crowdfunding with funds from foreign investors

7 Replies

I would like to starting an initiative to pool together loaned funds from foreign investors for the purposes of buying rental properties here in the U.S. My questions are:

1. I know there are regulations on money going out of the U.S. but is there a problem with soliciting incoming foreign funds?

2. Does anyone have any guidance on how I should approach this or expertise in this area?

Hi @Ana Jolie

Our group has worked with many foreign investors over the years and I don't believe there are any issues with money coming in from investors for the purpose of buying real estate.

I also don't believe there to be any issues money going out as long as distributed by a property manager.

Thanks for reading and have a great day.

Engelo,

Thank you for your reply.

I already have two people interested. 6 more and I will have my first crowdfunding deal :) I am thinking of setting up the managing entity as a LLP. Any thoughts on that?

No problem @Ana Jolie

Well done on getting 2 people on board.

I don't know what a "LLP" is?

What areas are you looking at targeting?

Thanks and have a great day.

an LLP is a Limited Liability Partnership.


Originally posted by @Philia Rifai :
an LLP is a Limited Liability Partnership.

Thanks Philia,

What is the difference?

I am a partner in 2 LLC's

Thanks

Oops! I meant LP (Limited Partnership). I'm reading about how to structure the company and understand it can be either as a:

1. Limited Liability Company (LLC)

2. Limited Partnership (LP)

3. Trust

It seems like I need an LLC since the investors can choose to invest in as many properties as they want and will have unequal equity positions. If anyone has a good referral for a knowledgeable -and patient- attorney that is located in Central Texas, I'd appreciate it.

I’ve found three properties that I’m in talks with the owners. Two in San Antonio and one near Eagle Pass.

The two people are extended family overseas but they have contacts they are talking to. I'm typing up my pitch to present them. Wish me luck :)

Hello

This link will give more info

http://smallbusiness.chron.com/difference-between-llc-llp-3760.html

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Get the Ultimate Beginner's Guide

Sign up today to receive the popular eBook for free!