CASH???

I didn't catch the "I don't keep my money in banks". Yikes. It's not 1929. I can't think of anyone that would be willing to take possession of that much paper currency. Both for security and for chain of custody. Every 'cash' (wire transfer) purchase I've made has involved showing that the money is coming from an established account.

Interesting paper from FDIC on un-banked households HERE. Overall, about 4% of US households are unbanked, but skews heavily towards lower income and minority households (29.3% of black households with incomes less than $15k/yr are un-banked vs 13.6% of white households <$15k). For households with >$75k/year in income, unbanked rate ranges from 0.3% (white households) to 1.7% (black households). #1 reason given for being unbanked is "Don't have enough money to meet minimum requirements." Use of payday loans, rent-to-own places, and pawn shops also correlates to income.

Given such a small market for higher-end purchases in cash, unlikely Amscot will be unlikely to offer help in buying a $100k boat, but you could always ask. I'm sure the fees are extreme.

If the OP ever returns, I'd be curious for him to (a) confirm he means greenbacks when he says "cash;" and (b) how does he buy anything else in life? Car? House? Airplane tickets? Presumably he's somewhere near the 0.3%/1.7% of higher income folks who are unbanked - I'd assume he'd have more info on overcoming hurdles like this than the other 99.7% of folks on this list.

Peter

I think most of it has to do with the potential for running afoul with the Gov, and none of us want that as we are law abiding citizens. But don't worry. It will all be digital soon enough. That's why they let bitcoin get a foothold. So you would get use to the idea.

I paid cash for my house and last two boats. But then I was known to house and boat brokers. As cash I wrote as personal check to the broker with the offer to buy. Closing was always a week later with time for the check to clear escrow.
Never has a problem closing the deal.

mvweebles said:

Interesting paper from FDIC on un-banked households HERE. Overall, about 4% of US households are unbanked, but skews heavily towards lower income and minority households (29.3% of black households with incomes less than $15k/yr are un-banked vs 13.6% of white households <$15k). For households with >$75k/year in income, unbanked rate ranges from 0.3% (white households) to 1.7% (black households). #1 reason given for being unbanked is "Don't have enough money to meet minimum requirements." Use of payday loans, rent-to-own places, and pawn shops also correlates to income.
Peter

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I work in the mortgage industry, in the Southwest. (However that is going to change soon as I retire) There is a cultural thing where some ethnic groups do not trust banks. Mostly because they came from or were brought up in a household that came from a different country, where banking is not the same as in the US. Usually from countries South of the US. The industry recognises this cultural thing and makes accomodations for undocumented cash to close when buying a home and getting a home loan.

This is not as common as it once was (at least for me) a couple of decades ago. There are still situations of first time home buyers saving cash in thousands of dollars and using it to buy a home. And if they get paid by check, they take that check on pay day to the bank it was written on and cash it.

As a hobby, I sell classic car parts. Last month, I had someone buy a complete interior from me for $1500. All in hundred dollar bills.

OP is not gone. I just tried to keep it short. But here we go. I’m 75, worked and saved all my life with help from wife. No kids and everything we own is paid for. Sold my last boat for 100k; they paid me cash even though I didn’t ask them to. Deposit it in my bank. But many times I say I would like to pay in cash (100s) the seller almost has a breakdown. A couple of months ago doctors spotted cancer and said I only have a few months left. Found a boat I really like, 250k. So, why not and why leave a pile of cash behind. However, after reading your comments I think I’ll just put it in the bank and do a EFT. Screw it. Now.

We don't fit into any of those groups. I have always been paid monthly at work with direct deposit. We keep a large amount in savings accounts we can write checks on when needed. When we sold our last home, the funds were transferred to our accounts. Never had an IRS issue with funds over 10K. I know it may sound funny, but I have never received a paycheck.

Dixie Life said:

OP is not gone. I just tried to keep it short. But here we go. I’m 75, worked and saved all my life with help from wife. No kids and everything we own is paid for. Sold my last boat for 100k; they paid me cash even though I didn’t ask them to. Deposit it in my bank. But many times I say I would like to pay in cash (100s) the seller almost has a breakdown. A couple of months ago doctors spotted cancer and said I only have a few months left. Found a boat I really like, 250k. So, why not and why leave a pile of cash behind. However, after reading your comments I think I’ll just put it in the bank and do a EFT. Screw it. Now.

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Oh man, really really hate to hear that, and we all think about this as the fuse gets short. If you don't mind, tell us about your boat and where you are headed? I see the Dixie Life, we are proud to live in Dixieland. Get that boat and go like hell till the end.

