MIAMI—A flow of foreign money is entering the American real estate market every day, and especially gateway cities like Miami and New York. The New York Times recently published a series of investigative stories about the US government's moves to pinpoint the origins of wealth. The conclusion: Many foreign buyers are purchasing under LLCs to hide their shady, illegal and questionable activities.

That, however, isn't the case according to Ed Mermelstein, a founding partner of RheemBell & Mermelstein LLP, an international real estate law firm that represents high net-worth investors, developers and a broad range of financial institutions in private equity, commercial, and residential real estate transactions. GlobeSt.com caught up with Mermelstein to get his perspective.

GlobeSt.com: Why are foreign buyers purchasing homes under LLCs?