One of the most historically proven asset classes is residential real estate located in the United States. The United States is a great place to invest in real estate but this can be a challenge for foreign nationals. Below are the steps needed for a foreign national to begin Real Estate Investing in the United States.
Step 1. Set up your U.S. LLC (limited liability corporation) in the state you plan to invest in. The LLC helps to protect you if you are sued for any reason. As a shareholder of an LLC is not personally liable for the actions of the LLC.
Step 2. Submit your EIN application to the IRS. After forming an LLC you will need to obtain an EIN, this is an Employer Identification Number which is unique to your company. It is the way taxes are tracked and paid for your U.S. company. You can apply for your EIN Here on the IRS Website. This is necessary to open a bank account in the United States in the name of your business.
Step 3. Set up your U.S. Bank account. Contact the bank you plan to work with for a complete list of requirements for that institution. Below is a list required by most U.S. Banks to open an account :
- Your EIN from the IRS (which you applied for in Step 2)
- Typically, you will need at least $1000 as an initial deposit to set up the account
- A notarized passport or license for each member translated into English
- An operating agreement for the LLC signed by all members of the LLC
Step 4. Go shopping for your property and enter escrow. The fun part! After you select a property you will submit a written offer and have an attorney or title company open escrow for you. This is the time for discovery of any potential defects in the Title or the property to be discovered.
Step 5. Wire funds to your U.S. Bank account. Once the property and title are clear you will need to fund your U.S. bank account in order to pay the title company for the property.
During the time you are setting all of this up you may also want to consider shopping for your property manager (see other posts) and applying for a registered agent service. These persons or entities will act as your boots on the ground. The can manage your LLC, bank account, receive mail and email and communicate with the owner and property manager. The entire process can take as little as 4 weeks.
Discount Property Investor is focused on providing bargain priced investment property to Real Estate Investors locally and internationally. We offer advice on managing rental property and rehab or fix and flip projects. As always please consult your professional financial planners, CPAs and Attorneys for personal advice. If you're looking to buy rental property deals below market value. Or income property for sale at a discount check out our current selection in the properties tab. Buy property the Discount Property Investor way!