DL, I've always felt that a day onboard equals 2 on shore...

Thanks guys.

I’m in La. And the boat I’m looking at is in FL. Here’s one thing I’m concerned about, I’ll have to go through a lock or two. Never been through a lock. The biggie is I’m going solo. Oh well, it ain’t nothing but a thang.
P.S. the boat is 50’ and no thrusters. Keep your eyes on the news. Lol

LA as in Los Angeles?
Or LA as in Lousiana?

If the first, good luck. The US canal system has not connected the East and West coast yet.

With the avatar Dixie Life, I'm betting Louisiana. Dixieland with a little maritime feel to it...but I could be wrong!

BTW, l have a broker friend who will be listing a boat in Harbor Town HHI soon, a DeFever and I think it will be inexpensive. It's owned by someone in their 90s, not sure if it is started etc often, but it looks nice from a distance as i have not been aboard. It's the one on the end. Perty sure he said low 100s.

fgarriso said:

I paid cash for my house and last two boats. But then I was known to house and boat brokers. As cash I wrote as personal check to the broker with the offer to buy. Closing was always a week later with time for the check to clear escrow.
Never has a problem closing the deal.

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I can see the strategy being very attractive and thus being able to buy at ridiculously discounted prices. Did you even have time to survey the boat or just relied on your own inspections?

Dixie Life said:

How do people buy a boat with cash without getting red flags? Also, brokers look at you like you’re a drug dealer. I’m 73, worked forever, saved, now just want to buy a nice boat and relax. Advice please.
P.S. I don’t keep my savings in a bank. Another problem.

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Is this an "under the mattress" bank account LOL! Back in the '70s, in an attempt to impress me, I had a guy place 20 $1000 bills on the salon table to buy our boat. I told him 10 more bills and the boat was his. He wanted to go for a check ride with that cash onboard. I thought about a one way trip for him but thought better of it LOL! The broker with him was aghast, he had no idea this was happening. Ah for the good ol' days of $1000 bills! In Mexico real cash deals happen all the time. Paid greenbacks for a house. After converting to Pesos it was a suitcase full of bills. The contractor did not use a bank either LOL! I think today you are better off even if you have to pay a fee at a bank, get a check. Also, the bank will have to report any cash transaction over $10k. You would be better off to open a small checking account even if it is just for this transaction then close it.

slowgoesit said:

Knew (vaguely) a guy who owned a legal Medical Marijuana Shop in Washington State. Gov't says you can use a bank to deposit $$ in from sale of Marijuana since it still illegal by Federal law, so ALL of his transactions were in cash, cars, house, etc.

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I believe you mean you can't use a bank...

I would suggest that that is the best way, after all the surveys (hull/boat and engine(s)) are completed and satisfactory (or price adjusted), title search is done and clear, insurance carrier has approved vessel and the Admiral is on board . . . Boat for the most part are an emotional purchase and if you are not going to use it (regularly, live on it, cruise to exotic destinations) you can be “upside down” quickly . . . 100% ownership is the way to go . . . We used a
ASAP Marine Documents to insure a total clear transfer of CLASSEA from prior owner in a cash transaction . . .

Standing by-

lensming said:

I believe you mean you can't use a bank...

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Last year, a lockmaster on the Trent-Severn remarked how lately there were more younger people with big boats that spent a lot of time on their cell phone. He said he could ask them what they did for a living but was concerned that he would be complicit. ;-)

You have to be careful about carrying around a lot of cash. You get stopped by the police and they find it they may sieze it and you play hell getting it back. Civil Asset Forfeiture is what it is called. Saw some legal videos online about it and it looks like a quagmire if it happens to you.

Should be resolved quickly after you take the police to the boat you are buying and the owner knows you.

Delta Riverat said:

Should be resolved quickly after you take the police to the boat you are buying and the owner knows you.

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I certainly am not an expert on Civil Asset Forfeiture but in watching some lawyer videos on the subject it is very difficult if not almost impossible to get it fixed. But YMMV…

In '10 when we purchased our boat we paid cash, well gave a personal check with no issues.

Most drug dealers would probably NOT be buying a trawler, they'd want something a little faster.

I think if you go to closing and hand over the cash/check, let the seller decide to take it or not. MY guess, the money will disappear very quickly.

Have fun.

Comodave is correct about Civil Asset Forfeiture. It is a little understood law that allows Law Enforcement to assume money is guilty of a crime and confiscate it. It is then up to you to prove the cash is innocent. Not easy, requires lawyers and the government will fight you every step of the way just to keep the money. The more you research the subject the more angry you will get that it is legal.