I have some clients that are interested in looking at Condo/Townhouses in Houston as an investment, but I'm not sure what to recommend they withhold as Cap Ex from their cashflow when running the numbers.

Hi everybody.I have a question on the tax/legal side here.Does an LLC created in the United States under the law of the U.S. and the any state, whose managers/members are foreign individuals, is subject to the FIRTPA withholding when selling a U.S. real estate property ?

If you have another exit strategy that you'd be happy enough with - holding on to it for a number of years instead of getting your funds back on your projected exit timeline - then that provides some risk reduction.

This is good - let the market work without government intervention, and without the NAR withholding every detail about a house and essentially lobbying to maintain 90% of this career field

You send it to your property manager.IRS Form W-8ECIIRS Form W-8ECI InstructionsBy filing Form W-8ECI foreign investors eliminate the mandatory 30% tax withholding as it notifies the property manager (and the IRS) the foreign investor will be filing annual tax returns to report their income and expenses related to the rental property.

Sometimes owners are vindictive and will withhold too much.

Hard money payoff is around $63K and we put about $80K (with holding costs) into it. 

He did say that better returns come with holding a portfolio of more properties.

They withhold the information on the deal until a week prior to the release of the deal so that you precisely don't have the time to do your own due diligence.

Some people are really comfortable with holding properties that break even for a time.