The fixes are as obvious as the vulnerability: regulatory changes that bring real estate in line with other financial systems. In 2016, the US Treasury Department implemented a pilot program in twelve cities (known as a “geographic targeting order”) requiring LLCs to reveal their beneficial owners when they are created. This resulted in a 70% drop in cash purchases of real estate by LLCs. This requirement could be made permanent and nationwide; in fact, geographic targeting orders have recently been renewed and expanded to encompass new real estate markets.
