With 32 condo towers under construction in South Florida and 70 more taking deposits for units priced at $725 to $1,000 per square foot, the South Florida Business Journal looks at the possibility that at least some of the demand for condos may be fueled by gangs laundering drug money.

Developers now expect up to 60 percent down, so deposits are funding the construction boom. According to the Miami Association of Realtors, nearly 3 out of 4 condo sales in the first half of 2013 were cash deals, and close to 9 out of 10 condo buyers in the market last year were foreigners.

“The increase in cash sales in Miami doesn’t prove there is money laundering going on, but it increases the potential for money laundering because of the lesser regulation in the cash market,” the paper reports.

Federal authorities have filed motions to seize 77 properties in Miami-Dade County in connection with criminal prosecutions, up from 59 in 2012 and 41 in 2011, Brian Bandell reports.

Josh Burdett, head of financial consulting firm TMP Risk, advises real estate professionals to do more due diligence on customers, particularly those who are using shell companies, seeking to close too quickly, or using multiple cashier’s checks. Source: bizjournals.com.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×