As real estate investors.
We all know that when we sell property or buy property, it leaves a trail.
But the question is, who is following that trail?
Would it surprise you to learn or not that the federal government
is tracking your real estate purchases?
If so, then you're going to want to watch this video.
Okay, let's get started.
So here's the deal.
The federal government is quietly tracking real estate purchasers of real estate.
And this has been going on for several years.
The thing about this is that it was supposed to be a small program
that was only going to be implemented for a short period of time.
But as government programs go, they keep expanding it
and they keep extending the program.
Now, what am I talking about here?
What I'm saying is
that when you buy real estate, if you're buying it a certain way,
all of your private information is being turned over to the federal government
and collected in a database.
Why are they doing this?
Well, they're doing it under the guise of combating money laundering.
That is, if you're buying property,
they say you must be trying to launder money.
And it goes hand in hand with what they're trying to do with the the CTA Corporate
Transparency Act, which I have videos on my channel describing this.
It goes into effect at the beginning of next year.
So these are things that I think are important
as someone who doesn't want my information freely shared.
Well, I'm going to show you what's going on
and how you can prevent the government from tracking your real estate purchases.
So let's go over here and show you what I'm getting at here.
So here's what we have.
FinCEN renews and expands real estate, geographic targeting orders,
and this is what's going on.
They are taking these targeting orders.
They're expanding it, meaning they're looking at certain locations,
cities and counties,
and they're seeing any real estate purchases that meet certain criteria.
In these areas, I'll show them to you.
Those areas you need to report on the people who are buying the property.
So what areas are we referring to here?
Here are the cities
that you may be buying property in, or even counties where you're
buying real estate that could get you on the government's list.
Now, how do we end up on the government's list will
or breaks down into a few different factors.
Number one,
you're probably you have to be buying in a limited liability company
or some form of business entity that's registered with a secretary of state.
So as real estate investors,
we know that if we can close in an entity, that is a preferable method.
So if I had the opportunity to close
or buy property in name of an LLC, I'm going to take that opportunity.
But now I've got to be careful because I don't want my information shared
with the federal government.
Second thing is, as I stated, select real estate markets.
We already cover that.
The other thing is that the price of the property has to be over
$300,000 and there's no debt used in the transaction.
So if you're one that's going to finance your properties, it doesn't matter.
But if you're buying for cash and the price is over
$300,000, well, then they're going to be tracking you
and they look at you when they say buying for cash, how is it
paid for money, orders, wire transfers, that that's what falls into this.
Now, people's oftentimes will tell me when I brought this up in the past,
I'll say, well,
I don't buy for cash or I don't foresee that
you may not foresee it, but it can happen.
I mean, you could buy property in your IRA that's going to be acquisition for cash.
If you're using a self-directed IRA, if you're borrowing money from someone
right to close on the deal, then you're going to give them
a first deed of trust after closing or something like that.
That's a cash purchase.
So we got to be careful about this.
We want to avoid it because here's what they collect on you.
They want to know everything about your entity, number one.
So you have to turn all that information over.
Then they want to know everything about you
that if you own the entity, if you're a member, you're a manager,
they want to have your driver's license,
they want to have your passport information.
They want your business, your home address.
They want to know how much you paid, how, where the money came from.
All of that, all of the details about the transaction
so they can look to see whether or not you may be
part of a legal money laundering with purchasing this real estate.
So brings me to my final point.
How do we avoid having the government collect
this type of information on us when we buy property?
Well, the key here is if you want to buy property anonymously now in those markets
and it's over $300,000 in cash, do not use business entities.
Okay.
Now, I've said that and I know it runs contrary
to what we're talking about with asset protection.
So you could buy in your own name if you wanted to,
and then transferred into an LLC and you're not going to fall under this.
Or you could do this if you want the privacy set up a land trust.
Simple land trusts are not covered under this order.
So if you set up a land trust, you use a nominee trustee or use a Wyoming
LLC as your trustee.
It's going to give you privacy, number one.
But number two, you're not going to have to report to the federal government.
None of your information is going to get submitted.
So as a real estate investor, this really helps me determine
where how I'm going to close on certain types of deals in certain
markets, as I've stated many times when you watch my videos.
Real estate investing asset protection, tax planning, it's not a one size
fits all.
So you have to look at what you're doing, where you're doing it,
and then make the determination is what is the appropriate entity.
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