International lending - tax and legal implications

[Arianne L.]

Hello BP community! I have relatives who have expressed interest in becoming private lenders for our real estate business. The complicated thing is, they are based in different countries. Australia, New Zealand, Saudi Arabia and the Philippines. I have done some preliminary reading but would like to know if someone has more experience in international lending/borrowing and could provide their insight. 

1) What are the tax implications for the US side? Someone mentioned that the individuals could file a US tax return vs the 28% withholding. 

2) Is there anything specific I need to consider with regards to the SEC

3) Any other pitfalls I might run into?

4) Do you have any general experiences you can share about the process?

Thank you very much for taking the time to provide your insight. It is greatly appreciated!