PROCESS AND GUIDELINES FOR FOREIGN NATIONALS INVESTING IN USA

[Mil Sanghvi]

Hi have access to and know high net worth individuals who are foreign nationals (non US citizens) that are interested in acquiring residential multifamily properties. (2-4 units or 5+ units). Most likely it will be a partnership between me and them. I am a US citizen.

What are the guidelines/ process for them to acquire real estate in the US? 

What are the tax implications, minimum investment period etc?

How would the financing of these properties work? or is better to pay cash and take a HELOC?

Thank you in advance

-MIL

[Azeez K.]

Hi @Mil Sanghvi

Good Question. Here is how you can fund your deals. Please consult with a legal professional and do your own due diligence. This is not a legal advice and please consult with a legal professional.

1. Set up an entity - LLC/S-Corp/C-corp/Trust based on consultation with a legal professional

2. Create an operating agreement with your private money partners 

3. In GA you will need to have 25% equity as a local partner to get financing from the banks. 

4. You can fund the money from your investors in India for down payment and take a loan. Don't go the HELOC route and keep business/personal separate

5. The banks will give you a loan based on your GA residency and your equity stake.

6. You can fund the down payment and banks will  finance the 75%

Here in Atlanta there is a good bank that deals with a lot of Indian nationals. It's not really that complicated. 

Good Luck!