Even without the full details of the transaction being revealed, the news reports that Donald Trump is using a Leaseback strategy with Ed McMahon. As we have discussed on earlier posts, the Leaseback, or Rent Back, is an investment technique where a homeowner would sell a property to an investor, and then have the ability to rent the property from the investor for a specified period of time.
Be careful – just because this may work for Ed and The Donald doesn’t mean this is going to work for you.
The leaseback is a "save your home" strategy many pre-foreclosure victims are offered these days, but these rescues come hand in hand with real estate investor agendas attached. When homeowners are educated and empowered on how to execute this investor technique properly (with all of their rights protected and a clear exit strategy that allows them to save their equity and/or save the home), it is a strategy that can work.
BUT, if a homeowner agrees to do a rent back to stop foreclosure of their home WITHOUT the proper education, you can fall for one of the easiest cons designed. This scam is designed to make you feel comfortable – someone is promising you that you can stay in your home, and that will provide you with a false sense of security. At the same time, you sign away your ownership to someone who then has control of your property, and the right to do whatever they want with it.
Realize that even Donald Trump has an agenda. Get the education you need about the scams that are out there. Know who you are dealing with and what they are promising!
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