There's a crackdown on money laundering via real estate transactions. FinCEN (Financial Crimes Enforcement Network) is making new reporting requirements that affect real estate investors across the country, including here in Indianapolis and all of Indiana.

FinCEN intention is to prevent illicit actors from using legal entities and trusts to anonymously launder illicit funds thru the US residential real estate

market. Their goal is to identify individuals involved in the “entities”, by requiring industry reporting of very specific information for members, managers, trustees, etc. of the entity.

The scope of the rule for reportable real estate transactions are as follows: 1. Property Type: Residential Real property

2. Financing: non-financed (cash or private non-licensed

lender)

3. Transferee: Buyer is a legal entity or trust

4. No exemption applies: not a result of transfer due to

death or divorce

There is no dollar amount threshold. All sales of Residential Real Property are reportable. This basically affects almost everyone in real estate to at least a certain degree.

Brett Snodgrass talks to James Schultz of Momentum Title Agency about what this means in practical terms for everyone investing in real estate in Indianapolis and really all of Indiana.

James Schultz is the Chairman of Government Affairs Committee for Indiana Land Title Association. James has spent a lot of time in Washington DC as this is a federal issue as well as state and local issue.

James has spent many hours talking with attorney generals, state senators, state representatives and so many other officials and professionals that are weighing in on what legislation, regulations and practice changes will look like in the coming days.

Many of these lawmakers and government regulators don't really understand what it's like to be an investor, nor do they understand how real estate investors, including wholesalers, positively impact the community.

Investors help communities when they have good motives and practices. But there are also bad actors out there who give wholesalers, realtors and investors a bad image.

This is such an important conversation to listen to. If you want to know what rule changes and new and developing regulations are and how they will impact your real estate business, then listen to this episode.

JAMES SCHULTZ - MOMENTUM TITLE AGENCY: https://momentumclosings.com/teams/location/?company=6&location=Indy%20Main