EU citizen Investing in US

[alexrad]

Hi Everyone,

Wondering if we got any EU citizen here who might have experience in investing in US real estate?

My question is What is the best way to invest in US?
Through an entity (like LLC) ?
Or through an European based entity?
Offshore entity?
etc..

Appreciate for answers

 

[John]

Interesing question. I'd like to see an answer to this too.

 

[mjmccabe76]

An Honest Answer

It may not be exactly what it was meant for but I found a book that might work well for you. It is catered for Australian investor complete with ancedotal information on the right steps as well as mis-steps in investing property in NY State.

I can't post the link here but you can send me a private message for more information.

Thanks,

MJ

 

[romaniapromo]

One of the most effective types of diversification is geographical. Historical evidence suggests that spreading your investments between the UK and foreign markets can significantly reduce your risk, while possibly boosting your returns.

 

[PeterFleming]

Well...good question...i will say that invest in real estate and foreign markets can be a better option.

 

[oregon woodsmoke]

I am American, and I just hold my American properties as a single proprietor. An LLC gives some protection from liability, but it has to be carefully maintained. To me, it's just easier to keep adequate liability insurance and keep the maintenance done on my buildings so they are not in an unsafe condition.

I have no idea what sort of holding companies you might have available to you in Europe.

I suspect your chances of getting a mortgage are non-existance if the money isn't borrowed either in your own name, or in a corporation that is old enough to have established it's own credit rating and has adequate assets to cover the mortgage.

LLC (in the states) is transparent to taxes. You pay income tax like the LLC doesn't exist. Corporate taxes are very different and you need to get a good accountant who specializes in real estate to explain the ramifications to you.

My opinion: some of the places that are extremely cheap and heavily promoted in the States are not good places to invest. Look for a town that has jobs available for the local population and a sound economy. It's a big country and there are lots of really good places to own real estate. Avoid like the plague any place where most of the population is living on welfare.

 

[Spyglass]

Hi Alex,

Im a UK citizen who has invested in the US property for about 6 years. I have always invested in an LLC, which has on occasion been itself owned by a European entity. It depends on the amount you are investing as setting up complex structure costs money to establish and maintain.

So it depends primarily on the volume of business you are anticipating doing. If you decide to use a LLC then I would recommend considering Delaware as a good state to open your LLC, as it has attractive rate of corporation tax.
Investing in an US based LLC means you can deduct your property expenses off the income and it also means you can depreciate the value of the asset and also (i think) income over several years which will increase your IRR.

If you are buying a single asset/house or land then it is just as useful to use an LLC by providing you with limited liabilty should the unthinkable happen.

Lastly be careful of using the companies which appear when you google set up an llc as they tend to charge extortionate prices for something that is as simple as filling in a few forms and paying a nominal registration fee.

Hope this is of some help.

Mark

 

[cleondann]

I want to invest in UK. I know that UK is really a good country for overseas investors. But i m just want some suggestions from expert's here to know something to keep in mind. :creep:

 

[KofiLGS]

Similar to what other users posted, if you are a foreign citizen investing in the US make sure you protect yourself and know who you are investing with. An LLC is good for protection but not always necessary if you intend to occupy the property yourself.