Loan from a foreign national - Tax withholding?

[Jonathan B.]

Greetings,

I know a few colleagues and friends (Israel) that are interested in investing together, buying rentals -

The more i read -i find that its easier way for a foreign national to invest in US property is by giving out a loans back by the property (Interest income)

How should one avoid being liable for "Foreign investor tax withholding" for their interest income?

I read that Registering investors under an LLC -> which in turn this LLC gives out a loan to my main holding might be a good way to circumvent that?

was hoping someone break this down so that i makes sense?

thanks