Everything you need to know about Money Laundering in the Real Estate

Money laundering is the process of investing a large amount of money obtained illegally into a legitimate source. Though there are many ways of money laundering, the most attractive is real estate. And why not? It comes with several benefits, such as property can be purchased with cash, ownership can be concealed, and much more.

 

Some commonly used money laundering techniques in real estate are:

 

1. Use of third parties

 

Criminals invest in real estate using a third party or family member (without a criminal record) as the owner. Offenders purchase property on behalf of a third party or deposit funds into their account to complete the purchase. In this way, criminals can not get directly mentioned in the deal.

 

2. Manipulation of property values

 

Criminals work with real estate agents to underestimate or exaggerate a property value.

 

Undervaluation

 

Proposing the contract sales value of property lower than its actual price is undervaluation. The difference between the price is paid secretly between the purchaser and the vendor. Through this, the buyer (criminal) claims that the contract amount was paid by his financial means. Many people use this method to save stamp duty. You can keep yourself safe by buying from the best Commercial Realtor in Surrey from Jas Oberoi Group.

 

Overvaluation

 

Evaluating the price of a property lower than its actual price is called overvaluation. Offenders overvalue property to get larger loans from a bank.

 

Increase rates

 

To confuse the audit trail, criminals can resell the properties in a row for higher values. They generally sell the property to a known third party or a company controlled by them. Criminals do this to show legitimate profits while maintaining total control over the sold property.

 

 

3. Use of loans and mortgages

 

Loans and mortgages provide another way for money laundering. In this, criminals give lump cash repayments to mix illicit funds with legitimate money.

 

 

4. Using rental income

 

Criminals can rent out a property and give funds to tenants to cover the rental payments. In this way- they adjust their money backdoor.

 

They purchase these properties in the name of a third party name and provide rent to the leaser. This way, they disguise their illegal funds.

5. Purchasing property for illegal activities

 

It doesn’t matter from where the offenders buy property- they start doing criminal activities as soon as they enter the property, such as drugs production, etc. The revenue from this illegal activity might be used to purchase additional real estate properties.

 

6. Renovation in the property

 

Offenders can use illegal means to renovate the property, which increases the property value. And then sell it at a higher price.

 

7. Structuring money in the banks

 

Offenders deposit money below the reporting threshold at different banks to avoid triggering transactions. It will help them obtain bank cheques to buy real estate properties.

 

 

Warning signs in a real estate transaction

 

Though all the above money laundering methods are likely to continue in the real estate sector, some warning signs can help you identify money laundering through the property market.

 

1. Someone who is hesitant to share information

 

If the customer/individual does not agree to share information, documents, or data you require is a big red flag. And you should avoid doing business with him.

 

2. Someone who pays only through cash

 

You might have remembered how you paid when you buy, your first property from the best commercial realtor in South Surrey - Read more. Obviously, you didn’t pay through cash. Cash-only payment is a sign of money laundering. You should avoid taking all money through cash for your property.

 

3. Someone offers your large cash lease payments

 

You own a commercial property, and someone pays the lease in huge cash beyond market rates. In this scenario, the person making the rent payments has a large amount of money. It can be a clear sign of a money laundering case. Do not rent out your property to anyone trying to invest money in real estate from criminal activity.

 

Conclusion

 

Before selling/purchasing your property, you should make yourself fully understand the warning signs of money laundering in real estate. It will solve the possible troubles that you will get in the future.

Hire best Commercial Realtor in south Surrey at your ease

At Jas Oberoi Real Estate we do it.

Who knows real estate? Who knows how to put something into action? Who knows the intricacies, the legal complexities, the ups and downs of the market? We did.

At Jas Oberoi, we connect people to people, people to places, and places to people. But the most important relationship we will ever have been, the relationship we have with you.

What properties does Jas Oberoi have?

Jas Oberoi Commercial Realtor offers a long list of services; however, what we offer income-generating property owners is "Peace of Mind". That means we've designed our management process so you can focus on the things you want to focus on while we leave the rest to us. We treat our role as property managers like any other property owner. This means we go beyond the standard accounting and support services to provide proactive troubleshooting and real tenant care.

Check out our Best Commercial Realtor in south Surrey below.

We offer all necessary real estates services like housing areas, project marketing, and asset management. Although project marketing plays a great role because it provides residential and commercial property developers with a successful selling structure for purchasers. This can be done by asset management as they concentrated on a portfolio of properties rather than focusing on a single property. For this, Our team is there for you at every step of buying or selling. Together we will accomplish your homeownership aims.

How do our agents help buyers?

 A lot is going on in buying a home and the process will go very smoothly, you'll get the best price and get the right home offer. Whether you are buying your first or fifth home, representing a professional agent is essential to ensure you don't miss out on the right home, get the best deal (without overpaying) and reduce stress.

