seller asks for cash deal with contract
I am trying to buy a self-storage building. The asking price was $179,900, I worked it down to $163,500. The seller wants to set the contract sale price for $150,000 and wants $13,500 cash on the side. This will help him with his capital gains. He wants $5,000 up front, and $8,500 at closing. Are there any risks (legal or otherwise) with this deal?
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Jon Holdman
#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
He's asking you to assist in committing tax evasion. I.E., "help him with his capital gains" by handing over $13,500 in cash. I'm guessing he really want cash as in a wad of Franklins. Taking $13,500 in cash from your bank will trigger your bank to generate a Currency Transaction Report. Yeah, there are risks. Jail time risks.