US Real Estate Investing for Foreign Nationals
12x12REI helps international investors access Houston real estate opportunities with guidance on financing, investment structure, and market strategy.
Can Non-US Citizens Legally Invest in US Real Estate?
Yes. There is no US law that prohibits non-US citizens including non-residents from purchasing, owning, or investing in real estate in the United States. Foreign nationals from any country can legally own property in the US, whether as an individual or through a US-based business entity such as an LLC.
There are no citizenship or residency requirements to purchase real estate in Texas. No visa is required to own property. Non-US citizens who invest in US real estate do have specific tax obligations most importantly FIRPTA, which applies when they sell but those obligations do not prevent investment. They simply require proper planning.
But most real estate companies in Houston are not set up to help you navigate the specific challenges of investing as a foreign national. They assume you have a US credit history, a domestic bank account, and the ability to manage a property from a local address. Those assumptions exclude a large and growing population of South American and Latin American investors who have the capital, the intent, and the motivation to invest - but need a partner who understands their situation.
You do not need a green card, a US visa, or US citizenship to purchase real estate in Texas. You need the right legal structure, the right financing approach, and the right local team all of which 12x12REI can help you establish.
What Visa or Immigration Status Do You Need to Invest in US Real Estate?
None. The ownership of US real estate is not tied to immigration status. A foreign national living outside the United States can own property here without ever visiting or holding any type of US visa.
However, if you want to visit your property, manage it personally, or participate in renovation work, the appropriate visa for those activities is separate from the property ownership question. For most passive investors who invest through the 12x12REI capital fund, they never need to visit the property at all the entire investment is managed remotely through our team.
How Foreign Nationals Finance US Real Estate Investments
Foreign National Mortgages
Foreign national mortgage programs are specifically designed for non-US citizens who want to purchase investment properties in the US. These loans typically require a larger down payment usually 25 to 35 percent of the purchase price and documentation of income or assets in your home country. Some programs do not require US credit history at all.
12x12REI evaluates foreign national mortgage requests on a case-by-case basis. Contact us with your property details, your available capital, and your country of residence to discuss current program availability.
ITIN Loans
An ITIN Individual Taxpayer Identification Number is a tax processing number issued by the IRS to individuals who are not eligible for a Social Security number. Foreign nationals can apply for an ITIN from the IRS, and many US lenders offer ITIN loans for real estate investors who have an ITIN but no Social Security number.
ITIN loans for real estate investors typically require a solid payment history, a meaningful down payment, and documentation of income or assets. They are one of the most accessible financing paths for Latin American investors who live outside the US but want to purchase property here directly.
DSCR Loans
DSCR loans Debt Service Coverage Ratio loans are among the most accessible financing options for foreign national investors because they qualify based on the rental income the property generates, not the borrower's personal income. A foreign national who can document the rental income of a property or the market rental rate for a comparable property can often qualify for a DSCR loan in Texas even without US credit history.
Foreign national DSCR loans typically require a down payment of 25 to 35 percent and some form of financial documentation from your home country. 12x12REI offers DSCR loans for foreign national investors in Houston. See our DSCR Loans page for full details.
Hard Money Loans
Hard money loans from 12x12REI are asset-based the property's value and the deal's exit strategy are the primary qualification factors. Foreign nationals can access 12x12REI hard money loans for fix-and-flip deals in Houston. A US-based entity (LLC) is typically required to close the loan. We guide investors through that entity setup as part of our onboarding process.
Passive Investing - The Simplest Path
For investors who want Houston real estate returns without the complexity of direct property ownership, passive investing through the 12x12REI capital fund is the most straightforward option. You invest capital into our deal pipeline. We manage everything. You receive returns when deals close without needing a US mortgage, a US bank account as the primary transaction account, or any involvement in the physical management of the property.
This is the most popular option for our South American and Latin American investor clients who are investing from abroad for the first time.
The Legal Structure Investing Through a US LLC as a Foreign National
One of the most important decisions for a foreign national investing in US real estate is whether to purchase in your own name or through a US-based legal entity: typically an LLC (Limited Liability Company).
Most experienced investors: both US citizens and foreign nationals: invest through an LLC for three reasons:
- Liability protection: the LLC separates your personal assets from the investment property
- Tax flexibility: an LLC can elect different tax treatments depending on your situation and country of residence
- Financing access: some DSCR and hard money loan programs require the borrower to be a US-based LLC rather than an individual foreign national
Forming a US LLC as a foreign national is straightforward. Texas allows non-US citizens to form and own LLCs. You do not need to be a US resident to be an LLC member. The LLC requires a registered agent in Texas, an operating agreement, and an EIN (Employer Identification Number) from the IRS: which you can obtain without a Social Security number.
12x12REI works with a network of attorneys and legal professionals experienced in helping foreign national investors set up the proper US business structure for real estate investing. We can connect you with the right resources during your onboarding process.
Taxes for Foreign Investors
Tax obligations are one of the most common concerns for international investors considering US real estate. Here is a plain-English overview of the key tax considerations. We strongly recommend working with a qualified US tax professional or international tax attorney for your specific situation.
FIRPTA - FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT
FIRPTA is the most important tax rule for foreign national real estate investors to understand. When a non-US citizen sells a US real property interest, the buyer is required to withhold 15 percent of the gross sale price and remit it to the IRS as a prepayment of the seller's US capital gains tax. This does not mean you pay 15 percent in taxes - it means 15 percent is withheld at closing and applied to your eventual tax liability. If your actual tax is lower than the withheld amount, you receive a refund when you file. A qualified US tax professional can help you reduce or eliminate the FIRPTA withholding in advance if your tax liability is below 15 percent of the sale price.
