Limitations in RE investing on a work visa

[Christoph Krekeler]

I am currently on a non-immigrant work visa in the US working as a financial analyst and am looking to invest in real estate on the side.

Having done some research I know my options are limited as I am not a permanent resident. On a work visa one is not allowed to earn ordinary/active income other than income from the visa-related job. Passive income, however, is okay.

It seems wholesaling or flipping is not an option as this is considered ordinary income.

Buy and hold/rentals are an option but require a large amount of cash (>25% down payment + possible repair) for every deal. Banks also have restrictions on lending to non-permanent residents. Maybe 1 or 2 deals are possible with that option.

Lastly, BRRRR investing seems like an option that could work but many HML lenders only lend to entities. I can form an LLC but due to the visa cannot actively manage or be part of day-to-day operations and have to be a passive member.

Is there another entity structure that can be used? Or other ways how a Brrrr of flip would be compliant?

Any ideas on how to proceed? Any specialists out there that have experience with such special situation or any investors that are currently also in the same situation?

[Taylor L.]

Originally posted by @Christoph Krekeler:

@Taylor L. Thanks for your input. Haven’t really looked into note investing yet but I will.

That’s right. Syndications will be a possible option. How did you go about syndications when you started out? Did you mainly look for local contacts?

 I started by going to large in-person syndication events, which would be tough to do right now! Right now you can network on BiggerPockets and on webinars hosted by syndicators. There are a number of them, follow guys like @Yonah Weiss (he's always doing great events) and look on the BP events section, that should get you started