Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago,

User Stats

2
Posts
0
Votes
Jason Yap
  • Investor
  • Los Angeles, CA
0
Votes |
2
Posts

Tax question: Foreigner USA property financing options ? In Chicago?

Jason Yap
  • Investor
  • Los Angeles, CA
Posted

Facts:

Am a foreign national, currently I own 4 properties in several countries through a friendly foreign lender (HSBC).

I Have recently reached the HSBC limit of 4 mortgages after a recent purchase of property.

I am now looking at my new acquisition for a property in Chicago.

3 questions:

1. Which lenders (in Chicago) is prepared to provide loans to foreign nationals at 60% LTV ratio. And what sort of interest rate? And terms?

2. In the event I am unable to get another US bank to provide financing, I may be able to source private lenders from overseas. The Overseas private lender will charge a touch higher interest rate than US lending given the loans would not be secured by mortgage over the property but via shareholders guarantee. In that case, Can private lenders interest costs be considered a tax deduction in the eyes of the IRS?

3. To ensure it is a legitimate tax deduction - what loan documents  between me and my overseas private lender are required to satisfy the IRS. And what other taxes are applicable to the overseas private lender?

4. I also have an llc set up. Instead of equity to fund the property, can you provide shareholders loans to the llc? A commercial interest rate would be charged by the shareholders to the llc for the loan that they are providing to the llc. I'm trying to reduce taxes payable by my llc by having shareholders loans count as an interest deduction. 

Any advice would be appreciated!

Thanks guys 

Jason

Loading replies...