Any issues with investing in a syndication while on a work visa?

Question

I have 200k currently to invest.

I am on a work visa in the USA currently. If I invest with you guys an LP in syndication while I am on this visa and then in 3 years move back home,

what happens to my investment and operating returns?

Are there any legal or tax considerations?

Thanks in advance for any help! Really appreciate this community.

Percy N. · Answer

Check with an SEC attorney, but my understanding is that a US Tax ID Number (SSN, EIN, TIN) is key if the syndication is going the Reg D 506(b) or (c) route.

If you want to accept foreign investors, you may need to do a Reg S raise. Again, talk to an SEC attorney about the details.

Bjorn Ahlblad · Answer

https://www.uptownsyndication....This article will answer some of your questions. I bought my first house in Ca before I even had a visa and I did not live in the US at that time. I had opened a US bank account a few years earlier, and that seems to be important. Yes, you can participate in a syndication and there are several represented here on this site. All the best!

Evan Polaski · Answer

@Victor Lee, agreed that it shouldn't be an issue.  As noted, most syndicators do not accept non-US tax payers not for legal reasons, but for tax reasons. Many do not want to be responsible for understanding proper filing and withholding requirements.

So looking at that, it really comes down to having a tax ID number to tie your investment to, and it must remain viable for the entirety of the investment and all K-1s being issued.

Tomas Buedo · Answer

It should not be a problem, with a work visa you most likely have a SSN and other requirements (address, bank account...).

If you plan on returning home in 3 years and believe that the syndication exit will come at a later time I would consider investing in the syndication through an LLC. Check with a CPA if that has some tax consequences but since an LLC is a pass thru entity it should not. Even though it's foreigned owned (by you) the LLC will always be considered a "US entity" and you can keep receiving the quarterly payments into the US based LLC account.

Henry Zhu · Answer

I helped my mom, who is not a citizen or resident in the states, invest in a syndication a few years back. All we did was open a bank account for her, then she internationally wired the money into her own account. But it becomes tricky when you leave the states while having an active account in the US, because if there is anything you can't do on your mobile banking you are not able to just walk into a branch. It would be great if you have someone you can trust when you leave the states to deal with any issue that may arise with your bank account.

Alex Hunt · Answer

You can work with a non- QM lender to get a foreign national loan and own it yourself! With $205k to put down, I can have you approved to purchase $1 million in rentals. No need for tax returns or even a credit score in this case if you don't have one.

Jim Pellerin · Answer

@Victor Lee where are you from?

Basit Siddiqi · Answer

You will need to see if the syndication is generating ECI(Effectively connected income) or FDAP(Fixed Determinable, Annual, Periodic). If the answer is yes, you may still continue to have a US Tax return filing obligation going forward.You will be considered a non-resident alien for US tax purposes. Income that you earn from the US may be required to withholding requirements. This will be the mechanism that will force you to file the US tax returns.

Victor Lee · Answer

Thanks, guys! Truly appreciate the knowledge drop here.

Any issues with investing in a syndication while on a work visa?

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