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Author Topic: Big Money Flocking Into The USA. Here Come The Rich Foreigners... Back to Topics
SemiSteve

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Tampa

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Message Posted: Oct 31, 2013 6:20:36 PM

"This remarkable boom in high-end real estate has been driven by foreign money, with "buyers coming from all over the world but with the highest concentration from Venezuela, Argentina, Brazil and Russia," according to the website for Miami Condo Investments, which offers high-end properties for sale. Twenty-six percent of real estate sales to foreigners in the United States occur in Florida, more than anywhere else in the country and twice as high as second-place California, according to the National Association of Realtors. Seventy-six percent of condo buyers in Miami don't take out mortgages but pay cash, versus a national average of 32 percent for cash sales for all properties.

Jorge Pérez, a developer known as the "Condo King," told a local real estate conference earlier this year that all these foreign buyers make Miami the only city in America where the cash model works. "It's a very local market," he said. "It's for people who are used to paying cash for most of their second homes."

"Offshore entities are an especially bright red flag, but domestic LLCs offer a simple means of obscuring property ownership from tax and law enforcement agencies or an aggrieved business partner or spouse."

"Democratic Senator Carl Levin of Michigan has long tried to address rampant money laundering by passing a bill that would require companies registered in the United States to reveal their true owners, but it has been blocked by the US Chamber of Commerce, the American Bar Association, and lobbyists for states including Delaware and, notably, Florida. Meanwhile, Florida's political leaders have been spearheading the fight against a new Treasury Department rule mandating that foreign banks tell the IRS about accounts held by US taxpayers — and which would, reciprocally, require US banks to share the same information with foreign governments. Not surprisingly, Florida banks and realtors don’t like the idea of more sunlight on their lucrative dealings with foreigners. "There is a huge amount of dirty money flowing into Miami that's disguised as investment," said Jack Blum, a former congressional investigator and Washington attorney specializing in money-laundering cases. "The local business community sees any threat to that as a threat to the city's lifeblood."

Born in Argentina to Cuban parents, Pérez faced financial ruin during the last housing bubble. By 2010, his Related Group had lost four of its seven Florida developments to foreclosure and was desperately trying to reschedule $1.5 billion in debt. Now he is hawking a new slate of luxury projects, including One Ocean at the tip of South Beach and the SLS Hotel, a brand whose flagship property is in Beverly Hills."

"And so it goes in Miami, where the welcome mat for the globe's most pampered people is always out. Today, even as much of Florida has yet to pull out of the last real estate quagmire, at least 170 new condo towers are planned for Miami, many by the same developers behind projects that went bust during the last bubble. The Real Deal, a South Florida real estate publication, recently reported that a new influx of money from the Far East was further buoying the market and that the Ritz-Carlton Residences Palm Beach had already completed several deals with Chinese buyers."

The Nation: Miami: Where Luxury Real Estate Meets Dirty Money
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SemiSteve
Champion Author Tampa

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Message Posted: Dec 5, 2013 11:16:57 AM

Either Obama has not turned the USA into a socialist country or if he has it hasn't hurt us.
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SemiSteve
Champion Author Tampa

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Message Posted: Dec 3, 2013 4:16:14 PM

mudtoe has been saying that as our nation turns socialist big money would be leaving. And here it is coming in.

Guess that means Obama has not turned the USA socialist after all.
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 6, 2013 9:21:54 AM

What you remember is your impression of what people say, AC. We all do that. The trick is that any time a story passes from one person to another there is degradation of quality. THERE's the human nature angle...

You left out the part about when I said that kind of big money coming out of El Salvador (such a lot of money for such a small poor country) was highly suspect of being dirty. And in that case the linked article showed some rather profusely smoking guns.

You also left out the following conversaiton we had at the time. As I recall you fixated on that one perception despite being told repeatedly by me that I believe it is possible to make big money without illegal means. You believed what you wanted to. And again. We all do that to some degree. The dreaded human nature thingy.
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sgm4law
Champion Author Maryland

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Message Posted: Nov 6, 2013 8:14:50 AM

SS: "Got anything to back up what you say?"

<Human nature and history.>

LOL. I will have to use that some time when my position seems obvious to me and I don't want to bother citing anything specific in support. Cute.

[Edited by: sgm4law at 11/6/2013 8:14:50 AM EST]
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AC-302
Champion Author Los Angeles

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Message Posted: Nov 6, 2013 12:57:57 AM

SemiSteve - despite your protestations, you were the one who asserted that Romeny's campaign and his business were funded by El Salvadoran Death Squad money. And when queried further, you yourself said that, in effect, the only way that money of that magnitude could be made was through dishonest and illegal means. Your own statements call into question your motives. Despite anything, people don't forget what you say. We're not dumb.
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mudtoe
Champion Author Cincinnati

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Message Posted: Nov 5, 2013 11:03:24 PM

SS: "Got anything to back up what you say?"


Human nature and history.


mudtoe
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 5, 2013 9:47:26 PM

mudtoe, I have shown that there is 1% money flowing into the USA. You have failed to show that it is leaving; as you claim. All you have done is fling a few adjectives around. Nice diversion but,,,

Got anything to back up what you say?
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 5, 2013 6:59:25 AM

SMH.

In order for me to do something 'once again', I would have to have orginally done it in the first place. And then I would have to do it an additional time. Since neither of those has -ever- occurred, then it must be another bizarre shameless and futile attempt to put words in my mouth.

It really is amazing some of the fabrications attributed to me around here.

You know what?

