Alxs

Hello folks...

Here is my situation.

a) I am a UK citizen, I visit USA quite regularly...

b) I have a Bank of America account (would you believe).

c) I have never worked in USA nor do I intend to. I don't have a US national insurance number or whatever out there.

d) I have a friend living in California who intends to buy a house.

e) I would lend say $50,000 to buy a share of the deed of the house which is written on my name.

f) I would intend to stay in the house say 3 months a year on a tourist VISA.

g) When house is sold I intend to get a share of the money back or reinvest or whatever...

Questions

* Do you have any advise on how to do this?

* Would US immigration view me in a bad light if my name is on the deed?

* Would I get screwed in tax scenarios when I buy or decide to sell up?

Just treading the waters.
Thanks very much in advance.

sir_eccles

Do you actually have a visa (lower case)? If you are otherwise eligible for the vwp you are unlikely to get a b2. Vwp is 90 days not three months.

There is nothing wrong with owning property but yes you may get in trouble with owning property as cbp may view it as immigrant intent.

You will probably get hit hard with taxes because it wont be your primary residence.

Alxs

Hi sir eccles

No I intend to come via vwp (90 days as you say). I haven't applied for vwp recently (last time I was in the states was over a year ago on vwp). From what you are saying I assume it's unlikely I could get a visa over 90 days (B2).

Any ideas what taxes am I going to be hit with? Has anybody done this? Is this a mad thing to do if I'm regularly visiting the states on this basis?

Thanks

Pulaski

To achieve what you want you could be a co-owner, which would put you on the hook in the event of default, and you risk losing everything, OR you could be a second lender, and register a second mortgage on the property. In the event of default you would get nothing until the primary lender, presumably a bank, got all their money back, and so you risk losing everything.

In short, what you want is certainly possible, but is fraught with risk no matter which way you structure it. You need advice from an experienced real estate attorney before you commit to anything.

Alxs

Hmmm or maybe just do a straightforward loan to the home owner.... By the way the person who would own the majority of the property is a US citizen to complicate matters further...

Jerseygirl

I would think very long and hard into going into such an arrangement with a friend...especially when the friend and property are in another country

Hotscot

I would advise against this plan.
Friends/cash/business/property don't mix very well. Far too many variables and different expectations.
Also, sounds good on paper but may not in practice.

For example you want to sell, he doesn't.
For example he thinks he's put more "effort" or "assets" into the house and wants more of the profits, if there are any.

Stay away from this plan.

And $50,000 to invest. Better than nothing but it's not a lot. Various fees, maintenance/running costs/taxes can easily eat up a large percentage of that.

Might you consider stashing the cash into an ISA for example, or using it as a down payment for a property where you currently live? It's your money, you should keep control of it.

Alxs

As you can see on original post.... it's a lifestyle choice as well....
$50,000 personal loan (not against any property) may fare better....
Anyway let's just assume I'm doing this... I appreciate the advice thanks..
Any more takers?

Hotscot

Well you've been advised already that yes, you could get in trouble with immigration and yes, you could get screwed on taxes.

And you're still going ahead.

Hmmm. Good luck with that.

Alxs

I think you missed the bit where I wrote "Let's assume". So obviously this is a scenario I am playing...

Anyway I was thanking you for your advice and asking what other people think...

Maybe some people have actually done this or know the specific logistics ins and outs, more advise the better, and maybe somebody might have an idea that nobody has actually thought of, and yes I get the "don't do it" advice... much appreciated thankyou...

Cheers...

Hotscot

Well, specifically, what do you want to know?

Many of us have experience in buying property. Including me.
Many of us have experience in business. Including me.

It's not difficult buying a property.
It's not difficult drawing up a legal agreement.
However, even those initial activities could eat up a large chunk of your investment before you own any bricks and mortar. $50,000 is not much money at all.

Then further to that there are many variable that people here can comment on, that may or may not apply to you. As has been indicated, the unknowns are fraught with risk.

This is not a good idea. I don't think anyone will tell you it's a good idea. It is simply too risky.

However if you feel it's worth the risk to be barred from the U.S, or worth the risk to not only lose all your money but to also incur massive debts then forge on.

But again, no-one can here can tell you what steps you need to take to eliminate all risks.

Alxs

Indeed and thanks for the advice.... I'm just looking for the advice on the scenario here as per original post. Again I do appreciate the posts and advice....

Hotscot

* Do you have any advise on how to do this?
Draw up a legal agreement with your friend, via a lawyer. Find a property you like. Find a realtor. Buy it. (lots of fees.)

* Would US immigration view me in a bad light if my name is on the deed?
Maybe yes, maybe no. Not predictable.

* Would I get screwed in tax scenarios when I buy or decide to sell up?
Possibly.


What else would you like to know?
(I'm not being smug.)

Sally Redux

Is the idea to get a good return on an investment or a just a convenient holiday home? The market is very up and down here, as others have said there will be costs associated with property tax and maintenance, no guarantee of making a profit.

If it's a kind of timeshare, maybe, not sure how well that would work.

Alxs

I guess it's a convenient holiday home mainly... If I make the money back and a bit more then good... The arrangements about staying there are nothing to worry about.