Her name was Lena. She found me in a mastermind group. Said she had a fix-and-flip lined up and needed a partner for the down payment and reno costs. Fifty grand, a quick turnaround. She was confident. Had answers ready. She told me she picked me because she could tell I knew what I was doing. I believed her on all of it.
So, I wire transferred $50,000 to her—a woman I had known for maybe six weeks. I thought it was the start of something good. It wasn’t. It was my first mistake in getting caught up in her scam and unfortunately, not my last.
We signed official legal documents and a proper joint venture agreement. I wired the money. Then two weeks in she said, “Actually, this property would do better as a short-term rental.” Different plan, so needed more cash. Then came renovation invoices I hadn’t agreed to. Twenty thousand. Then fifty thousand more, through credit cards this time. Then more after that.
By the time I finally understood what was happening, she had taken more than $120,000 from me. There was a hurricane. There were title problems that appeared the day before a refinance closing. She proposed switching everything into her own LLC to solve it, adding me as managing member. I found out later that meant nothing because she had full voting rights. After that closing, she removed me from the LLC altogether.
A buyer came in on FHA, went completely silent, no explanation. Lena changed her story again. That was more or less where it ended for me. The worst part is not the money, though the money was painful enough. The worst part is that the signs were there from the beginning. I just had no framework for reading them.
That is what this article is—the framework I didn’t have.
Abrupt, frequent, and significant changes in plans
Things change in the midst of deals. That is just true. A lender needs one more bank statement, a buyer asks for a repair credit, the closing date shifts by a week. None of that is worth panicking over.
What is worth stopping for is when the changes are large, keep coming, and the explanation doesn’t hold up. With Lena, I could write a list, but sticking to it wasn’t possible. The project type changed. The lender changed the morning before closing. The LLC structure changed. Each one came wrapped in a reason that sounded just barely plausible, and I kept accepting them one at a time.
Looked at together they were something else entirely. If you are at the table, paperwork in front of you, and someone wants to swap title companies or renegotiate terms right then, you can stop. You are allowed to stop. Nobody is going to die because closing got pushed. Scammers specifically use that moment because they know you are exhausted and want it over.
Unusual urgency
Speed is a weapon. It works because when you’re moving fast you stop asking questions you would normally ask. The version I have heard more times than I can count goes something like this: “I’d love to do this deal with you, but we have to get it done by today, otherwise I’ll have to go with another buyer who is offering more and is ready to close today, all cash.”
That other buyer is fiction almost every time. Sometimes the seller is just anxious and the deal is real. But urgency that appears out of nowhere, with no logical reason behind it, is worth treating as a warning. Slow yourself down on purpose. Missing a deal is something you recover from. Getting buried in a bad one is a different situation entirely.
Inconsistency in story and communications
Lena told me early on she would share names of lenders she had worked with and the people who had been her JV partners before me. She never did. Something always came up. At the time, I let it go. Looking back, it was a glaring problem that I rationalized away because I had already committed.
People who are being honest with you tell the same story the same way. When the version keeps shifting, when they claim you agreed to something you know you didn’t, or swear they mentioned something you’re certain never came up, that pattern means something.
Yes, people forget things. We all do. But when it keeps happening with the same person, in the same direction, always somehow in their favor, it’s not forgetfulness. Take notes from day one. After every call or video meeting, send an email recap. Even a short one. This gives you a record, and it also tells you something about the other person depending on how they respond to it.
Minimal or no online presence, no references
Before I work with anyone now I look them up, and I mean actually look, not a thirty second scan. Multiple pages of search results. Social media, who follows them, what they post, what they comment on other people’s posts. If they claim media coverage, I find it and read it.
A journalist who features someone as an expert has already done some vetting. That carries weight. A working real estate professional in this era has a footprint. Reviews on Zillow or Realtor.com, a Google Business profile, something that shows they have actually done what they say they do. An investor should have a track record you can at least partially verify. If you search someone and come up mostly empty, that is not neutral. Nobody operating for real in this industry is invisible online.
Highly critical of others in the industry
When someone I might work with keeps talking down about other people in the business, I go quiet and start watching more carefully. In my experience this comes from one of two places. They feel like they can’t compete on their own, so they try to make everyone around them look worse. Or they have already burned enough bridges that they want to get ahead of what those people might say about them. Both versions are a problem.
And here is the thing that I think people miss: if they talk to you like that about others, they are talking to others like that about you. Your reputation takes a hit just from the association. Beyond that, people who operate that way create friction everywhere. Burned relationships, unnecessary conflict, and all of it eventually lands in whatever deal you are trying to close with them.
What I know now that I didn’t know then
You will pay for your education in this business one way or another. Classes, mentors, mastermind groups, all cost money, but they cost less than a bad deal. I paid with a bad deal.
Mastermind groups in particular can be genuinely useful, but they are also where people go looking for someone to take advantage of. Show up curious and skeptical at the same time. Use your own professionals. Your own attorney. Your own title company. Your own lender. When someone starts steering you toward their preferred vendors, ask yourself who those people are actually loyal to.
Lastly, record your lien—always. I didn’t do that and I paid for it. Don’t repeat that one.
Every flag I listed above was sitting right there in my deal with Lena. I flew past all of them. Some because I didn’t know what I was looking at. Some because I had already sent the wire and didn’t want to admit something seemed off. If this list helps even one person pump the brakes before they get to that point, it was worth writing.
Stay savvy, my friends.
