What is a common method used to launder money through real estate?

Purchasing property with illicit funds and selling it for clean money is a well-recognized method of money laundering within the real estate sector. This process involves using illegally obtained money to buy real estate, which then serves as a façade of legitimacy. Once the property is purchased, the individual may later sell it and obtain proceeds that appear to be legitimate.

This method takes advantage of the real estate market's complexity and the higher values typically associated with real estate transactions, making it easier to obscure the true source of the funds. By integrating unlawful funds into a legitimate business avenue—real estate—the individual can effectively ‘clean’ their money.

The other options do entail legitimate financial activities but do not directly relate to the concept of money laundering in the same manner. For instance, creating investment accounts and investing in property development projects can be legitimate business practices but are not specifically identified as money laundering techniques. Similarly, renting out properties to legitimate businesses is a normal operation in real estate and does not inherently involve the conversion of illicit funds to legitimate ones.