Bay Area Real Estate Fraud - Be Careful!

I’ve got a real estate story for you that honestly sounds like it belongs in a Netflix documentary, but it’s happening right here in the Bay Area. 

There’s this guy, Kenneth Mattson, a so-called developer and investor in the Sonoma area. Fancies himself a bigshot but turns out he's the worst kind of person!  Big Kenneth was just federally indicted for allegedly running a $46 million Ponzi scheme over the course of 17 years. Seventeen freaking years!!! According to the charges, he scammed nearly 200 people, most of them retirees, by promising safe, profitable real estate investments. In reality, he was using new investors’ money to pay off old ones, while buying up properties for himself, vintage cars, fancy vacations and basically living large off other people’s savings. What a dirtbag.

Obviously, due process and all that jazz, but I can't stand stories like this. Preying on the elderly and uninformed hits a chord with me. They just let Big Kenny out on bail too, $4mill to post bail. Which I'm also disappointed in. 

People thought they were investing in real property and some even believed their names were on deeds. But a lot of those deeds were never even recorded. It’s pretty outrageous, and honestly, it gives the industry a bad name and personally gives me the heebie jeebies!

The reason I’m sharing this isn’t to scare anyone, but it’s a reminder that not all real estate professionals are created equal, and you should never just take someone’s word for it, even if they sound polished or successful. If something feels too good to be true, or if someone’s vague about how things are structured, that’s a red flag.

Any time you’re putting money into real estate, whether it’s a flip, a rental, or just a quick partnership, make sure everything is legit: paperwork, title, transparency, the whole thing. Hire a lawyer! And if you’re ever unsure or want a second opinion, I’m always here to help. I’d much rather you run something by me casually than find out too late that something was off.

Real estate is still one of the best ways to build long-term wealth, but like anything worthwhile, it needs to be done smartly and with people you can trust.

Be safe out there!  Stay hydrated and wear your sunscreen this week! 

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