flipping real estate on H1B

realdesi16

Registered Users (C)
#1
Guys,
I need desperate help on this. I am on H1B currently and I have I-140 approved (EB3 - cannot file 485 because of retrogression but that is another matter). I own one rental property. Also I have flipped couple of houses and made profit. Do you guys think this is aganist the law ? Is this going to adversely affect my green card application ? My attorney told me that I need to form some kind of corporation . Is he right ? I have heard that when they call for the green card interview, they ask for tax returns. what are the chances that somebody is called for the interview ? I am with the same company from the beginning that filed my green card. I did not have any other jobs.

Any help will be really appreciated. I am ready to stop this if its going to affect my green card in any way. By the way this was just an honest mistake. I thought that real estate investments were just like stocks.

thanks
 

businesswoman

Registered Users (C)
#2
From what I have understood from your posting, you own real estate that you rent- right. If that's the case, you don't have to worry you will report it as rental income and it has nothing to do with green card.

Secondly, I am not sure sure why your attorney has suggested you to inccorporate and move the property in to that, because when you move assets into your corporation it means you recognize gain on your personal side, which you certainly don't want. Also, one of the main reasons you want to incorporate is protect your personal assets. Placing your assets in the Corporation is certainly not a good idea.

Limited Liability company is certainly a good idea, but again it depends on the State you are located in.

I hope this info helps you.
 

realdesi16

Registered Users (C)
#3
Thanks JoeF and businesswoman for your replies.
I am going to stop the flipping. By the way according to JoeF there is less likelihood that somebody on employment-based green card is called for interview, so its possible that I may get away with this. right ?
If they ask for tax returns, is it at the time of filing 485 or during the processing of 485 or at the interview time ?
If they ask for tax returns during the interview what should be my explanation ?
Thanks for all the replies.
 

businesswoman

Registered Users (C)
#4
I don't think buying and selling properties is a issue with GC. All you are doing is selling investment property.
Could you explain what are you worried abt?
 

realdesi16

Registered Users (C)
#5
So Joe what you are saying is that after I get my EAD, flipping is legal? But then I would be also on H1B at that point so then that makes it not legal.
By the way according to my lawyer day-trading on stocks is not business and so is OK. I dont understand all this at all. Is not real estate also a passive investment ? Can somebody point me to the exact wording of the immigration rules that differentiates between stock investments and real estate investments and that real estate investment is considered as business.
 

realdesi16

Registered Users (C)
#6
So Joe what you are saying is that after I get my EAD, flipping is legal? But then I would be also on H1B at that point so then that makes it not legal.

By the way according to my lawyer day-trading on stocks is not business and so is OK. Also he told me that besides flipping even having rental real estate is considered as business.
I dont understand all this at all. Is not real estate also a passive investment ? Can somebody point me to the exact wording of the immigration rules that differentiates between stock investments and real estate investments and that real estate investment is considered as business.
 

megaptera

Registered Users (C)
#7
JoeF,

Do you know of a good online resource where I can look through the CIS memos? Or does it exist only in printed form? Any relevant info is appreciated.
 

realdesi16

Registered Users (C)
#8
Joe and businesswoman I need your help in figuring out this. Since I cannot do real estate flipping on H1, my real estate agent suggested me to become a shareholder of either a C or S real estate corporation. The other members of this corporation would be US citizens or PR and one of them would be the managing director who would do the day-to-day management for the firm. He told me that the income that would be generated by flipping real estate as a part of this corporation would be shown as dividends on my personal tax returns. Is he right ? Am I really safe doing this ?

I read somewhere that an H1B visa holder cannot be a shareholder of a S-corporation but can be for C-corporation. Is that right ? If yes, investing as a part of this C-corporation by becoming a shareholder entitles me to show the dividend income as passive income on the tax return. Is this right ? Please help me out. This is very important. Also tell me how confident you are of the authenticity of your opinion on this.
 

indyanguy

Registered Users (C)
#9
Unrelated question.

Joe, you said:

"They have bigger fish to fry. But, if you happen to get on their radar for something else, they may look into everything. That has happened, for example with failure to file an address change form (AR-11). In particular after 9/11, they got much stricter."

On what visa status do we have to file the address change form? Is it only on F1?

Sorry for hijackin the thread
 
#10
I am wondering if any one has a definitive answer on whether it is legal to "flip" real estate on a H1B visa?

By "Flip" I mean, putting a house under contract from the seller, then finding another buyer for it and doing a back to back closing. what that means is that the property will only be held by me technically for a few hours or days.

The above thread does not seem to have an answer around this?

Also, if I do some marketing to generate investment leads, is that legal also?

thanks!
 

TheRealCanadian

Volunteer Moderator
#11
I am wondering if any one has a definitive answer on whether it is legal to "flip" real estate on a H1B visa?
If you do it regularly, no.

