Q: Can non-U.S. residents wholesale real estate in Texas and receive assignment fees abroad?
I live abroad and I'm interested in wholesaling real estate in Texas. Is it possible for non-U.S. residents to engage in this business? What kind of paperwork or legal requirements should I be aware of? Additionally, there may be situations where I enter into joint ventures (JVs) with other wholesalers who are U.S. citizens. If possible, are there any problems with title companies paying assignment fees to banks abroad or to non-U.S. residents?
A:
Most non-US citizens can buy and sell land and otherwise speculate on the same. However, if you are a Chinese National, or are from a "Terrorist State" country, that type of business is NOT available for you in Texas.
The key is to manage your properties and taxes correctly. Get a good Real Estate Attorney, and some solid financing, and you should be able to thrive.
LMK if this helps. Good Luck!
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (916) 704-3009
- View Profile
- Answered
A:
Yes, as a non-U.S. resident, you can legally engage in wholesaling real estate in Texas, though there are important legal and tax considerations to address. You will need to obtain an Individual Taxpayer Identification Number (ITIN) from the IRS since you don't qualify for a Social Security Number, and you should establish a proper business entity such as an LLC to conduct your wholesaling activities. Additionally, you must comply with all Texas real estate laws, including proper disclosures when marketing properties and ensuring all contracts are legally binding under Texas law.
Regarding payment of assignment fees to foreign bank accounts, this is technically possible but requires careful attention to international tax treaties and reporting requirements. Title companies can remit funds internationally, but they will likely require additional documentation and may withhold a percentage for U.S. taxes (typically 15% under FIRPTA regulations). Your joint ventures with U.S. citizens should be formalized through written agreements that clearly outline the distribution of profits, responsibilities, and liability protection.
For optimal tax efficiency and legal compliance, you should consider consulting with both a U.S. tax attorney familiar with international real estate transactions and a Texas real estate attorney. These professionals can help you navigate the complex reporting requirements such as FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act), which may apply to your situation when transferring funds between countries.
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
