From the advice of an estate planner here in NZ I have been made aware some potentially problematic tax laws for NZ Tax Residents who have foreign income. 

I understand that whenever an entity does "business" in another state, it has to file additional paperwork with that state to make a "foreign entity". 

What happens if the speculation and foreign money fueling the Bay Area bubble is larger than anyone expected? 

The first thing I tell them is that there are very few, if any, lending options for foreign nationals buying US real estate.

The local branch probably wont have a clue about foreign mortgage loans.

As I hinted in my previous reply, I believe it's just because Puerto Rico doesn't have the deep pockets to match Mexico's and the Dominican Republic's colossal investments in infrastructure and marketing.As to the currency aspect, yes, Americans don't have any foreign currency risk when investing in Puerto Rico.

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

Quote from @Clinton Bolton: good day everyoneIm a foreign property investor and have been looking into tapping into the US market for quiet some time now.

Account ClosedMost tax attorney's I know specialize in the followingRepresent US taxpayers in regards to foreign assets that have no been disclosed to the IRS on past tax returnsSubstantiate Transfer pricing costs between countrtiesYou likely don't want a Tax attorney for real estate activities.A real estate attorney should be able to do the following for youreview a purchase/sale of real estate agreementcreate an agreement for an entityconsult you on asset protectionevict a tenantA CPA should be able to do the following for youprovide tax strategiescomplete your tax compliance which provides you comfort that your return is prepared accurately.bookkeepingbusiness consulting/budgeting

Without it, there's no guaranteed legal status, which could lead to being forced to leave the U.S. and potentially manage property from abroad—a complex and often costly endeavor.Real Estate Ownership and Rentals as a Non-Resident: If you do decide to purchase property and then move abroad, you can keep it as an investment, but it requires navigating tax regulations specific to non-resident foreign property owners.