Regarding Private Lending from Foreign Sources

[Vincent Park]

Hi everyone,

I am a beginning real estate investor with a question regarding private lending. 

I currently live and work 9-5 in Manhattan, where the cost of purchasing any home nearby is quite prohibitive. As I have a well paying job and a good credit score, I believe it will not be too difficult for me to qualify for a conventional loan. However, in order to come up with down payments, I will most likely need to tap into private lending resources.

As I come from oversees, a lot of my friends and family live outside of the US. I have a few people who have expressed interest in lending me money to fund my investments. While this would be quite beneficial, I wanted to make sure that I consider all legal/tax implications before proceeding.

I would like to ask advice from anyone on the forum who has either dealt with foreign private money, or is familiar of the legal/tax side of such transactions. Any advice would be extremely welcome.

Thanks,

Vincent