These days the immediacy of technology has made the world a lot smaller, and people from all over can choose to invest in places near and far. For international investors, real estate in the United States has become an attractive possibility, since the market in certain areas like Texas, New York, and Florida remain strong.
However, for many international investors, it can be intimidating to find properties to invest in, particularly from afar. Therefore, commercial real estate investment funds have become popular for these people, as it allows them to be confident that local professionals are handling the acquisition, management, and liquidation of properties.
That being said, not every international investor will be able to contribute to US real estate funds. For a fund to be able to accept international money they first have to file special documents with the Securities and Exchange Commission. This then allows the fund to solicit from international investors, but only those who reside in countries that are allowed to trade with the US without certain sanctions or regulations.
However, recent government acts have actually made it easier for international investors to acquire property in the United States and be subject to the same taxes as those imposed on US investors, as opposed to being considered a special class. Traditionally foreign investors were subject to major tax penalties upon the sale of property in the US, but these new measures seek to limit these responsibilities to what is typical for US investors.
The reason for this is that in the last ten years, international purchases of real estate have accounted for a significant portion of all US real estate activity. Since the market remains strong and construction continues, it goes without saying that this will remain an attractive form of investment for people abroad.