U.S. investor path
- Rule 506(c), if applicable
- Accreditation verification
- Domestic funding
- U.S. tax documents
INTERNATIONAL INVESTORS
U.S. Multifamily Investing for International Investors
Learn how eligible international investors may access U.S. multifamily offerings, including subscription, identity verification, funding, reporting and cross-border tax considerations.
Built by immigrants
Dr. Julius Oni, Leslie Awasom, and Tenny Tolofari co-founded XSITE Capital after immigrating to the United States. Dr. Oni is an orthopedic surgeon and the firm’s chief executive. Leslie Awasom is chief operating officer. Tenny Tolofari, who came to America from Nigeria, leads acquisitions.
That history is why investors outside the United States have a page of their own. The sections below explain how an eligible investor reviews a subscription. They are not a recommendation.
Who may be eligible
A person outside the United States may be able to invest when that offering’s documents and applicable law allow it. A job title, a visa, or a country of residence does not by itself decide eligibility.
For many U.S. private offerings, accredited-investor status is established through income, net worth, or certain professional credentials. Income qualification generally means exceeding the threshold in each of the prior two years, with a reasonable expectation for the current year. The SEC’s accredited investor page states the tests. An international path may also require a non-U.S.-person certification, or another certification that offering specifies.
Recent offerings have generally started at $100,000. Minimums vary by offering. The offering documents state the figure.
The portfolio page reports $276 million of portfolio value and 1,422 apartments currently under management. Portfolio value is the aggregate purchase price plus capital improvements of properties currently under management.
U.S. and international paths
This diagram is illustrative of typical paths. It is not a photograph, and it is not a recommendation. The exact structure, including whether Rule 506(c) or Regulation S applies, is the one stated in that offering’s documents.
International investor path
- Regulation S, if applicable
- Non-U.S.-person certification
- International wire
- Cross-border tax documents
Underlying investment
The appropriate subscription path depends on the investor’s legal, tax and securities-law status—not only physical residence. XSITE and the investor’s advisors must confirm the appropriate path.
Eligibility can depend on non-U.S.-person status, whether the transaction occurs offshore, local solicitation rules, and other offering conditions. Regulation S does not simply mean “foreign investor.”
Where an offering uses more than one vehicle, those vehicles can differ in legal entities, tax treatment, withholding, subscription documents, transfer restrictions, reporting documents, and fees or administrative expenses. Where the documents say so, a parallel vehicle is intended to invest in the same underlying opportunity.
Subscription, identity, and source of funds
A subscription is completed in the way that offering describes, often electronically. Before funding, expect identity verification, anti-money-laundering review, and source-of-funds questions.
XSITE can provide the offering materials. The investor and the investor’s advisors review them. XSITE does not give legal or tax advice on those documents.
Funding, currency, and banking
International wires are a typical way to send a subscription. A U.S. bank account is not stated here as a requirement. The offering’s funding instructions control, and the investor’s bank may charge currency-conversion costs and wire fees.
Subscription amounts in XSITE offering materials are stated in U.S. dollars. Conversion from another currency, if any, is handled by the banks involved.
U.S. reporting and withholding
International investors may have U.S. filing, identification and withholding obligations, including obligations that arise without a matching cash distribution. Requirements vary by investor type, country, treaty status and offering structure. Prospective investors should obtain independent U.S. and home-country tax advice before subscribing. Consult your tax professional.
Foreign partners may face withholding on effectively connected taxable income even when there is no matching cash distribution. The IRS notes that partnership withholding can apply regardless of distributions. Form W-8BEN is generally for foreign individuals, while foreign entities may need different documentation such as Form W-8BEN-E. Those are examples, not a complete list. See the IRS notes on partnerships with foreign partners and on forms for foreign beneficial owners.
Reporting may include a Schedule K-1 and/or other withholding statements, as the offering provides. This page does not promise that every international structure issues a K-1.
Home-country legal and tax considerations
Home-country securities laws and tax laws may apply in addition to U.S. rules. An investor’s own advisors apply those rules to the person and the offering.
XSITE can provide offering materials for that review. XSITE does not interpret home-country law.
Risks, transfer limits, and liquidity
A private real estate interest is generally illiquid. Transfer can be restricted by the offering documents and by law. You may not be able to sell when you want, and value can fall. Debt, occupancy, and operations all matter.
Cross-border investors may also have estate-tax questions. This page does not give personal estate-tax advice. Nothing here is a guaranteed return.
Countries and investor types the documents allow
This page does not publish a list of countries XSITE can or cannot accept. Eligibility and accepted jurisdictions are confirmed during subscription, against that offering’s documents and applicable law. Some countries or investor types may not be accepted.
A foreign company or a trust is not approved or refused here. Whether that investor type can subscribe depends on the offering and must be confirmed. Materials can be provided for the investor’s advisors.
Questions before an international subscription
Can a non-U.S. person invest?
A non-U.S. person may be able to invest when that offering’s documents and applicable law allow it. The appropriate subscription path depends on the investor’s legal, tax and securities-law status—not only physical residence. XSITE and the investor’s advisors must confirm the appropriate path.
Which countries can XSITE currently accept?
This page does not list countries XSITE can or cannot accept. Eligibility and accepted jurisdictions are confirmed during subscription, against that offering’s documents and applicable law. Some countries or investor types may not be accepted.
Is a U.S. bank account required?
A U.S. bank account is not stated on this page as a requirement. International subscriptions are typically funded by wire from the investor’s bank, subject to identity, anti-money-laundering, and source-of-funds review. The offering’s funding instructions control.
Can a foreign company or trust invest?
It depends on the offering and must be confirmed. This page does not give a yes or a no for a foreign company or a trust. XSITE can provide the offering materials for the investor’s advisors to review.
Which tax forms might be issued?
Reporting may include a Schedule K-1 and/or other withholding statements, as the offering provides. Form W-8BEN is generally for foreign individuals. Foreign entities may need different documentation, such as Form W-8BEN-E. Those examples are not a complete list, and this page does not promise a particular form.
Can withholding exceed cash distributions?
It can. Foreign partners may face U.S. withholding on effectively connected taxable income even when there is no matching cash distribution. The IRS notes that partnership withholding can apply regardless of distributions. The amount, if any, depends on the investor and the offering.
Is an ITIN required?
An ITIN is not universally required. For some investors it is an identification question. Whether one is needed is addressed in the offering documents and with the investor’s own tax advisor.
Are international wires accepted?
International wires are a typical way to fund a subscription, subject to identity, anti-money-laundering, and source-of-funds review and to that offering’s funding instructions. The investor’s bank may charge wire fees.
Which currency is used?
Subscription amounts in XSITE offering materials are stated in U.S. dollars. An investor’s bank may convert from another currency. Conversion costs are set by the banks involved.
Can the investment be transferred?
A private real estate interest is generally illiquid. Transfer can be restricted by that offering’s documents and by law. You may not be able to sell when you want.
Does investing provide immigration or visa benefits?
No. Investing does not provide immigration or visa benefits.
Should investors use U.S. and home-country advisors?
Yes. Prospective investors should obtain independent U.S. and home-country legal and tax advice before subscribing. Consult your tax professional. XSITE can provide offering materials. XSITE does not give legal or tax advice.
Talk through the path on your terms
Read the process on this page, then ask the team for the offering materials your advisors should review.
What this page does not do
These notes are for information only. They are not an offer to sell, or a solicitation of an offer to buy, any security. Past performance does not predict future returns, and an investment can lose money. Nothing on this page is investment, legal, or tax advice. The offering documents govern.