Can Foreigners Invest in U.S. Real Estate?

### 1. U.S. Travel Restrictions Are Not Investment Restrictions

The United States has imposed visa and travel restrictions affecting certain countries, including the Republic of the Congo (Congo-Brazzaville).

However, a restriction on entering the United States does not automatically prohibit someone from conducting lawful financial transactions with a U.S. business.

The Democratic Republic of the Congo (Congo-Kinshasa) is subject to certain targeted U.S. financial sanctions. These restrictions do not constitute a blanket prohibition against ordinary Congolese citizens lending money to U.S. businesses.

### 2. How the $30,000 SlowFlip Loan Works

The proposed arrangement involves a private lender providing $30,000 to a U.S. real estate company for the acquisition or financing of residential property.

The lender would receive:

- A promissory note establishing the amount borrowed, agreed interest rate, repayment schedule, and obligations of the borrowing company.

- A mortgage or deed of trust securing repayment against the U.S. property, properly recorded according to state law.

- Agreed repayment terms establishing how and when the lender receives principal and interest.

The lender does not need to live in the United States or personally visit the property to enter into this type of arrangement.

This is a direct private lending transaction, rather than a purchase of an ownership interest in the property.

### 3. Requirements for the International Transaction

Before funds are transferred, the parties should establish the following:

1. Identity verification: Confirm the lender's identity and screen the lender and relevant financial institutions against applicable U.S. sanctions lists.

2. Banking: Confirm that the lender can legally transfer the money through their financial institution and that the receiving U.S. bank can accept it.

3. Loan documentation: Execute the promissory note and applicable real estate security documents, including proper recording of the lien.

4. Tax compliance: Determine the applicable U.S. withholding and reporting requirements for interest paid to a foreign lender. Certain exemptions may be available, depending on the loan structure.

5. Local compliance: Confirm any applicable Congolese banking, currency-transfer, and foreign-investment requirements.

### 4. Is the Transaction Illegal? Could Either Party Face Criminal Charges?

There is no general U.S. federal prohibition against an eligible person residing in the Congo making a properly documented $30,000 private loan to a U.S. real estate company.

The transaction is not inherently illegal because the lender is Congolese or because the money originates from the Congo.

Criminal concerns would arise from prohibited conduct, such as knowingly dealing with sanctioned parties, money laundering, or fraudulent financial activities—not simply from participating in a legitimate international private loan.

### Conclusion

A Congolese resident may generally participate as a private lender in a U.S. real estate transaction, subject to applicable sanctions, banking, tax, and lending requirements.

U.S. immigration restrictions should not be confused with a general prohibition on lawful international lending.

Before transferring funds, the parties should have the specific loan and cross-border arrangements reviewed by qualified legal and tax professionals. This is particularly important to ensure the lender's funds are properly secured and that international payments can be completed lawfully.

This explanation provides general U.S. regulatory information and is not a transaction-specific legal opinion.