Invest In a Real Estate-Focused EB-5 Regional Center
Many approved EB-5 Regional Centers deal with real estate and are always keen to have foreign investors on board. The handlers of the programs will do all the groundwork such as reviewing proposed land for construction, land entitlement, development documentation and overseeing the building process.
Some of the lucrative properties these centers invest in include resort hotel developments, student housing, restaurants, office components, senior living home facilities, and shopping centers.
As a foreign investor, if you choose this EB-5 route, you would be granted partial ownership of the project having the opportunity to participate in the cash flow and profit sharing of the business.
Buy A U.S. Property to Start Your EB-5 Enterprise
If you would like to play an active role in running your EB-5 investment, another way you can get a green card through real estate investment is to own the real estate on which your business operates. Since the requirement of the creation of 10 full-time employment for U.S. workers must be met, your best bet will be to buy a building to start a new enterprise or invest in an existing business.
This can help you fulfill two requirements at once as you can use the bulk of the investment amount for the purchase of the building and use the remaining part of the money to meet all other new commercial enterprise requirements of EB-5 program including employing the specified number of employees.
To save a substantial amount on their EB-5 investment, foreign investors sometimes buy distressed properties, which can be purchased at a low acquisition cost to start their new commercial enterprise. So long you invest the minimum amount and adhere to the USCIS requirements of the program in the usage of the property, this may be a viable option.
Benefits getting an EB-5 visa for the US
- Easiest option to get US Green Cards for your family.
- No age limit.
- No educational requirements.
- No language requirements.
- Gain access to the US job market.
Requirement for getting an EB-5 visa for the US
Under this program, investors (and their spouses and unmarried children under 21) are eligible to apply for a Green Card (permanent residence) if they
- Make the necessary investment in a commercial enterprise in the United States.
- Plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.
This program is known as EB-5 for the name of the employment-based fifth preference visa that participants receive.
Processing your green card through real estate investment
The EB-5 investor green card process involves many stages which must be duly followed before you can become a green card holder, and the success of one step will lead to another. Prospective investors are usually advised to follow these guidelines.
- Finding an EB-5 approved real estate project to invest.
- Formulating your business plan, which must comprehensively reflect EB-5 investor program requirements.
- Preparing supporting documents.
- Investing capital of $800,000 or $1.05 million in the project.
- Filing the I-526, Immigrant Petition by Alien Entrepreneur.
If your I-526 petition is approved, you will be issued a conditional permanent card which will be valid for two years. You are expected to have invested the capital and generate 10 new U.S. jobs within the two years. After that period, you will be eligible to file an I-829 to remove conditions on your status and receive an unconditional green card which is valid for ten years at a time.
Applying for US citizenship with a US Green Card
If your EB-5 visa application is approved, you and your dependents will be issued US Green Cards. Do keep in mind that EB-5 Green Cards are only conditional and expire within two years from the date of issue. To be granted an EB-5 visa, you will have to show that the US business you will be investing in will be able to hire the required number of workers. Your business must do that within the allotted two years to maintain EB-5 eligibility.
Your unconditional permanent residence US Green Card will be issued after two years, provided you are able to maintain your eligibility. After living in the US continuously for five years, you can apply for US citizenship with your family.
Real Estate in the United States
Real estate in the U.S. is one of the most consistent ways of building wealth as there are various ways through which you can generate income from it. Whether you choose direct or indirect investment in real estate, the U.S. market can snowball the value of a single property into the purchase of more buildings that could lead to a reliable business unit, financial freedom, and a fulfilled retirement.
For example, if the property is used as a commercial rental property, you will be generating regular cash flow as leftover after you have made your investment amount from the rent collected. Also, a U.S. property has the potential of appreciating for as high as 20%, especially when there is a boom in the market.
Are there any restrictions on the acquisition of real estate in the US by foreign buyers.
In terms of foreigners buying property in the U.S. for immigration purposes – citizens of practically any country are able to buy property in the U.S. In recent years, many EB-5 visa applicants have chosen to invest in commercial property. Although it is a viable investment immigration option, foreign entrepreneurs should be wary of tax implications when owning a property in the U.S.
Foreigners are subject to a 30% tax on the gross income of their U.S. property. However, you could benefit from a 30% tax on your net income instead. You can do so by Section 871(d) deduction, which allows you to deduct eligible expenses for a real estate business that is used to generate income in the U.S.
You can make this election by attaching a statement that you are making this election to your annual tax return. You should also include all of the relevant information about your properties in the country when you purchased them and any income associated with those properties. Some foreign nationals may benefit from tax treaties that the U.S. has with their home countries, which help to decrease the taxable amounts in the U.S. and in their home countries.
