Buying a house at age 18

[CCCmints]

The IRS is still going to wonder where you got the 50k from to buy the house especially at age 18. You'd need to show legit transactions from various 3rd parties.. aka laundering lol.. there's no other way around it.

this.

anything over 10k and the irs becomes interested. what makes you think dropping 50k cash is gonna be a freebie?

also, you're going to need more than a $1k startup to grow marijuana for profit..how much do you think you can pull outta that tent exactly? if you're lucky you'll get a half pound each harvest. so what thats $500 a month give or take? you'd be better off getting a real job until you can afford a real setup

 

[OGEvilgenius]

You won't raise any red flags dropping 50k cash on a realtor/bank. Don't stress it.

 

[tip top toker]

I don't think you understand what I'm trying to do. I'm trying to avoid money laundering by buying fixer upper houses, putting my grow profits towards fixing them up, then selling them well above what I paid for them in the beginning resulting in legal money.

You are looking to turn dirty money into clean money. Yet you are somehow claiming you are not laundering your money.

 

[chocobear]

Yea, sounds like you want to take your 50k (I'm going to assume you got it illegally, however I could be wrong) get a "fixer upper" house and use illegal money to fix it then sell it. So technically you aren't laundering anything. You are trying to spend 50k worth of drug money to then use more drug money to fix a house up (that you used FIFTY THOUSAND DOLLARS of DRUG MONEY to buy). Then you are going to sell that house, and now you have a whole house worth of CLEAN money that you can now spend and tell the IRS to fuck off anytime they come asking about your brand new ferrari parked next to your lambo that is sitting outside of your shack you built with cardboard boxes in the middle of an intersection in New York City. Oh and you say you are 18 too!!

Pretty awesome plan, let me see if I can come up with any potential problems that you could try and avoid....
Hmmm this is tough, I'm going to take the role of IRS advocate. Its similar to being a Devil's advocate but instead of trying to counter you at every turn, I'll say what the IRS would say if you went through with this venture.

Scenario 1 ____________________________________________
IRS: Why hello there Mr. 18 year old who put down 50k for a house, we were just curious, its not a big deal or anything but... where did you happen across that money? Gift from mom? Did a couple of odd jobs around the neighbor hood?

18yearOldwith50ktoSpend: Oh... yea about that... so you see I have this thing where I sell illegal drugs or something else that I have no real records of and none of this money is legitimate, I'm just trying to buy a fixer upper house so I can use drug money to fix it and sell it for clean money that I can use to buy my ferraris and lambos when I get mad stax of cash.

IRS: That is super illegal and we're arresting you now

18yearOldwith50ktoSpend: Thanks man, you're the best!! =D
____________________________________________________
Scenario 2___________________________________________

18yearOldwith50ktoSpend: Jail sucks, I should've tried laundering money first, until I had enough clean cash to put down on a house that I could THEN use illegal drug money to fix up because there will be LITTLE TO NO PAPER TRAIL to tie me to the contractors that did all the work since I could pay them with illegal cash no questions asked. But I made a pretty stupid decision trying to use 50k cash that I can't prove the legitimacy of. Oh well, better wait till I'm out of jail to try again!!
___________________________________________________

See the joke is that there is no scenario two, as you are in jail for trying to cut too many corners. The more you try to get away with, the harder people are going to work to stop you.
Nobody cares what you do as long as they get what they want. The government, the IRS, they want your money, if you pay taxes, they keep their mouth shut and don't bother you.
You are trying to do just the opposite of what they want. You want money, and lots of it, but you don't want to pay taxes until you cash out. Doesn't work that way.

You need one of two things. Clean money to start, or a way to turn your dirty money clean that doesn't require so much $$ up front. You're gonna have to pay taxes on the 50k you've got to legitimize it so it can be used in large purchases that will attract attention. Or you need someone else who has $$ up front that is legitimate, have them buy the house and become "business partners"

*IMPORTANT*
If you are trying to cheat the system, the system will come after you. Unless you cover your ass.

Brief analogy:
You waving 50k in someone's face at a young age with no way to explain how you got it is like a kid trying to cheat on a test, but instead of covering the answer key while he copies all the answers, he turns in the answer key and calls it his test.

Common sense is there for a reason, you should try using it instead of running from it.

