By Gary Lanham Group | Collaborating columnist
Those hoping to immigrate to the United States have limited options. Those with means can do so through real estate, business investments, or business investments that include real estate. They invest a fixed sum of money in a business entity that guarantees the creation of a certain number of full-time jobs in exchange for permanent residence visas.
The most popular options for investors are the E2 and EB5 visas.
I recently spoke with Fort Lauderdale immigration attorney Connie Kaplan. An immigrant herself, Kaplan works with investors and families in hopes of making the United States their permanent home through legal immigration. We explored the E2 and EB-5 programs.
The EB-5 Immigrant Investor Program allows foreign nationals to apply for a US Green Card by investing a minimum of $800,000 or $1.05 million in a US business. In 2021 alone, foreign buyers invested some $54.4 billion in more than 107,000 U.S. properties.
Kaplan finds the program lacking for two particular reasons. First, the cost. Along with legal fees that can run into the tens of thousands of dollars, the $800,000 investment would be used to purchase shares in a designated area, such as a mall or development, where their money would be parked during the process.
For the $1.05 million fee, immigrant investors must commit to opening a business and creating 10 full-time jobs.
For example, imagine that a developer wants to build a new shopping center, logistics center or residential complex. Investors in an EB-5 program will receive shares in that program where their money will remain parked throughout the development and their application process.
This is where the trap lies. Once the amount has been fully invested and the business is able to prove that all 10 jobs have been or will be created, the investor can apply for a Form I-526 requesting conditional permanent residence. This filing takes an average of two years – with some taking much longer. Between time, distance, and cost, this may deter some from applying for an EB-5 visa.
Another route in favor is the E2 visa. For an investment, which may vary depending on the type of business, location and other factors, the investor can buy an existing business or open a new business. Kaplan’s clients have purchased primarily retail businesses and the properties where they do business.
Applications based on real estate investments for short-term rental purposes such as VRBO, vacation rentals or AirBnB, are being heavily scrutinized and refused as the government seeks to alleviate the housing shortage. However, motels, hotels and multi-family properties are favored as they lend themselves to job creation.
It is important to note that the E2 program does not lead directly to permanent residency; applicants must reapply every two to five years. Kaplan has customers who have had E2 visas for decades. However, under certain circumstances, an application under the E2 program may later be converted to an EB-5.
Under these programs, the purchase or construction of a luxury home or condominium is not eligible for the application process. Remember that both are linked to the creation of full-time jobs. On-site labor is not eligible.
Of course, there are other ways to apply for a visa or permanent residence, such as marriage, family relations or work. However, for those with financial means, patience, and a penchant for real estate investing, the E2 and EB-5 programs allow them to maximize immigration laws, grow a business, and participate in the American dream. .
As the Gary Lanham Group Team Leader at Coldwell Banker Real Estate Fort Lauderdale Beach Office, Gary is a seasoned listing agent skilled in the most complex transactions, including those involving overseas buyers and investors. He knows how to get sellers the most money in the shortest time, even in this changing market. Contact him at instagram.com/garylanhamgroup or call 954-695-6518. Visit conniekaplanlawyer.com to learn more about the firm of Connie Kaplan.
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