American Wealth Builder info needed

[Abhi Jain]

I recently talked to American Wealth Builders and they showed me some properties in Colorado. They say I need to buy the property in cash and are in the order of 40k and get a rental income of $600 plus. 

The thing is I am not able to trust them. They don't have any referrals. Their company itself doesn't have much web presence. The management company that they are working with also doesn't have any web presence. 

I am afraid if they are going to run away with the money. Or maybe perform for a year or two and then no performance... 

Any advice is appreciated.

[Brandon Schlichter]

You have to be very careful in Columbus. There are many companies selling 'deals' on $40k/home properties with $600-$700 rents but the vacancies are extraordinary. Essentially they are buying properties in bad areas for $10k, rehabbing them for another $10k while installing a tenant, and then doubling their investment.

If you're looking at properties in Franklin county (Where Columbus is) I would visit there and go through the areas you're looking at. In many  cases you can be on one side of the road and be in a great area (Near campus) and on the other side of the road have 10%-20%+ vacancies (Linden).