Read the characters I am typing.

That's what I said.

If I didn't type it?

I didn't SAY IT.

Sad I have to explain that.

Even sadder that I have to keep doing so.
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AC-302
Champion Author Los Angeles

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Message Posted: Nov 5, 2013 12:53:25 AM

SemiSteve said: "It is nearly impossible to get a dollar that hasn't been part of some crime at some point in it's existence."

--Are you once again asserting that money, and particularly foreign money, and more particularly South and Central American money, is only made through, effectively, dishonesty or illegal activity?
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 4, 2013 9:19:47 PM

I have heard it said that every dollar is only a few clicks away from an illegal activity. It is nearly impossible to get a dollar that hasn't been part of some crime at some point in it's existence.
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mudtoe
Champion Author Cincinnati

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Message Posted: Nov 4, 2013 8:48:25 PM

SS: "Big money coming into the USA doesn't count if it's ill-gotten booty, even after it has been cleansed. Doesn't help our economy at all."


Well, SS, if you think that laundered money from international drug lords, gun runners, and third world dictators is going be sufficient to run the country and fund the socialist welfare state after the entrepreneurs leave, there isn't a whole lot more for me to say....... other than...... Hahahahahahahaha!!


mudtoe



[Edited by: mudtoe at 11/4/2013 8:51:36 PM EST]
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 4, 2013 8:30:33 PM

Oh I see. It's conditional.

Big money coming into the USA doesn't count if it's ill-gotten booty, even after it has been cleansed. Doesn't help our economy at all.

But the big money legally extracted from the middle class by destroying their jobs and nickel and diming the electorate to death will flee to other nations, eh?

Just none of the nations the ill bootten gotty came from.

Because that would make the whole premise silly.

Got it.
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mudtoe
Champion Author Cincinnati

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Message Posted: Nov 4, 2013 6:48:39 PM

SS: "The reason I posted this topic was for all the conservatives like mudtoe who keep saying that Obama and 'socialism' are driving big money away."



Based on the countries you listed it looks like a lot of this money is likely of questionable origin. When you are trying to launder money and/or get it out of the country where you obtained it, you worry about making it clean, not about the taxes. And on top of that these folks are likely not U.S. citizens, so they don't have to pay U.S. taxes on their worldwide income even if they do own assets in the U.S. That also makes a huge difference strategy wise versus a U.S. citizen who is looking to save themselves from socialism.


mudtoe
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SemiSteve
Champion Author Tampa

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Message Posted: Nov 4, 2013 6:36:48 PM

OK, you guys totally ran off the chain.

Wow. Talk about jumping to conclusions.

And all these accusations and assumptions before I made even ONE comment about this! The whole OP is quotes!

The reason I posted this topic was for all the conservatives like mudtoe who keep saying that Obama and 'socialism' are driving big money away.

And lookie here. Here's a whole article about big foreign money coming in.

Good grief. Get a grip.

I had intended to come back and comment sooner; but wow. Talk about grabbing the ball and running the wrong direction. You guys completely left the field.

And I see mudtoe has yet to comment. Are we surprised? This goes against everything he has been trying to tell us.
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MiddletownMarty
Champion Author Connecticut

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Message Posted: Nov 3, 2013 4:22:47 PM

I think the big issue here is the very real possibility that money is being laundered via real estate transactions being conducted in cash.
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sgm4law
Champion Author Maryland

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Message Posted: Nov 3, 2013 1:12:34 PM

Reminds me of this story in Vanity Fair about foreign real estate investments in The City.
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jayrad1957
Champion Author Los Angeles

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Message Posted: Nov 3, 2013 1:03:01 PM

Have to disagree with you this, Steve. Rich foreigners spending money here at home. How is that an issue?
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gocatgo
Champion Author South Carolina

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Message Posted: Nov 3, 2013 12:21:37 PM

When have rich foreigners not been welcome to America? Pretty much never. I fail to see why this is an issue.
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AC-302
Champion Author Los Angeles

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Message Posted: Nov 3, 2013 10:42:33 AM

SemiSteve - I find it interesting that you're decrying foreign investment. I agree with NST - are you a xenophobe? Seriously.

Again, I'd direct you to the Planet Money podcast. I recently listened to one of the older episodes on reserve currencies. The question was: Why is the USD still the preferred reserve currency in the world? The answer isn't so complicated. The Swiss Franc is pretty stable, but there's simply not enough of them to go around as Switzerland is really kind of a small country. And if they printed CHF to cover all needs, it would degrade their currency and buying power. If EVERYONE needed CHF, but they didn't fire up the presses, then it would make the currency too expensive to be practical. The Euro? OK, but the Euro is having some serious crises that make it less stable. The Chinese Yuan? Well, it's not a true world currency as China controls it's Yuan/USD exchange rate and doesn't truly let it float as it should. The Yen? Well, Japan's economy is on it's keyster, and has been for 20+ years because they have refused to write off bad loans. Your only choice for large sums of money right now is the USD, or perhaps the CND, to a lesser extent.

Speaking of Japan, do you recall in the late 70s and early 80s when we had Japanese investment in real estate going cocoa-bananas? And do you recall we had a market downturn that effectively killed their investments? The same thing will happen with these South and Central Americans. And it has, your article said it did once already.

[Edited by: AC-302 at 11/3/2013 10:44:11 AM EST]
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nstrdnvstr
Champion Author Twin Cities

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Message Posted: Nov 1, 2013 11:33:06 AM

SemiSteve, are you xenophobic?
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