Entity Structure - Real Estate Unit - Outside the U.S.

[Pat L.]

I'm a U.S. citizen/resident thinking about purchasing my first real estate unit outside of the U.S. We're probably going to buy in the Caribbean.

I want to figure out the best entity structure for me. Based on my initial research, I may have an International Business Corporation (IBC) that is held by a Limited Liability Company (LLC). But I'll certainly ask my CPA and get legal help to set up the best structure.

Have you had an international entity structure set up? Do you have any tips on setting this up effectively without breaking the bank on legal and other filing fees?

[Priti Donnelly]

Hi @Pat L. nice to meet you on BP!

Many investors are looking at diversifying their investment portfolios to foreign property. I am not sure what the prices are like in the Caribbean or the yield, but I did want to mention another avenue you might want to consider and compare. Japan is the second largest real estate investment property market in the world where you can find yield between 6% to 12% net pre-tax and at surprisingly low prices of $30K to $55K. Properties are also occupied for immediate cash flow. 

It looks like you have done your research. But if you want any information on the Japan property market, including the process, do let me know. 

Good luck!