Concern Grows Over Purchase of Property With Illicit Funds

More than 90% of real estate professionals in western states believe that the purchase of real estate with “drug money” and other illicit funds is a growing problem for the industry, according to a new survey.

Nationwide, 81% of real estate professionals say such purchases are on the rise, according to the survey conducted by New York-based newsletter Real Estate Insider.

About 71% of respondents working in the South, 67% of professionals in the Northeast, and 23% of those in the Midwest said they believe more properties in their area are being bought with illicit funds.

Seventy percent of the respondents were owners, chief executives or broker-managers of real estate firms. The remainder listed themselves with titles such as vice president or general sales manager.