Posted by blogger on July 22, 2009 at 12:50:47:
How about buying & flipping right where you are?
Pretty nutty IMHO to be trying this in a foreign country where there’ll be lots of sharks just waiting for your fresh blood.
Flipping US properties from Australia - Posted by Zeev B
Posted by Zeev B on July 20, 2009 at 03:02:39:
Hi there all!, I am an Australian who wishes to start flipping US properties to rehabbers in the US but am unsure of the legality of doing so as a foreigner. Firstly, I do not know whether I have to be physically present in the US to complete the deal. Secondly, I do not know what laws exist in the US regarding non-US citizens flipping US property. I know where to find great cosmetically challenged yet structurally sound properties that are great for this type of wholesale flipping and have a good potential investor database in the US, but am still unsure of the legalities involved. Any help regarding this issue will be greatly appreciated!
Peace!
Withholding rate may have changed - Posted by AlewCo
Posted by AlewCo on August 01, 2009 at 18:49:46:
From what I can skim through the current IRS document (IRS web site), the withholding rate for non-resident alien may have changed recently.
It may now be the 30% of the proceedings (that is, the money that would go to the seller at the closing. i.e., the 30% of the sale price, minus all expenses including the mortgage balance.) for real estate sales by a non-resident alien.
Please consult the tax professional for the current withholding rate.
Re: Flipping US properties from Australia - Posted by AlexCO
Posted by AlexCO on July 29, 2009 at 12:21:53:
My relatives are non-US citizen, live outside USA and hold several US properties. So, …
> I do not know whether I have to be physically present in the US to complete the deal.
No, you don’t have to be physically present in the US to complete the deal. You will need to sign on the closing doc in front of the notary service approved by the US escrow companies/real estate lawyers. If you can not find one in your country, most American embassys and consulate generals offer notary services.
>I do not know what laws exist in the US regarding non-US citizens flipping US property.
All laws regarding selling the real estate is the same both for US citizen and non-citizen.
There’s a separate federal tax law regarding the withholding of the proceeds. A 10 or 20% of the sales price (not the profit) should be withheld by the escrow company and be paid to IRS (US federal tax bureau) on your behalf.
You can get the refund of this money by filing the annual “US tax return for nonresident” between January and April of the following year if you think you are entitled to do so.