Companies that do register their securities must file annual reports with securities regulators. Be suspicious of sellers that give the impression that only a few shares of stocks or partnership units are left. Many try to convince you to wire or send money overnight, but remember that once you give money, it may be gone forever. These stories can be completely irrelevant to your investment purpose. Get the track record of the company you are considering investing in and the people promoting the investment from the Better Business Bureau or the securities regulators in your state.
Legitimate companies account for investors' money at all times.
Request written proof from the company about the amount of money going to the actual purchase of the investment opportunity and how much is going to commissions, marking costs, and promoters profits. The more expenses, the fewer earnings for you. 5. Get an independent appraisal of the investment. Keep in mind that the company's appraisal may be false. Try to speak to previous owners or investors of the company.