How buying a U.S.
apartment building works

Yes. U.S. citizenship, permanent residency, and a visa are not required to acquire real property. There is no immigration requirement attached to ownership itself.

Tax treatment and fund transfers do work differently than they do for U.S. residents. Setting up the structure around the purchase usually takes longer than the purchase itself. It is worth doing that work before rushing into a contract.

Whether an individual or an LLC makes sense depends on your situation. Four considerations usually decide it.

• Liability separation — keeping problems at the building from reaching personal assets
• Taxes — filing treatment and rates differ
• Estate planning — whether you intend to pass it to children
• Co-investment — whether others are buying with you

An LLC brings added administration and filing obligations. It is not automatically the better choice. Decide this with an accountant and attorney; we organize the property-side information that discussion needs.

Look at two separate moments.

While holding — rental income is reportable in the U.S. Depreciation, interest expense, and operating costs are generally deductible, so taxable income is typically well below gross rent.

On sale — under FIRPTA, a portion of the sale proceeds may be withheld. This is a prepayment rather than the final tax; it is reconciled through filing.

If you are taxed elsewhere as well, a treaty may address double taxation and U.S. tax paid may be creditable at home. That needs advisors in both countries.

Outcomes vary widely by individual circumstance. The above is meant to help you understand the structure.

Purchase funds go from your bank directly into escrow — a neutral, separately licensed third party. They never pass through the broker or any personal account.

Either side will be asked to document the source of funds. Assembling this during escrow delays closings, so it is better handled before you commit to a purchase.

If the money is coming from abroad, add lead time: your own country's reporting requirements and the exchange rate both move inside the 30 to 60 days from contract to closing.

Commercial loan programs for foreign nationals exist, though terms differ from those for U.S. residents.

• Down payment requirements are generally higher
• Without U.S. credit history, asset documentation carries more weight
• Rates and terms depend heavily on the building's income

Five units and above is treated as commercial financing, where underwriting centers on what the building earns rather than on the borrower personally. The rent roll effectively sets the loan terms.

After the contract is signed, you have a defined period to verify the building. Problems found during it can support a price adjustment or cancellation.

• Rent roll — actual rent per unit, lease terms, delinquencies
• Operating expenses — two to three years of actual spending
• Physical inspection — structure, plumbing, electrical, roof
• Municipal records — open violations, permit history
• Rent regulation status — whether the RSO applies, which governs future increases

This is the stage where the seller's numbers get verified rather than accepted. We guide the process.

Total Commercial Inc handles it directly. The firm that brokered the purchase stays on to manage it.

That covers rent collection, tenant relations and lease administration, maintenance coordination, and accounting and reporting. The goal is that the building runs whether or not you are in the country.

Scope and terms depend on the size of the building and are agreed during consultation.

When the broker and the manager are different firms, responsibility diffuses the moment something goes wrong. Tenant moves out, pipe bursts, rent comes in late — there is one number to call.