@JoeF: On the lines of what you said. If this guy actually has someone managing the LLC (meaning signing all the docs on behalf of LLC). Would that be considered passive investment. Just saying that all things such as sign agreements, accept payments, file taxes etc is done by the manager and the LLC is shown as manager run and not owner run, would that work? If the answer to that is yes, can that manager be outside of US. Imagine things such as e-signing the offer agreement, hiring someone to do property management file taxes is all done by this manager with all the proper audit trail. Would that make the situation better?