US Citizen with Foreigner as a partner

[Abhimanyu Aditya]

I am a US citizen. My parent is an Indian citizen. She has some money she wants to invest in the US in a real estate condos we can rent out.

She is happy to have everything go through me, i.e. she transfers the money to me, then I buy the property and earn the rental income. The only request she has is that she wants to be on the title or in the LLC or part/full owner of the holding structure. This is mostly so she "feels" secure.

Ideally, I want to setup a structure where I can, from a tax and operational point of view, operate as would a US citizen solely investing for themselves and reap all of the advantages offered to us from this point of view. But, with this added requirement that somewhere my parent's name is there so they feel all right about it.

For example, if we were to establish an LLC where we are 50-50 partners but in the operating agreement we make it so that all profit distribution comes to me (as compensation for operating the properties for example). I believe this is possible. I assume under this scheme the standard tax deductions such as depreciation, deductions etc. would still apply.

To keep things simple, we can assume cash purchase (no mortgage necessary). To make things interesting, I am curious how I could apply for a DSCR loan against my credit rating and SSN but for the LLC.

[Doug Smith]

Lenders like us do DSCR loans with "Foreign National" guarantors for a bit lower LTV. That being said, you're a citizen, so many of the programs won't be an issue for you. I would need to look closer at the guidelines to see if just one owner of the LLC is classified as a Foreign National, but I suspect you should be good as you're a citizen...the same would be true for those with a US visa in most instances.