PROCESS AND GUIDELINES FOR FOREIGN NATIONALS INVESTING IN USA

11 Replies

Hi have access to and know high net worth individuals who are foreign nationals (non US citizens) that are interested in acquiring residential multifamily properties. (2-4 units or 5+ units). Most likely it will be a partnership between me and them. I am a US citizen.

What are the guidelines/ process for them to acquire real estate in the US? 

What are the tax implications, minimum investment period etc?

How would the financing of these properties work? or is better to pay cash and take a HELOC?

Thank you in advance

-MIL

The answer is you need a good a lawyer and accountant that specialize in foreign investors. They will tell you how to get money to the US and what sort of legal entity they should hold property in. Talk to them and get educated before you do anything. I do have a lawyer for you if you need one.

I appreciate your input and would like to speak with the lawyer more in detail.  I have heard about a lot of Chinese, Japanese and Middle eastern foreign nationals investing in US real estate. I know it can be done. 

I am Australian and invest in u.s. Real estate. The main requirements for the investor are an LLC, an EIN, and a u.s. Bank account. The latter is now impossible to get, unless you are on u.s. Soil and have the first 2 requirements, and all their paperwork. Other than that, it's just business as usual.

Originally posted by @Deborah Tuck :

I am Australian and invest in u.s. Real estate. The main requirements for the investor are an LLC, an EIN, and a u.s. Bank account. The latter is now impossible to get, unless you are on u.s. Soil and have the first 2 requirements, and all their paperwork. Other than that, it's just business as usual.

 We have been able to open U.S.A. bank accounts from Canada.  I'm not aware of regulatory differences, but perhaps there are.

Deborah, 

I am a US citizen living in US. (Atlanta, Georgia) The plan is to partner with a foreign national living in India to invest in US real estate. LLC, EIN and Bank Account is not a problem in my name since I'm a citizen. Will i have any issues getting the above working with foreign partner?

Any lawyer and accountant recommendations who specialize in real estate with foreign nationals?

-Mil 

Mil,

Obviously you won't have problems doing stuff in your name - it's only if the investor wants to do / hold stuff in his own name / individually. You'd have to see a lawyer re partnering with a 'foreign alien' ( that's what they call us - not sure if it applies to Canadians or not!) but it's probably fairly easily resolved if as you say it's in your name.

Hi @Milan Sanghvi

Good Question. Here is how you can fund your deals. Please consult with a legal professional and do your own due diligence. This is not a legal advice and please consult with a legal professional.

1. Set up an entity - LLC/S-Corp/C-corp/Trust based on consultation with a legal professional

2. Create an operating agreement with your private money partners 

3. In GA you will need to have 25% equity as a local partner to get financing from the banks. 

4. You can fund the money from your investors in India for down payment and take a loan. Don't go the HELOC route and keep business/personal separate

5. The banks will give you a loan based on your GA residency and your equity stake.

6. You can fund the down payment and banks will  finance the 75%

Here in Atlanta there is a good bank that deals with a lot of Indian nationals. It's not really that complicated. 

Good Luck!

Hi Deborah,

I'm also Australian and looking into investing.

Can you please tell me where do you go setup LLC, EIN and bank account?

Do you have a good attorney and accountant that you can recommend?

Thanks

Chris

Hereby a attorney that is specialized in working with foreign investors. He did a seminar on the subject at the Fort Lauderdale board of Realtors last year, was very interesting. 

Steven Elliot, Esq, The Wallace Law Group.

Hey, Milan Sanghvi

I would say you can do hire some people with better knowledge on real estate or you can join with some educated people like Shaun McKay at American IRA. Who are doing this for years. This Shaun McKay what my understanding manage over $300,000,000.00 in assets over investing on real estate.

So, if you need more understanding feel free to reach out them.

Thank you