I've been reading all the input from people on a few different threads about foreign investors and still am kinda murky on the issue. Obviously I need to consult a CPA and Lawyer, but currently I am trying to minimize all costs until that time comes given my financial situation. I was hoping someone here has some direct experience/input on my situation.

I live out here in CA and want to buy an investment property, but don't have the cash myself. I just got married to my wife, who is a diplomat and not a citizen of the US. The citizenship process takes 5 years so bare in mind that I am the only citizen. My wife's dad who lives in Israel wants to invest here, but I am stuck at step one in how to make this work. Is the LLC idea people have thrown out where he lends money to the entity make the most sense? I'm guessing he can't just give my wife the money and she buys something here since she is not a citizen. Would it be better if he gave me the money and I bought it under my own name? Trust is not an issue here at all. I just want to minimize the tax burden that would be paid by us (me and my wife) and him. I.E. in the US I think the maximum gift allowed tax-free per year is roughly $12k and anything over that I would be taxed on, which is why I'm thinking that gifting me the money isn't the best way to do this.

Thanks in advance for any input.