3 ms·

> one of the big causes of housing inflation is using it to launder money I'd love a link backing this bold assertion.

wmf 3y ago
You'll find plenty or none depending on your desired level of detail. After reading about this topic for years I still don't understand how to use real estate for money laundering.
- bombcar 3y ago
  In very specific cases it can be used to avoid certain countries' laws about exporting cash/value. But that's not going to be a major source of real estate transactional volume.
  - phkahler 3y ago
    >> https://news.ycombinator.com/item?id=39277767 https://news.ycombinator.com/item?id=39277767 Except in parts of Canada. This just came across HN earlier this week: https://news.ycombinator.com/item?id=39277767 https://news.ycombinator.com/item?id=39277767
    - bombcar 3y ago
      That's just liar-loans, not money laundering.
- Fin_Code 3y ago
  This is actually quite easy. Lookup how to purchase a home with cash (its easy). The house is then assigned to an owning entity to become part of a portfolio. Then after a given time based on risk you can sell to generate revenue. Then disburse to other entities that lead back to the person that dropped in the cash. The wash is completed. Where else could you drop large quantities of cash then translate that to clean money?
  - wmf 3y ago
    It's not suspicious to sell property that you could not afford to buy in the first place? What do you report as the cost basis? Zero?
Fin_Code 3y ago
This is actually quite easy. Lookup how to purchase a home with cash (its easy). The house is then assigned to an owning entity to become part of a portfolio. Then after a given time based on risk you can sell to generate revenue. Then disburse to other entities that lead back to the person that dropped in the cash. The wash is completed. Where else could you drop large quantities of cash then translate that to clean money?
- psychlops 3y ago
  Pretty sure this fails at step one.

wmf 3y ago

You'll find plenty or none depending on your desired level of detail. After reading about this topic for years I still don't understand how to use real estate for money laundering.

bombcar 3y ago
In very specific cases it can be used to avoid certain countries' laws about exporting cash/value. But that's not going to be a major source of real estate transactional volume.
- phkahler 3y ago
  >> https://news.ycombinator.com/item?id=39277767 https://news.ycombinator.com/item?id=39277767 Except in parts of Canada. This just came across HN earlier this week: https://news.ycombinator.com/item?id=39277767 https://news.ycombinator.com/item?id=39277767
  - bombcar 3y ago
    That's just liar-loans, not money laundering.
Fin_Code 3y ago
This is actually quite easy. Lookup how to purchase a home with cash (its easy). The house is then assigned to an owning entity to become part of a portfolio. Then after a given time based on risk you can sell to generate revenue. Then disburse to other entities that lead back to the person that dropped in the cash. The wash is completed. Where else could you drop large quantities of cash then translate that to clean money?
- wmf 3y ago
  It's not suspicious to sell property that you could not afford to buy in the first place? What do you report as the cost basis? Zero?

Fin_Code 3y ago

This is actually quite easy. Lookup how to purchase a home with cash (its easy). The house is then assigned to an owning entity to become part of a portfolio. Then after a given time based on risk you can sell to generate revenue. Then disburse to other entities that lead back to the person that dropped in the cash. The wash is completed. Where else could you drop large quantities of cash then translate that to clean money?

psychlops 3y ago
Pretty sure this fails at step one.