• Representation

A knowledgeable agent with experience, training and skills will address your interests.

• Price negotiation and terms

Negotiating offers, counteroffers, and legal agreements? You require an expert by your side.

• Unbiased advice

Our agent can help you make better decisions based on facts and experience, not emotions.

• Local expertise

Your local agent who works in your area knows the market and can bring you a profit.

• Regulatory Manual

Purchasing and selling houses is strictly controlled, our expertise can help you evade costly mistakes.

• Solve the problem

An experienced agent will help you troubleshoot problems that arise and prevent problems from occurring in the first place.

• Market analysis

When buying a home, it is important to know how much the house costs. You require to understand where you are.

• All documents

When buying a house there is a lot of paperwork, it is important to have a trustworthy advisor by your side who will help you keep track of things.

• Access to advertising

Our broker can help you see which homes are available if they fit your schedule.

Why hire us?

Jas Oberoi Commercial realtor in South Surrey is one of the first commercial brokerage firms to combine real estate services with a corporate brokerage firm. This gives customers access to advertisements that would otherwise not be available in the marketplace. It also grants an exclusive possibility to sell commercial and business real estate at the same time.

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Key points to make a commercial property for sale in Surrey

When people simply start in the field of real estate investing, they often start by purchasing and selling family homes, which are the most versatile type of real estate property. Though, purchasing and selling commercial properties can lead to considerably more effective profits for those who are ready to go out on a bough and take a chance in this market. Whether you are new in real estate selling or have already been doing this for quite some time, there are some vital factors to take into consideration to maximize profits when it comes to making commercial properties for sale in Surrey. Take a look at the following rules of listing and marketing process to improve the possibilities of a successful sale:  

 

   Paying to advertise is a significant part of the marketing choice when it comes to preparing a commercial property for sale in today's market. Usually, proprietors like to cut difficulties and expenses when it comes to selling a property. But the fact is that alternatives in vendor-paid advertising are ineffective and will also create some inquiries. Therefore, the estate agent should suggest plans of vendor-paid advertising for every listing. To assist the client further, the estate agent can give two or three vendor-paid marketing options that provide the client with a budgetary decision.

 

     An independent listing is indeed the unique way to place a commercial property on the market if the owner of the property is sincerely involved in the sale. The independent listing method allows the proprietor to focus on the potential customers for a fixed period. All property reviews, discussions, and interactions can be precisely created to bring about the most favorable outcome in the property sale for the customer.

           

    Happy clients always return and keeping them satisfied will increase the chances of earning a profit. Because commercial clients always look to grow, it is important to acknowledge their needs. Moreover, positive word-of-mouth promotion never disturbs anyone.

 

The best method of sale should be well chosen to maximize the profit, and certainly, help the client with their ultimate property transfer purposes. In any property market, the processes of sale will differ depending on the subject to the property standard, the target market, and the levels of inquiry.

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How to Find the Right Commercial Property For Your Business

Choosing the most suitable commercial property can have various advantages for small, medium and large businesses. The property makes the largest expenses in business records, hence, getting the right deal is essential. When business profit matches your expectations, finding a place that provides your business with growth becomes essential. 

On the other hand, many businesses get capital infusions that are expected on improving the business. In this situation, the close step is finding a suitable area and office space. Today, with the increasing demand of several businesses, you can find several commercial properties for sale in Surrey. 

If you want to have a great experience in estate purchase, you must look for a licensed and experienced estate agent so that you can obtain the best deal. The following tips can help you to find the right commercial property for your business:

• In this difficult economic time, you must review all the aspects when looking to purchase a commercial property so that you can make the best deal. When planning to buy a commercial property, you need to make a reasonable and thoughtful decision. Nevertheless, many businesses neglect this viewpoint which can affect their business in future. A professional agent can help you by giving and explaining different commercial property options available in the market.

• Whether you are involved in a small or large business, you should take a look at commercial property listings considerably. These listings assist business persons to choose the most suitable area and place for their company. You may find many commercial estate agents who are experts in their profession and assist you in making the right deal. Professional commercial property agents can help you in determining the real cost of a particular commercial property in the open market.

• When you are looking for a suitable office space for sale in Surrey, location is one of the crucial factors. You need to determine which location would be most convenient and comfortable for both your staff and clients. The area of your office can grow or ruin your business as well as it will have a notable impact on your staff and clients, so choose thoroughly.

• Another most important step is to brief a commercial property agent. They will require a fair understanding of your business space specifications, including facilities, type and size of the office, your budget and timeframe. This detail will give a structure to your agent to evaluate the market and come up with suitable commercial property options for you to observe.