Don’t Fall for These Scams as an Apartment Investor, Ep. 778
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Written by John Casmon

February 10, 2026

This week, learn how to protect yourself from scams that quietly destroy returns and credibility in multifamily investing. You’ll explore real-world examples involving questionable wholesalers, unethical contractors, property management fraud, tenant scams, and misleading coaching programs, along with practical safeguards you can put in place. The core message is simple: the fastest way to lose money in multifamily isn’t market cycles, it’s trusting the wrong people.

Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Key Takeaways

  • Focus first on not losing money before trying to maximize returns
  • Learn how to spot red flags when evaluating wholesalers and off-market deals
  • Understand common contractor and subcontractor fraud risks
  • Protect yourself from property management and tenant-related scams
  • Ask better questions before paying for coaching or education

Topics

Why Avoiding Scams Matters More Than Chasing Returns

  • Investing success starts with capital preservation
  • Scams exist in every industry, including real estate
  • Sophisticated scammers actively target investors

Wholesalers and False Deal Control

  • Difference between legitimate wholesalers and bad actors
  • Red flags like proof-of-funds requests before sharing financials
  • Risks of marketing deals without legal authority or contracts
  • How fake deal control can blow up transactions

Contractors and Construction Fraud

  • Distinguishing poor operations from intentional scams
  • Theft through inflated invoices, material misuse, or diverted funds
  • Real-world example of unpaid subcontractors and liens
  • Importance of lien waivers and payment controls

Property Management Fraud and Internal Theft

  • Risks when managers have unchecked financial access
  • Examples of missing rent payments and stolen deposits
  • Limiting account access and enforcing approval thresholds
  • Eliminating cash payments to ensure transparency

Rental Listing and Tenant Scams

  • Fake listings used to steal security deposits
  • Rent prices that are “too good to be true”
  • Tenant fraud through false employment or income verification
  • Overpayment and bad-check refund schemes

Coaching, Mentoring, and Education Red Flags

  • Difference between bad outcomes and actual scams
  • Bait-and-switch seminar tactics
  • Importance of knowing who your coach actually is
  • Evaluating deliverables, experience, and risk mitigation
  • Distinction between mentoring (process-based) and coaching (person-based)

📢 Announcement: Learn about our Apartment Investing Mastermind here.

Next Steps

  • Reach out to John through this form or directly at john@casmoncapital.com 
  • Tighten due diligence around partners, vendors, and deal sources
  • Require contracts, documentation, and lien waivers consistently
  • Eliminate cash handling and increase financial transparency
  • Ask direct questions before investing in coaching or education
  • Surround yourself with experienced, active multifamily investors

Thank you for joining us for another great episode! If you’re enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don’t miss an episode.