There are some real estate investors that are secret because they use cash to buy their properties. They do this to keep it off the radar. However, the federal government will now be tracking these secret real estate investors because they feel that illicit money is going from hand to hand during these secret property transactions. Because of this, the government now requires the names of everyone who pays with cash to make sure they are doing it legally. Or so they say, right?
Areas They Are Targeting and Tracking
So, what areas are they targeting and tracking currently? The first place they started targeting and tracking was Manhattan in New York. However, they are also tracking Miami Dade County in Florida. Manhattan is where this illegal money handling started. Although that may be the case, they will track everyone who pays for a property when buying real estate, in cash. These cash purchases protect the buyer from letting anyone know who they are. Now, they will not be able to shield their identity since the government is getting involved.
Is Money Laundering Going on in the Real Estate Industry?
The federal government will be investigating to determine whether or not there is money laundering going on in the real estate industry. Since cash is being used, no one knows the identity of the buyer. However, that has changed because they require the names of everyone who uses cash so they can keep their investigation going. The Treasury Department and the federal government will be using as many resources as they can to investigate this further.
Secret Real Estate Buyers Using LLCs and Shell Companies to Hide
These so-called secret real estate buyers are using Limited Liability Companies and what they call Shell Companies, to hide the fact that they are buying luxury real estate properties with cash. According to Spoiled NYC, the first high-end luxury apartment was sold through these so-called Shell companies for $18.2 Million and used the name “LLC, 432 Parkview.” However, they will no longer be allowed to do this since they are now being targeted and tracked by both the Treasury Department and the federal government.
What do you think about these secret real estate buyers using cash for their properties to hide their identity? Now that the Treasury Department and the federal government are involved investigating, and requiring names of cash purchasers, if there is money laundering going on, it will now be put to a stop.