Updated over 7 years ago on . Most recent reply
Investor wants to Invest
Hi Everyone,
A family member wants to invest money with me on a flip property. The only thing is he has only cash to invest, he does not trust banks. Is there anything I have to worry about if accepting cash? It will be around $50,000.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
By cash I think you mean piles of bills. You cannot easily accept a briefcase full of cash. You will have even more difficulty returning his investment and returns in cash. Depositing $50K in cash, which WILL have to happen at some point in this transaction will require the bank to do a "suspicious transaction report". They are guarding against money laundering. You, he, or the both of you will be required to explain the source of the cash. Shouldn't be a problem as long as the money can be explained. OTOH, if there is not a good explanation, then its possible you might really be involved in money laundering. You certainly don't want that.