4 ms·

This is deeply needed, one of the big causes of housing inflation is using it to launder money. Higher housing costs are better because you can launder more. It

This is deeply needed, one of the big causes of housing inflation is using it to launder money. Higher housing costs are better because you can launder more. Its like when rich people can't have a money trail for some shady activity so they sell art to each other for a wild amount. This will require all owners to be named instead of a nameless llc. Should help curb the process.

max_ 3y ago
Can't some lawyer just be used as a proxy for holding the real estate?
- singleshot_ 3y ago
  This is what a trust is, more or less. Legal title, beneficial ownership, and control can all be vested in different entities.
psychlops 3y ago
> 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.
jgilias 3y ago
Housing inflation everywhere is mostly due to the stock of housing growing a lot slower (or not at all) compared to the growth of broad money supply. If there’s more of the thing that you use to account for stuff, but stuff doesn’t become more, the number in your units of account goes up. Edit: Apart from that, there’s monetary premium put on real estate, as people effectively use it to short the currency by buying it with debt.

max_ 3y ago

Can't some lawyer just be used as a proxy for holding the real estate?

singleshot_ 3y ago
This is what a trust is, more or less. Legal title, beneficial ownership, and control can all be vested in different entities.

psychlops 3y ago

> 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.

jgilias 3y ago

Housing inflation everywhere is mostly due to the stock of housing growing a lot slower (or not at all) compared to the growth of broad money supply. If there’s more of the thing that you use to account for stuff, but stuff doesn’t become more, the number in your units of account goes up. Edit: Apart from that, there’s monetary premium put on real estate, as people effectively use it to short the currency by buying it with debt.