Investing Foreign OPM in the United States

[Manny Alvarado]

I was born in Costa Rica (CR) but I live in the us since 1995 and became a US citizen.

I have been using a HML for my flips and earlier this year, after a few successful deals, I asked my HML to lower his rate from 15% to 12% and he said he could not do that because 12% is what he was paying for the money so there was no room for him to profit. That stock inside my head for ever and made me think of a business using OPM.

I have two friends in Costa Rica with access to high net worth individuals who trust them and have high interest in investing their money in the US but they do not know how nor have time to do so and we want to help them solve their problem, invest their money and make a profit in between. (I Sound like Grant Cardone. LOL)

We want to start a business in the US with OPM from CR. My two friends have the connections in CR to the money and I live in the US. I will be the deal finder/maker and share the profits with my two partners. Sounds like a good Plan so far.

I need your advice because I have no idea where to start to structure my business. I have done flips and rental property in the US using HDL and bank financing but this is a new opportunity.

My thought is I could allocate OPM with A few existing Hard Money Lenders but I have no Idea what legal implications that has or if it's even possible.

My ideas:

1 - Allocate foreign OPM at an existing HML at 10-12% Pay our CR investors 6-8% and our profit would be 4%.

2 - Use Foreign OPM for down payment to acquire rental properties.

3 - Use Foreign OPM instead of HML for BRRR or Flips.

Number 1 is my favorite idea.

I would appreciate your advice.. Thanks to all in advance.