Dallas-Fort Worth Real Estate Investor Club

Approached by Temporary Housing Provider

  • 25 Feb 2021 6:52 PM
    Message # 10140204

    Has anyone had experience with short-term rentals through a temp housing provider who is working with insurance adjusters?

    I've been approached based on my listings, but without knowing anything about the people or company they represent, the deal seems too good to be true. 

  • 26 Feb 2021 12:37 AM
    Reply # 10141040 on 10140204
    Robin Carriger (Administrator)

    I'd need to hear more details to be sure, but, on the surface it sounds like a variation of a scam I heard about years ago.  In that scenario, the scammers promised to provide a turnkey investing solution.  They would find a great investment house for you, find a tenant, and manage the property for you.  All you needed to do was buy the property they found for you.

    There were, of course, multiple catches.  The scammers would convince their victim that the house was worth far more than it was actually worth, THEY and/or their buddies would end up living in the house as "the tenants," they would either never pay you anything or they would pay just a pittance "deposit" up front with a promise to pay the rest "very soon."  The scam would typically end when you, the investor, got fed up with never being paid.

    At that point, the scammers would be gone in a flash never to be seen again.

    Last modified: 26 Feb 2021 12:38 AM | Robin Carriger (Administrator)
  • 26 Feb 2021 4:49 PM
    Reply # 10143811 on 10140204

    This guy said he's with ALESolutions, which does have a slick website.  But I couldn't find the guy on LinkedIn. He said he was working with a family whose home had burned and their insurance hired him to find a place for them to stay for minimum six months. That is a realistic scenario.

    But he offered a ridiculous over-market rental rate, which made me assume that he gets a percentage depending on the rent amount. 

    It smelled too good to be true. When I insisted that his client complete and submit my prescreener questionnaire--just like everybody else--before I would speak to them, he disappeared.

  • 06 Mar 2021 12:22 PM
    Reply # 10170732 on 10140204

    Has anybody on this list had any kind of experience like I described?

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