Jose Castillo MBA

🚨 NEW FEDERAL RULE FOR CASH/HARD MONEY PROPERTY PURCHASES 🚨 (yep, another 😑)

•(Summary for the non-reader: If an LLC or a Trust (Trust) purchases a home without using a bank loan (where the bank is already investigating), now Attorneys, and Title Companies are required by Federal Law to report who the actual owners behind that entity are. )
•
Now if: Starting March 1, 2026, if you buy a home with:

✔️ LLC
✔️ Corporation
✔️ Trust
✔️ Purchases In CASH, Hard Money or Private Financing.

👉 You have to report to FinCEN (Financial Crimes Enforcement Network)

🧾 What INFORMATION does FinCEN require?

• Legal name of the purchasing entity
• Beneficial Owners (real owners)
•Address
• Purchase price
• Property address
• Closing date
•Type of Entity
•Who paid for it

Something like the BOI but in every Purchase.

🚫 The end of anonymity in cash purchases of foreign investors and individuals who used LLCs or trusts to keep their assets private, for security or as an investment strategy, but at the same time money laundering)

💲Attorneys and title companies are now official "whistleblowers", so there will surely be extra costs in these closings.

💭 As if they don't already face enough challenges and procedures when investing...

-The question is: How much does it affect or benefit? Will it help clean up the market or is it too much surveillance and procedures for investors?

Source: fincen. gov

🚨JUST IN: Seriously delinquent rates in multifamily mortgages at Freddie Mac are up to 0.48%, the highest in at least 21 years.