I am working on starting a 10m$ equity fund from foreign investors.Thanks Vinod

In this case, if the property is in RI that's where I would form the LLC.If you were to form the LLC in Mass then you'd need to pay two states annually, Mass (state of formation) and RI (as a foreign entity), which would be double the cost.The only minor thing is that as an out of state owner you'll need 1) a registered agent in RI to be on file with the RI Secretary of State for any communications like annual report reminders, to receive service of process if you were to be sued, etc.; and 2) to register with the RI Secretary of State as an out of state landlord.If you used a RI attorney when you bought the property in RI, I'd inquire if they're willing to be the registered agent for the LLC, and in fact you might even want to use them to form the RI LLC too.If you don't already have a relationship with an RI attorney I can recommend a few, but if you don't have anyone trustworthy in RI who can act as registered agent then you might want to ask the prospective RI attorney if they're willing to be the resident agent before you pay them to form the LLC for you (some attorneys don't want to be bothered as you can get a lot of junk mail).All of the above is just my personal opinion and experience and what I'd do in your position as I understand it.

@Hai LocForeign investors have to be mindful of a couple things when investing in US real estate taxation.Is the income generated considered ECI(Effectively Connected Income), FDAP(Fixed, Determinable, Annual, Periodic), FIRPTA(Foreign Investment Real Property Tax Act).Is there a treaty between the US and your country?

@Jason Krick  well in our neck of the woods EM deposits are 17k  LOL... so its foreign to brokers in other markets. 

We want to learn more about regulations with borrowing to foreign investors.

The difference culturally between these cities and surrounding towns is quite stark to someone arriving from a major city or foreign country.

So, if you create an LLC in another state, you will need to register it as a foreign LLC in California.

You can have the entities in different states but some states require you file a foreign entity document so you have rights in the state so if you had to you could evict a tenant as an example.

You also have remember to report the fact that you even HAD a balance over 10k in a foreign country.

Can't have a foreign corp/LLC (like Utah) in CA?