[quote=GotFear]Wow, some of you folks responding on this thread has some serious Chinese xenophobia going on….
One of you even went as far as suggesting the only ones buying from China must be corrupt government officials….WTF? Sounds totally like a redneck baffoon to say…
I’m surprised more people haven’t thought that maybe the reason someone people are buying homes with cash (irrespective of race, gender,etc) is, oh I don’t know, maybe they earned it and/or have more wealth than you do?
Just because someone has the financial ability to do something you can’t do doesn’t mean whatever they did was illegal or “corrupt”, Making such a suggestion is nothing more than a personal reflection of your own fear, jealousy, etc of whatever financial shortcomings you apparently think you have.[/quote]
Whenever there are huge demographic changes in the RE transactions in a given geography, it is often (but not always!) a sign that there might be some money laundering going on. It’s not uncommon at all. Here are some of the flags:
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Overview
The crime of money laundering continues to be a growing area of concern in the United States. Therefore, law enforcement agencies and the financial sector devote considerable time and resources to combatting these illegal financial activities. However, many non-financial businesses and professions are also vulnerable to potential money laundering schemes…
…Customer Risk:
Location of property in relation to the buyer.
Is there a large unexplained geographic distance between the two?
Unusual involvement of third parties. Titling a residential property in the name of third party; for example, a friend, relative, business associate, or lawyer. Use of legal entities (corporations, LLCs or partnerships) that obscure the identity of the person who owns or controls them without a legitimate business explanation.
High-ranking foreign political officials or their family members.
Transaction Risk:
Under or over-valued properties.
For example, is the property owner selling the property for significantly less than the purchase price?
Does the seller seem disinterested in obtaining a better price? Use of large amounts of cash.
Buyer brings actual cash to the closing.
The purchase of a property without a mortgage, where it does not match the characteristics of the buyer.
While rules and regulations governing the financial sector are designed to detect situations where large amounts of cash are being introduced, real estate agents should keep this factor in mind when evaluating whether a transaction seems suspicious.
Property purchases inconsistent with the individual’s occupation or income.
Is the property being purchased significantly beyond the purchaser’s means?
Immediate resale of the property.
Especially if the sale entails a significant increase or decrease in the price compared to the prior purchase price, without a reasonable explanation.
Speed of transaction (without reasonable explanation).
Unusual source of funding.
Example: use of third-party funds to purchase a property where it doesn’t make sense, i.e. third-party is not a parent, sibling, etc., use several different sources of funds without logical explanation, funding coming from a business but property not being held in business’ name, or purchase of property doesn’t match the business’ purpose.
Purchases being made without viewing the property, no interest in the characteristics of the property.
