Investor wants to Invest

[Grant Anderson]

Hi Everyone,

A family member wants to invest money with me on a flip property. The only thing is he has only cash to invest, he does not trust banks. Is there anything I have to worry about if accepting cash? It will be around $50,000. 

[Jon Holdman]

By cash I think you mean piles of bills.  You cannot easily accept a briefcase full of cash.   You will have even more difficulty returning his investment and returns in cash.  Depositing $50K in cash, which WILL have to happen at some point in this transaction will require the bank to do a "suspicious transaction report".  They are guarding against money laundering.   You, he, or the both of you will be required to explain the source of the cash.  Shouldn't be a problem as long as the money can be explained.  OTOH, if there is not a good explanation, then its possible you might really be involved in money laundering.  You certainly don't want that.