Real Estate Transaction Apps to Avoid, According to Andrew Shader
Whether you’re handling a monthly rent payment, a security deposit, or a hefty sum related to a property purchase, many different types of real estate deals involve money changing hands. According to Andrew Shader, safe money transfer should always be a top priority whether you’re the sender or the receiver.
These days, there are so many different money transfer platforms to use, most of which are designed for peer-to-peer transactions.
Because these platforms are primarily meant for casual money transfers between friends and family members and not necessarily for business transactions, their security measures often leave something to be desired.
Additionally, these apps usually involve some additional fee if you opt for immediate transfer of funds into your bank account, which can pose an issue for the timeliness of certain real estate transactions.
If any type of real estate transaction is in your future, you may want to steer clear of these apps, especially if you’ll be sending money to (or receiving money from) someone you don’t know very well.
Venmo is a great app for casual transfers of small sums between contacts, but it may not be the best choice for large sums. The security of Venmo payments is minimal, which means you may struggle to see any of your money back if you accidentally send it to the wrong person or get scammed in any way.
The app is not insured by the FDIC, so the company has no obligation to replace any money lost.
Unlike Venmo, Cash App is insured by the FDIC, which gives users some protection in the event of a fraudulent charge, stolen funds, or incorrectly sent funds. However, the app can be buggy, leading to users randomly losing funds, having funds frozen, or simply being unable to access their accounts.
Though Zelle may seem to be more credible as it’s installed within several banking apps, it doesn’t actually offer any additional protections beyond those of Venmo, Cash App, or PayPal. If you accidentally send money to someone you don’t know or didn’t mean to send money to, you’re unlikely to ever see that money returned.
Of the casual money transaction apps, PayPal is usually regarded as one of the best and most trustworthy for its user-friendly interface, its low transfer fees, and the fact that it’s built right into the checkout pages of many online storefronts. However, PayPal scams are not uncommon, and user protections are minimal.
So How Should You Transfer Money in Real Estate Transactions?
Though online money transfer apps are the most convenient way to complete real estate transactions, you can’t get much safer than a handwritten check or money order. However, there are many specialized rent payment platforms that are much more reliable than their peer-to-peer counterparts if you’re a tenant or landlord.
Who Is Andrew Shader?
Based in Fort Lauderdale, Andrew Shader is an entrepreneur turned real estate developer and investor. His unique strategy involves boosting property value to create ideal outcomes for his clients.