The LLC does not have to be registered in the state the property is in - you can utilize a state with less expensive LLC costs - such as Arizona....The statement being quoted here is not totally true; the LLC does not have to be formed or created in the state where the property is, but usually it will have to be registered as a foreign LLC.

You would have to pay the initial costs to set up the LLC in the home state and then you would have to pay a foreign filing fee to register the LLC in the state you want to conduct business.

If it's registered elsewhere, it will need to be registered as a foreign entity in the state where it does business (additional paperwork and expenses).Your personal state income tax will be governed by the state where you live, regardless of where the LLC is established, registered or does business.

I'm just not sure what structure would be the best to use for foreign investments.

This is why certain foreign investors flee to United States.

I am currently in the process of becoming a "foreign entity" in Michigan but, I purchased the DLBA property as an individual.

My conclusion is that it IS realistic for continued price and rental increases for a few reasons: no buildable land, increasing population, a booming tourism industry, foreign buyers paying cash well over market value, and one of the only places on the island with great beaches, decent schools, and a real hospital.To test your theory, look at how your market performed 2007-2010.

The only all owner finance deals I work on in commercial is foreign to local investors who have a bunch of cash but for one reason or another can't currently get a regular loan.

Institutional and foreign money is still flowing into gateway cities, because of the scale, in NYC, you could spend 500m with out effecting the market.My persoanl goal is cashflow and cash preservation.  

Please let me know if you find a good lending option in Detroit for foreign nationals.Best,Leo.