Booming $1,000,000 Investments. EB-5 Visa Program
The EB-5, program, also known as the Immigrant Investor Program, is a visa program that benefits entrepreneurs, business owners and other successful people who want to immigrate into the United States. The vast majority of those applying for this program are from China which has a booming economy. These Chinese investors seem eager for greater freedom or just might want to send their children to the great schools located in the United States. Warren Buffett, Bill Gates, and Sheldon Adelson recently endorsed the EB-5 program in an op-ed column in the New York Times. Since there is no waiting list for the EB-5 program it enables those seeking to become residents of the United States a faster and easier way to reach their goal. A recent study suggested EB-5 investors contributed $3.4 billion to the U.S. economy and supported 42,000 jobs. The EB-5 program brings about $1.8 billion into the U.S. annually.
In order to qualify for the EB-5 visa program, the person seeking to enter the United States must make an investment of $1,000,000.00 million in a business that will employ ten U.S. individuals. (In some cases less than one million can be invested to qualify for the EB-5 program, but a million dollars investment exempts the investor from having to invest in a struggling area.) There is legislation pending that could raise the required investment. Considering that many U.S. residential single family homes are now in the million dollar range, this visa option is becoming more and more popular, and economical.
Although not always obvious, an investor can invest in partnerships, limited liability companies, and corporations that invest in apartment buildings. These partnerships, limited liability companies, and corporations can be comprised of only a couple of people. This option makes it easy to set up an organization for investors to invest in. A $1,000,000,000.00 investment, used properly, can buy a $5,000,000.00 dollar apartment complex. This apartment complex will employ at least ten people to make it run properly. Investing in good quality real estate gives an investor safety that another type of business might not provide. The $1,000,000.00 investment, plus interest, can be repaid to the investor upon a refinance. This allows the investor the opportunity to get a visa for himself, his spouse and children under twenty-one, it allows the investor to have all his principal to be returned, it allows the investor to learn about U.S. real estate so he can invest in real estate and make money in the future, and it allows the investor to help create at least ten U.S. jobs.
Even though the investor cannot be completely passive in the business he invests in, he or she does not have to be engaged in the day-to-day management of the real estate. It is important that the investor be able to document the origin of the funds he is investing. The visa obtained by the investor by investing in a United States real estate venture is conditional for two years and can be made permanent at the end of the two years with proof that the investment proceeds were used as stated and the required number of jobs has been created.