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šŸ›ļø Trust, Verify, and Protect Your Investments: Lessons from Giants and Fallen Kings

  • chelsie382
  • Aug 29
  • 2 min read

I used to think that if you had the right team, the right partners, and enough enthusiasm, you were set. But life, and the real estate game, taught me different. Trust is crucial… but trust without verification? That’s how empires crumble.

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The Salomon Brothers Wake-Up Call

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Let me take you back to the early ’90s. Salomon Brothers — a powerhouse on Wall Street, seemingly untouchable. But behind the scenes?

Unauthorized bids in U.S. Treasury auctions. A billion-dollar firm nearly toppled by greed and unchecked trust.

Warren Buffett himself had to step in, not because he wanted to, but because trust without verification almost wiped them off the map.

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Shohei Ohtani & the Cost of Blind Trust

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You’d think it only happens on Wall Street, right? But it’s everywhere. Look at Shohei Ohtani, one of baseball’s biggest stars. His interpreter, someone he trusted deeply, ended up embezzling $17 million. Why? Ohtani wasn’t paying attention. He trusted, but he didn’t verify.

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It’s the same in real estate. Deals are made, papers are signed, hands are shaken… but did you check? Did you verify?

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Common FTC Violations in Real Estate:

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You don’t hear about it in seminars, but the Federal Trade Commission (FTC) is always watching.

 • Misrepresentation: Ever seen a property that looked amazing online but was a nightmare in person?

 • Failure to Disclose: You find out after closing that the foundation is cracked.

 • Anticompetitive Practices: Price-fixing, bid-rigging — it’s real, and it’s costly.

 • Privacy Breaches: Mishandling client information can cost you more than just money.

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These are not just minor mistakes; they’re the kind that take people under.

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Trust, But Always Verify

Here’s the truth: The only thing riskier than trusting everyone is trusting no one. The solution? Due diligence.

 • Educate Yourself: Understand the legal landscape. Don’t just rely on your agent or broker.

 • Build the Right Team: Find partners who complement your weaknesses. If you’re not the expert, partner with one — but still verify.

 • Research Your Partners: You wouldn’t hand your wallet to a stranger. Why hand over your investments?

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I’m Learning, Too…

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I’m not here to claim I have it all figured out. I’m on this path just like you — learning, growing, failing, and getting back up. That’s why I’m excited to share that my book is launching later this year. It’s part of my journey to learn more, do better, and make sure the crabs in the bucket don’t pull me back.

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Have You Ever Been Burned?

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Have you ever trusted the wrong person? Missed something in the fine print? What did you learn from it? Share your story — I want to hear it. Let’s grow stronger together.

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ree

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