 

[Growingforpeace]

My opinion: your 18 and have 50,000 thousand "dirty dollars." If you are dead bent on buying property clean the money first..now i would actually suggest you dont buy a house simply to grow for profit. There is a reason most people here grow for personal use... Cannabis isnt nearly as lucrative as you think.. Take a lot of energy, time and money to grow. I suggest you take your cleaned money and get an education. Learn a trade, if you were a carpenter with some skill and cash in hand with some grow experience and a home with clean earned money you see how that changes things? Right now you are a kid with all that money and frankly it seems like your going to end up in prison with your ignorant and naive understanding of whatever the hell your trying to do.

 

[Grenwall]

I find it amusing how so many people who want to bash use information that I have never said in this thread or confirmed. Obviously my first post on my account has nothing to do with my current plan. $1000 was my budget when I first came to forums, not that I didn't have the money to spend more, but that was money I was willing to "lose" if I bought the equipment, found out growing wasn't for me and be perfectly fine never using that equipment again.

I obviously have the initial $50k worked out and is/will be considered clean money..... main reason I didn't ask a question about it. Now about the money laundering issue. My idea of money laundering is buying businesses and pumping your drug money into them saying that it was what the business made and pay off the taxes on that. The reason *I* don't consider my plan "money laundering" is because it will basically be flipping houses which is what real estate agents basically do (buy cheap, sell high). Buying a fixer upper, fixing it up, then selling it would bring in less questions than if you were to get investigated by the IRS for saying your business bought in thousands of dollars a week, then when IRS came in snooping around you barely made any money. Catch my drift?

 

[tip top toker]

Why didn't you just state this in the first place?

You started off saying that you obtained your money from a HIGHLY illegal source. So naturally our responses were based on why you will have trouble getting away with using drug money as your source of initial investment.

Now you are saying that the 50K you have will be clean when you buy the house, which changes the question entirely. Now you're simply asking if you can buy a house, grow weed to fund fixing it up, then sell the house. A different thing entirely. In which case you can remove the whole house form the equation.

Essentially all this is is can i make money growing weed. Yes. After that you simply have to "launder" that money so as to pay for supplies and whathave you in a legal manner. If you buy a house and flip it for twice the value, chances are eyebrows might get raised as to how you managed to double a houses value without a corresponding source of income required to increase its value so much.

 

[kinddiesel]

you cant get a mortgage. because you don't have credit. but you can get some body else to sigh the lone along with you . co sigh . and pay on the house slowly. to do one large drop like that you would to sell some ting that costly. there are a lot of other ways to do it. but im not feeling it posting info on here.

 

[Grenwall]

Why didn't you just state this in the first place?

You started off saying that you obtained your money from a HIGHLY illegal source. So naturally our responses were based on why you will have trouble getting away with using drug money as your source of initial investment.

Now you are saying that the 50K you have will be clean when you buy the house, which changes the question entirely. Now you're simply asking if you can buy a house, grow weed to fund fixing it up, then sell the house. A different thing entirely. In which case you can remove the whole house form the equation.

Essentially all this is is can i make money growing weed. Yes. After that you simply have to "launder" that money so as to pay for supplies and whathave you in a legal manner. If you buy a house and flip it for twice the value, chances are eyebrows might get raised as to how you managed to double a houses value without a corresponding source of income required to increase its value so much.

I understand your point, I started off the thread saying I had $50k which to everyone should had meant it was clean money, it was only until some idiot tried to bash that I had to explain I would be better off cultivating than continuing to do what I was doing. I wanted to hear people's opinions on my plan of buying a house in bad condition for cheap, fixing it with drug money, then selling it. Are there any flaws in this, advice, etc? I don't see how eyebrows would be raised if I bought something cheap, fixed it myself, and sold it for a higher price.

NOTE: I would not fix it myself, I would pay contractors to do the work, and pay them in cash. I said "myself" as that is what it would appear.

 

[greenlikemoney]

Feck it, let's hook up and blow your 50k on strippers and blow !!!!!

 

[tip top toker]

I understand your point, I started off the thread saying I had $50k which to everyone should had meant it was clean money, it was only until some idiot tried to bash that I had to explain I would be better off cultivating than continuing to do what I was doing. I wanted to hear people's opinions on my plan of buying a house in bad condition for cheap, fixing it with drug money, then selling it. Are there any flaws in this, advice, etc? I don't see how eyebrows would be raised if I bought something cheap, fixed it myself, and sold it for a higher price.

NOTE: I would not fix it myself, I would pay contractors to do the work, and pay them in cash. I said "myself" as that is what it would appear.

