People run these scams because people like yourself enable them.

@Miguel TorresOuch, your “friend” is scamming you.

I signed addendum to transfer deposit to new title but it was a scam- intending to extend contract- he told me he was worried about losing money, disappointing family, etc.

I never trust tenants to give me good info on previous LL's after I escaped a scam someone tried to run on me.), etc.

That website, and all the linked documents, are written like so many others whose operators are from outside the US (and have poor English language skills) and typically perpetuate loan scams on unsuspecting borrowers.Their “Terms & Conditions” document for the loan is a joke.And I can guarantee you that no real “private lender” is loaning money at what they’re advertising (i.e. $50k up to $800M @ 5% interest for 35 years).

I sent them the door code a few days before their stay.They trusted me not to scam them and keep their money and I trust them to take care of the house and leave at the end of their tournament.

There is also likely 10 horror stories that is not shared for every 1 that is shared.I live in New York City and I invested in two long-distance cities successfully - Allentown, PA and Jacksonville, FL.I would like to share the tips that I took to become successful while avoiding getting scammed or taken advantage of.

My questions are, is this a scam?

Lastly, you might benefit from reading this: Tips for Avoiding a Scam on BiggerPockets. 

Sometimes it is the squatter who fakes the whole lease situation and other times it is someone posing as a Property Manager who takes the "tenant's" security deposit and rent under a scam.