|Publié le 11 décembre 2017 à 8:15||commentaires (0)|
Notwithstanding cash is not in itself a crime, it could be difficult to invest in real estate with cash. In fact European legislations (luckily) require to each investor to justify the origin of the money.This is a good thing to avoid the international laundry of money coming from terrorism and from other illegal activities.
So how can justify your legal cash that you have amased in a bid to conduct a business or a real estate investment in France or elsewhere in Europe? How can you conduct a real estate investement with your legal cash?
5 steps have to be observed:
First step: start with little operations and open multiple bank's accounts in the country. One can do, for instance, many little deposits of around 1.000 euros. If you deposit 10.000 or 100.000 you can occasionaly do that justifying the origin of the money with a car or actions' sale (in case of a deposit of 10.000 euros) or of your flat sale (in case of a real estate sale). Each country in the EU has established a maximum amount of money to bring in travelling (i.e. 12.000 in France, 10.000 euros in Italy, etc.). Please notice that you have not to necessarily bring the money in your wallet or in your luggages. Money transfer is also a way to do that (commissions might vary). If you prefer bring money in your wallet...you have to declare to the Custom the amount that exceed the maximum amount. In that way you can constitute in a while a little base (2 or more accounts) from which you can start.
Second step: create a local company and provide it with funds. you can create a limited company in France providing just 20% of the capital decided at the moment of the creation. For instance you decide to create a company with 100.000 euros and you have to give to the bank a minimum of 20.000 euros at the moment of creation. You can get this amout partially from your personal banks (let say 2 times X6000 euros) and you can introduce 8.000 euros of additional cash to join 20.000 euros. You can little by little increase the capital with personal apport in cash. Your company works, so your banker will just be happy with the additional little funds deposited time to time. Please notice: it should be paid attention not to do big transfer or very repetitive transfers. From period to period (in a row of 6/12 months) you can safely deposit around 3/4.000 euros in cash per month. If you are associate or you own a restaurant, a taxi or other activities that can justify the cash you can double or multiply these amounts.
Third step: taken into acount of step 1 and 2, in a while (let say 6/12 months) you own 2 bank accounts provided with minimum 50.000 euros and a company provided with at least 50/70.000 euros, plus you still have cash to invest. With these basis you can already starting invest in real estate. Ideally you have to find a flat with a lot of works to do. You ask a loan to your bank and you provide as many cautions as they request. You invest in a bid to rent a flat with required works. This will facilitate the loan and will let you justify an additional revenu. A mortgage on the flat you are investing in, will be surely required by your bank and also a personal guarantee. If you find a good banker around 75% of the operation can be financed. So you can buy a flat of a value of around 200.000 euros + works.
Fourth step: You resell the flat (+works) and you get at least 250/300.000 euros. We imagine that you have financed works entirely paid by additional cash you own. So your appartement value is, after works, at least 270.000 euros. You can restart a bigger operation justifying to fiscal authorities and your bank the origin of the money. It is the sale of an appartment. With 270.000 euros on your banks' accounts you can hope get a bigger loan of around 400.000 euros.
Fifth steps: you can multiply these operations in many countries or many operations in France. You will manage an holding and each time you need to justify the cash, it will come from real estate sales done in France, Italy, Netherland, etc.
Remember: tracfin (track system to search and forbid money laundry) is particularly sensitive in some fields. Real estate is one of these sensitive fields. So prepare always all the documents needed to justify the origin of your money, because each european country is glad to have new business man investing as well as european countries luckily track and punish money coming from illegal activities.
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