My point still stands though. If you buy a house for 50k and sell it for 100k, if someone gets nosey, how do you explain how you managed to double the value of a property, and records would also be available detailing the state of the property upon purchase, and then upon sale. Eyebrows would be raised as to how this was all funded. You can build a conservatory, and pay for it in cash, but someone might ask how you built a conservatory if there are no bills and your legitimate income placed agaisnt your outgoings, would allow you to afford such a thing.

I think you should just focus on a method of laundering the grow cash, because as it stands, it is little different to a dealer buying himself a bmw with his dirty cash. Once he sells it on, it'll once again be dirty cash as he has no record of how he paid for it in the first place. Generally how dealers get busted, bling. What he wants to do is launder the cash so that he can buy the bmw legitimately, so that when he sells it, the cash he receivs is also deemed legitimate.

 

[Commander Strax]

take the 5k that your mom gave you and buy a fucking house already.

 

[SmokinErb22]

Didn't get much further than page 2 of this thread, but I think a better solution than buying a 50k house and fixing it up is to rent-to-own. You could buy a turn-key home for 120k that way and have it payed off in a few years by using the renovation money to pay 2x-3x the monthly payment.

I'd also like to mention that I have no experience in this. I'm looking to buy my first home as well.

 

[SunnyJim]

The OP will get away with pumping grow money into flipping houses until he is audited. If/when audit day comes, the OP is going directly to jail.

As someone mentioned, paying for services in cash, or pumping 'dirty money' into a clean business and liquidating that business by trying to sell it legitimately does not disguise your dirty financial paper trail. All it takes is a simple investigation into your financial history, ie) the source and amount of your 'declared' and taxable income (either personal or business) versus the amount you're spending (or have spent) and are worth in taxable assets. If you're spending more than you legitimately earn and declare (which is taxable), the IRS will find out when they start investigating, no doubt about it.

It isn't as easy as buying a cheap house, using undeclared cash to fix it up, and selling it for twice the value. Enter IRS Audit Man.. "Where did you get the cash to fix up this property? We understand you were given $50k as a legitimate cash gift from your late Granny Loadsofcash to pay for the purchase of the house, but we can't see how you've paid for this new kitchen, bathroom, electrical and plumping work, decorating, ... when it says here that you're only earning $20k a year after tax. Can you explain this to us, Sir?" Expect that question to be asked if you're ever audited.

Like I said, you'll get away with it until someone bothers to check what you're doing. Good luck.

 

[Dogenzengi]

I think you should speak to a financial advisor....

 

[Zheol]

I say use the 50k to go to school get a career buy a house and by the time your all done with this you will be set for
life with NO jail time plus you can grow herb while in school win win around

 

[Great Lemon Skunk]

The OP will get away with pumping grow money into flipping houses until he is audited. If/when audit day comes, the OP is going directly to jail.

As someone mentioned, paying for services in cash, or pumping 'dirty money' into a clean business and liquidating that business by trying to sell it legitimately does not disguise your dirty financial paper trail. All it takes is a simple investigation into your financial history, ie) the source and amount of your 'declared' and taxable income (either personal or business) versus the amount you're spending (or have spent) and are worth in taxable assets. If you're spending more than you legitimately earn and declare (which is taxable), the IRS will find out when they start investigating, no doubt about it.

It isn't as easy as buying a cheap house, using undeclared cash to fix it up, and selling it for twice the value. Enter IRS Audit Man.. "Where did you get the cash to fix up this property? We understand you were given $50k as a legitimate cash gift from your late Granny Loadsofcash to pay for the purchase of the house, but we can't see how you've paid for this new kitchen, bathroom, electrical and plumping work, decorating, ... when it says here that you're only earning $20k a year after tax. Can you explain this to us, Sir?" Expect that question to be asked if you're ever audited.

Like I said, you'll get away with it until someone bothers to check what you're doing. Good luck.

say your self employed? would that not work? cause im 19 and will hopefully be buying a house in the next 1-2 years but im self employed.

 

[Zipz]

If your self employed you need to show proof of where your income came from. You need to keep records of all expenses and income and file taxes. You should know this if your legitimately self employed.

 

[SnapsProvolone]

Just have your taxes in order. It will get looked at. If you plop down 50k cash the IRS will be interested.

 

[skatercodyme]

Just tell the IRS to fuck off... They are a fraudulent bureau anyways.
There's no law that you must pay taxes; Yet they will try to fight you about it. lulz Such a joke.
They somehow talked the public into taking their hard earned money, and people let it happen.
As long as people keep LETTING shit like this to happen, they'll keep taking our money.
That's why I live on under $5000 a year! Fuck taxes, I grow my own food.