H1B LLC Passive Investor Scenario


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Hi, I am on H1b and planning to build a vacation home. Once it's ready and operational, Planning to transfer it to a new LLC with Bank Mortage fully obligated to me.  In LLC, I will be a passive investor and my cousin(H4 EAD) as an active partner who will manage all activities which involve signing any contracts, hiring & paying property management companies, any activities involved. 

Questions:

1) In this scenario, do you see any H1b norms violation?

2) Even though the property is on LLC and I am responsible for the mortgage, will that default me from passive investor making me an active one?

3) Can I pay mortgage bills using LLC profit distribution? 

 

Anything that I need to be aware or missing.

 

Edited by Harsh0222
spell correction
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That won't work since you would still be the owner of the property for the bank. The bank won't allow you to transfer ownership to anybody else unless you pay off the mortgage or the LLC takes over the mortgage.

You really need to stop trying these transparent attempts to get around the laws...

Edited by JoeF
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Thanks for the response. Some banks agree to transfer ownership to LLC and still having me liable to pay the mortgage. I am not trying to get around the law(no one can). If the bank agrees, Do you still think it won't work?

Questions:

1) In this scenario, do you see any H1b norms violation?

2) Even though the property is on LLC and I am responsible for the mortgage, will that default me from passive investor making me an active one?

3) Can I pay mortgage bills using LLC profit distribution? 

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Most lenders would have a clause of "due on sale", meaning you'd ha e to pay off the mortgage and the LLC would have to find financing.

Also, how do you tell the LLC to accept ownership of your property? Doing that would be active involvement already, which you can't do on H1.

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