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Foreign investors for S-Corp

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    Foreign investors for S-Corp

    I work with lots of S-Corps, but this is the first time one has asked me about receiving foreign investments. The S-corp is basically a company that flips houses. The business owner of the S-Corp said he has an investor who will invest $10,000 on his company. The "foreign investor" will not be a shareholder of the company. The company remodels homes and resells them. So after the S-corp owners flips the house, he will pay back the investor his full $10k along with a certain cut on the sale of the house. the foreign investor will get his $10k back along with interest and percentage of the house sold. So it's it's like a loan, but with interest and a certain percentage paid to the foreign investor when the U.S. business owner sells the house. Sorry I know its a lot, but any clarification would be appreciated. Thank you.
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