I'm with Will, buying at 85% is almost certainly a loser with holding and sale costs...Hard to blame the wholesaler, though.

If you incorporate an entity in the U.S.A. which is directly owned by the five of you, then you may still control when earnings are repatriated to Canada, but there will be a larger withholding by the IRS and, once received, the dividend will be taxed at your marginal tax rate (which may, or may not, be better than having it taxed at the corporate tax rate if you were using a CCPC.Once again:  The first thing your should do is find yourselves both an accountant and attorney with cross-border real estate experience, shell out a few hundred dollars and get an ownership structure which meets your present needs, but is capable of being evolved to meet your future requirements with a minimum tax burden.

French, what about that the quarterly taxes that are due from members to the irs for withholding?

@Jack B.Everyone's tax situation is different and for that reason - the title company will not withhold federal/state income taxes on your behalf and remit them to the federal government/state.One thing you may want to look at is if you are required to make estimated tax payments to avoid having to pay a penalty.Your accountant will be able to answer this question.

We are done with another flip.http://www.7156emeraldave.com/Escrow company is withholding Cal Firpta Withholding 3.33% Franchise Tax Board.

I am going to make the assumption that the other posters in this thread convinced you that you need to withhold more funds for repairs, vacancies, capex than in your initial post.  

In the event this is not sent to the manager, the manager may withhold from owners’ rents.

It's interesting how he deals with the lowest end of society but manages to withhold his integrity and credibility as a landlord. 

Fortunately in Texas tenants are liable for 3x the amount they withhold.

For those unfamiliar with this type of entity, it is a single LLC with holds multiple series under it.