Canadian Capital Partner for flips & investments - how to structure?!

[Dakota Mivshek]

Hi there. I have a quite ready & willing capital partner who is a Canadian citizen. Actually a small group of Canadians. If we were to partner in such a way that included them providing capital and our team doing the work here in the US, what would be a logical way to go about this from a business entity perspective? 

Work in the US will primarily include fix & flips, as well as, some potential long term buy and holds. Lending will be Hard Money in most all cases or all cash. 

[Jude Campbell]

The business entity, whether an LP or LLC, can originate from Canada if the investors already have one established. Alternatively, it can be set up in the US if there isn't a pre-existing entity.

American lenders are reluctant towards Canadian personal income for debt financing but an existing LP or LLC with a relatively consistent cash flow can be more appealing to them.

It might also be advisable to keep two separate entities if they're the capital partner & have the other entity funnel a % of profit (predetermined) to you, like a fee with a retainer basis. 

Given the complexities of cross-border transactions, I'd look to both a cross-border attorney and an accountant.