RENTAL INCOME TAX FOR FOREIGN NATIONALS
Rental income earned by a foreign national on a US property is subject to US income tax. The standard withholding rate is 30 percent of gross rental income - but most foreign national investors elect to be taxed as a US business (by filing a tax treaty election or by operating through a US LLC), which allows them to deduct expenses and pay tax only on net rental income. This election typically results in a significantly lower effective tax rate.
TAX TREATIES
The United States has tax treaties with many countries - including Mexico, Colombia, and other Latin American nations - that affect how investment income is taxed for nationals of those countries. The specifics depend on your country of residence and the type of income. A US-based international tax attorney can identify treaty benefits that reduce your US tax burden.
Tax guidance note: Nothing on this page constitutes tax or legal advice. Foreign national investors should work with a qualified US tax professional and a cross-border attorney familiar with the laws of both the United States and their home country before making any investment decision.
How 12x12REI Supports You
Most real estate companies in Houston are not equipped to work with investors from outside the United States. 12x12REI is different. Here is specifically how we support international and South American investors.
Frequently Asked Questions
International Investors
Here are the answers to the most common questions we receive from South American and Latin American
investors regarding US real estate.
Can non-US citizens legally invest in real estate in the United States?
Yes. There is no US law prohibiting non-US citizens from purchasing or investing in real estate in the United States. Foreign nationals can own property individually or through a US-based LLC regardless of their citizenship, residency status, or immigration status. Specific tax obligations apply to non-US citizen investors particularly FIRPTA upon sale but these do not prevent investment.
What type of visa or immigration status is needed to invest in US real estate?
None. No visa, green card, or US residency is required to own real estate in the United States. Non-US citizens living in their home country can purchase, own, and profit from US real estate without any US immigration status. If you want to physically visit or work on a property, the appropriate visitor or work visa applies but property ownership itself has no immigration requirement.
Can I get a mortgage or loan as a foreign national investor in Texas?
Yes. Several financing options are available for foreign national real estate investors in Texas, including foreign national mortgage programs, ITIN loans, foreign national DSCR loans, and hard money loans. These programs typically require a larger down payment than conventional financing and documentation of income or assets. 12x12REI evaluates foreign national loan requests individually contact us to discuss your options.
What is an ITIN loan and can I use it to purchase investment property?
An ITIN loan is a mortgage or real estate loan that uses an Individual Taxpayer Identification Number issued by the IRS to non-Social Security eligible individuals instead of a Social Security number for qualification. Foreign national investors with an ITIN can use ITIN loans to purchase investment properties in Texas. These loans typically require a larger down payment and a documented payment history.
Do I need a US credit score to invest in US real estate?
Not necessarily. DSCR loans and hard money loans from 12x12REI can be evaluated without US credit history in many cases. Passive investing through our capital fund requires no US credit at all. Foreign national mortgage and ITIN loan programs may accept international credit documentation in lieu of a US credit score. We evaluate each investor's situation individually.
What taxes apply to foreign investors who sell US real estate FIRPTA?
FIRPTA the Foreign Investment in Real Property Tax Act requires the buyer of a US property to withhold 15 percent of the gross sale price from a foreign national seller and remit it to the IRS. This is a prepayment toward the seller's US capital gains tax, not an additional tax. If your actual tax liability is lower than the withheld amount, you receive a refund. A qualified US tax professional can help you plan for FIRPTA and reduce withholding in advance where applicable.
Can I invest in US real estate through an LLC as a foreign citizen?
Yes. Foreign nationals can form and own a US LLC in Texas. The LLC can hold real estate, obtain financing, and conduct business in the US. Operating through an LLC provides liability protection, potential tax advantages, and access to financing programs that require a US-based borrower entity. 12x12REI can connect you with attorneys and CPAs who specialize in LLC formation for foreign national real estate investors.
Can South American and Latin American investors work with 12x12REI?
Yes. 12x12REI actively works with investors from Colombia, Venezuela, Mexico, Brazil, Argentina, and other South American and Latin American countries. We offer passive investing, direct property purchase through DSCR and hard money loans, and coaching support. Spanish-language assistance is available. Book a free strategy call to discuss your situation.
Does 12x12REI have Spanish-speaking staff to assist international investors?
Yes. 12x12REI has Spanish-speaking team members available to assist investors from Latin America and South America. We understand that navigating US real estate from abroad in a second language, with unfamiliar legal and financial systems is challenging. We are set up to support you through that process in your language.
What is the best real estate investment strategy for a non-US citizen?
For most non-US citizens investing from abroad for the first time, passive investing through the 12x12REI capital fund is the simplest starting point no financing complexity, no property management, and no requirement to visit the US. For investors who want direct property ownership, DSCR loans with a Texas LLC structure are the most accessible financing path. Book a strategy call and we will walk you through both options based on your capital, your timeline, and your goals.
Ready to Invest from Abroad?
12x12REI helps international investors access Houston real estate opportunities with guidance on financing, investment structure, and market strategy backed by 250+ completed deals since 2013.
Book a free strategy call to discuss your investment goals and learn how foreign nationals can invest in the Houston market with confidence.
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