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Sketchy real estate deal?

My parents (in Europe) are thinking of buying property in what seems to me like a sketchy deal. They are being offered a home near Pittsburgh, PA, for $50,000, as an investment. They are guaranteed a rent of $800 per month for the first two years (which works out as 19% a year). The whole thing seems very sketchy to me, but it seems they want to go ahead with it. Does anyone have any information about this? 
  • March 25 2012 - Pittsburgh
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Answers (3)

Profile picture for wordsmth
You didn't provide enough information to enable anyone to look into it. There are some basic questions, of course: Is the quoted rent reasonable for that type of property? Is management built into the costs/fees? How is maintenance handled? You say the rent is guaranteed: By whom? What is the property actually worth?

Look: It could be legit. It could be stretching the numbers. Or it could be an outright scam. It's impossible to know.

What your parents should do is contact a Realtor who operates in that area near Pittsburgh. The agent can determine the property's value as well as its rental potential. He/she--though likely not a lawyer--can look over the documents and provide advice. That's what I'd recommend.

Hope that helps.
  • March 26 2012
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You should find out if they have recently made any investments with gentlemen in Nigeria who have access to large sums of discovered money if your parents were willing to wire a small percentage of the total amount to be received.

  • April 03 2012
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I agree with previous post ask a local agent to look into it for them and possibly represent them so that they are protected.
  • April 03 2012
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