cost involved with hiring specialists, many of these reviews can be done
easily and cheaply. For instance, a basic review of courthouse
documents to ensure proper filings is a productive method to identify
and stop some frauds (such as taking on multiple investors for the same
property) and can be done for free on the Internet.”

 

Advertisements