International Investors?

4 Replies

Does anyone have experience with investing in notes with a private lender who is international? If so, what considerations should I take into account? Right now, I'm looking to keep it simple- investing in one note with one investor (vs. doing a pool). Any feedback or recommendations would be appreciated!

Hello Alberto, i believe what is important is to do a legal agreement amd memorandum of understanding putting all terms of investment into consideration.

Originally posted by @Don Konipol :

We have 52 jurisdictions all with different laws regarding foreclosure, lien theory, grace periods, redemption rights, lockouts, usury, etc.  And you want to go international? LOL

 He's asking how he can do a joint venture with someone outside the country, which is a great question. People always say to start with your friends and family.

The question sounds like the international investor is the one leading the investment strategy.  That would be a bit concerning from a compliance standpoint.  Any lender in the US is subject to US rules no matter where they come from.

Raising money from international investors, where they follow a domestic manager and that manage leads compliance and regs is done all the time.  The other way around, not so much.

There are lots rules which govern this type of thing but your best bet is to sit with a corporate or securities attorney and get it sorted out.  One of the funds we operated was solely foreign investors.  The fund qualified for "Portfolio Tax Exemption" which essentially let's the investors money flow back to the investor and taxable in their country of origin. It still operates like a normal fund or company it just qualifies for the treatment as an incentive for foreign capital. 

All the other concepts that you can think of will apply such as money laundering and securities rules, etc.  There is not enough detail in the OP to really cover much else.

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