By "Flip" I mean, putting a house under contract from the seller, then finding another buyer for it and doing a back to back closing. what that means is that the property will only be held by me technically for a few hours or days.
Good luck doing that in this real estate market.
 
#12
I and my spouse are both on H1B visa, working for Fortune100 companies.We came across a HUD property, in a good location in the town, safe neighbourhood, we bid way lower than the asking price and won.You cannot make an argument on how optional practical training in selling real estate or flipping burgers is related to molecular biology, but you can make an argument on how optional practical training in medicine would be related to molecular biology.
 
#13
I've got contacts on H1Bs that flip and they are in the same boat. I'd love to see what info you find out. Doing it legit is best, but how to not waste profits/throw away all the money?
 
#14
guys,
i need desperate help on this. I am on h1b currently and i have i-140 approved (eb3 - cannot file 485 because of retrogression but that is another matter). I own one rental property. Also i have flipped couple of houses and made profit. Do you guys think this is aganist the law ? Is this going to adversely affect my green card application ? My attorney told me that i need to form some kind of corporation . Is he right ? I have heard that when they call for the green card interview, they ask for tax returns. What are the chances that somebody is called for the interview ? I am with the same company from the beginning that filed my green card. I did not have any other jobs.

Any help will be really appreciated. I am ready to stop this if its going to affect my green card in any way. By the way this was just an honest mistake. I thought that real estate investments were just like stocks.

Thanks
why on earth would you try to flip properties in such economy ...its madness ...you will fold ....i have 2 good friends of mine going through bankruptcy because they trough they can flip houses in this kind of economy ....save your money in the mattress for next decade ...trust me its way better then to lose everything ....fast
 

Bobsmyth

Volunteer Moderator
#15
why on earth would you try to flip properties in such economy ...its madness ...you will fold ....i have 2 good friends of mine going through bankruptcy because they trough they can flip houses in this kind of economy ....save your money in the mattress for next decade ...trust me its way better then to lose everything ....fast
The OP never said he flipped houses in the current economy.
 
#16
granted
but flipping property even before was pretty financialy unsound -here in the US most of the flipping was a scam or "sham buying" with buyers and flippers in cohort in order to defraud the banks ..probably as much as 70% of that kind of deals where like that or simple money laundering ...considering that investors look to get return of at least 400% on their money (that's what they teach in business schools here ...wall street deals an such)...so somebody ( some guy with extra cash and no education )walks in and wants to flip house by investing say 200 000 dollars i order to make 20 000 dollars profit ...well its just crazy ..you have to seriously stupid to do that ...one wrong deal and you are going to lose money ...two deals and you are bankrupt ...SEEN THAT HAPPEN TO 2 OF MY FRIENDS

usually all those so called filliping property deals are set up between two people who know each
other ....or even better between some unknown company (yours ) and yourself ..so you buy house from yourself with bank money and then you default on mortgage but have a bundle you took from the bank .. that is the thing they used to do ...on a grand scale ...over and over an over .. and banks with their greed just ignored the signs ...thinking they are making a profit and inflating house price and keeping buyers tied up in some crazy *** deals of 30 YEARS MORTGAGES and such ...
 

peterjames753

Registered Users (C)
#17
Me and my partner are both working on H1B visas for companies.We Fortune100 fell on a HUD property in a prime location in the city, safe neighborhood, we offer well below asking price and not won.You can not make an argument about how Optional practical training in real estate or flipping burgers is related to molecular biology, but you can make an argument about how the practical training in medicine option is related to molecular biology .
 
#18
Me and my partner are both working on H1B visas for companies.We Fortune100 fell on a HUD property in a prime location in the city, safe neighborhood, we offer well below asking price and not won.You can not make an argument about how Optional practical training in real estate or flipping burgers is related to molecular biology, but you can make an argument about how the practical training in medicine option is related to molecular biology .
CHECK THIS LINK BELOW ...ITS ALL WELL EXPLAINED ...IT HAPPENED FOR DECADE OR MORE ..THATS ONE OF THE REASON HOUSING MARKET COLLAPSED ....SO IF YOU WANT TO FLIP PROPERTY....FRAUD IS HE ONLY WAY YOU CAN MAKE SOME MONEY ON IT


http://www.nhi.org/online/issues/113/focer.html
 

PRAHA

Registered Users (C)
#19
Flip goes flip ..trip goes flip ..flip goes trip ..etc ...no flip no trip ..no trip no dow ..no dow no comeda ...but no trip is possible because flip does not work so if you flip you lose ...78789056
 

Huntar

Registered Users (C)
#20
Thanks guys..
The suggestions discussed in this forum are very real in nature and very practical in approach as I am also planning to buy some property and have no knowledge in the field but after reading this forum discussion i am feeling quite confident to make a successful deal.I have very similar situation and there is much discussion on this forum which have really solved my problem.
 
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