BUYING U.S. REAL ESTATE, A FIRST STEP TO OBTAIN A U.S. VISA

Edward C. Beshara

Attorney at Law/Managing Partner, Beshara Global Migration Law Firm

Up until recently, the vast majority of EB-5 Investors in EB-5 Regional Center Projects have been from China. As a result of Chinese retrogression and the longtime delay for Chinese Investors to obtain Conditional Permanent Residency, a large number of Chinese are now obtaining Residency by Investment in real estate in other countries, besides the U.S.

The U.S. EB-5 industry is aware of the competitive residency programs of other countries, and are competing with the other global migration programs (usually Residency by Investment in Real Estate) for the same investors.

The Chinese investors need to be aware of a new opportunity.

The first step for the EB-5 Investors is to purchase U.S. real estate before the EB-5 investment or obtaining another U.S. Visa.

The EB-5 Regional Center Project can recommend a first step to the investors from China, to buy U.S. real estate for cash. The financial institutions in the U.S. can provide a mortgage or equity line for U.S. dollars and the amount depends on the cash purchase. The mortgage or equity line will be considered the personal funds of the investor to be subsequently invested in the EB-5 project.

The basic structure of the EB-5 Regional Center Program will continue to exist for the EB-5 Investor as the second step.

Under the EB-5 investment Regional Center Program, the personal investment of the investor has to be 100% at risk and no part of the principal investment amount can be exchanged for/or purchase an asset of value such as a condominium or town home.

Foreign national investors investing in real estate by itself does not lead to U.S. permanent residency.

However, foreign national investment by Chinese Investors, in U.S. real estate is substantially increasing. Homes, town homes, condominiums in prime locations are being purchased for cash (or payment in full).

The U.S. today has a solid economy, values of real estate are increasing and stabilizing, financial institutions are providing funding or mortgages for homes, and to foreign buyers.

In the U.S., Prime real estate is being sold and can be purchased by Chinese national investor. For example, prime U.S. homes can be sold at USD $350,000.00 each. Many Chinese investors may decide to buy two homes. In the majority of cases, the foreign national investor will pay cash for the U.S. real estate.

With the assistance of U.S. professionals and financial institutions, a mortgage or equity line on the real estate purchased may be obtained.

For instance, the Chinese investor may have purchased two condos or townhomes at USD $350,000.00 each, for a total of USD $700,00.00. This transaction is independent of the EB-5 investment.

The financial institution may provide a mortgage or equity line of USD $500,000.00 to the Chinese national investor. This mortgage amount is considered the personal funds of the Chinese national investor and supports the proof or authentication of the lawful source of the personal investment funds and the lawful transfer of the funds.

At this point, it is worth noting that the EB-5 Regional Center Project requires personal funds of USD $500,000.00 (the minimum investment amount today) to be invested into the EB-5 Regional Center project.

Then subsequent, to obtaining the mortgage amount of USD $500,000.00, the mortgage amount or equity line of USD $500,000.00 can be personally invested in the separate EB-5 project into order to obtain the U.S. permanent residency.

Chinese investors have an opportunity to make their investments grow through real estate purchases. The value of the real estate may increase, an immediate return may occur through short term rental income of the real estate homes. The short-term rental income may be sued to pay off the mortgage amount.

U.S. Permanent Residency by Chinese Investment in the U.S. Real Estate – Can be a Reality!

The question now is whether there will be new legislation or new USCIS regulations that will be passed and, if so, change the requirements of the EB-5 Regional Center Program.

To date, the proposed legislation will increase the minimum investment amount from USD $500,000 to USD $800,000 or possibly USD $925,000.

The Chinese National investors will have to invest more money in the EB-5 Regional Center Program.

The personal investment has to be 100% at risk and no part of the principal investment amount can be exchanged for/or purchase an asset of value such as a condominium or town home. However, as stated above, there is a benefit for the Chinese investor to FIRST buy U.S. real estate

The above solution developed by our law firm is a clear and predictable process which is rewarding to the Chinese national investor, and beneficial to U.S. Developers and Regional Centers.

Edward C. Beshara, Attorney at Law/Managing Partner, Beshara Global Migration Law Firm and Adjunct Professor of Business Immigration at the University of Florida College of Law. IIUSA and AILA active member, Referral Partner of NES Financial.

Edward C. Beshara, Attorney at Law/Managing Partner, Beshara Global Migration Law Firm and Adjunct Professor of Business Immigration at the University of Florida College of Law. IIUSA and AILA active member, Referral Partner of NES Financial.

If you are interested in learning more about EB-5 immigration, please contact us today and our experienced EB-5 attorneys will guide you through the process.