Swimming with the Sharks?!?

So are we as investors swimming with the sharks?

A local investor was telling me a story about someone being ripped off by a leader of the local investment group. Maybe not ripped off but definitely an unethical move on the leaders part.

A new investor told me that he had gone to this leader, instilled trust and purchased a house subject to from the leader. At the closing table, the investor was off about $400 (all of the cash flow) making this a negative cash flow property and the tenant moved out of the house. The newbie realized this wasnt a good deal and walked. He walked only after paying the leader about $9k.

I was so astounded by this information as I also feel the leader is a smart and seemingly ethical person. Obviously I dont know both sides of the story but I spoke to another investor and he told me he wasnt surprised. He told me to be careful of all of these people because I am swimming with sharks right now. Meaning that the people that I am dealing with do not care about me and will rip me off if given the opportunity.

I guess you just need to do what is best for yourself and believe in karma. What do you think about all of this, are most investors like this? I know I am not and never will be, I am not greedy and I want to help people as much as I want to become rich and povide for my family.