US EB-5 Real Estate, Benefits to foreign investors for a permanent residence in America

US EB-5 Real Estate, Benefits to foreign investors for a permanent residence in America

2024/03/25 11:49am

The EB-5 program has gained popularity among foreign investors seeking to invest in the United States. A lucrative substitute to the H-1B visa, the EB-5 program has quickly found suitors among foreign nationals looking to invest in the United States. In the program, the US real estate sector has emerged as one of the most preferred modes of investment by foreign individuals who are looking to become eligible for the EB-5 Immigrant Investor Visa Program. It offers permanent residence to EB-5 investors, who invest a specific amount of capital to create at least 10 jobs for a minimum period of two years in the USA.

Similar to the investors, real estate developers also benefit from the EB-5 program. The program enables them to accumulate the necessary capital for a large-scale project that generates and sustains several jobs for Americans. It is also a safe avenue for investing for foreign nationals that offers lucrative returns, with added benefits.

EB-5 Program in Real Estate

EB-5 real estate investments are comparable to other investment opportunities since they allow foreign nationals to invest in varied real estate projects in the USA. These projects can be residential, commercial as well as industrial land development proposals and offer lucrative returns to the investors. This model of investment opportunity received a boost following the 2008 financial setbacks when many real estate projects failed to acquire the necessary capital from conventional modes.

Next year, US Citizenship and Immigration Services (USCIS) announced that construction jobs from real estate development projects would be counted within the parameters of job creation requirements of the EB-5 program – resulting in a sharp increase in real estate investment by foreign nationals in premier locations in Texas, Los Angeles, New York, Washington DC, and other cities.

An EB-5 real estate investment can be made in two avenues – direct investment and a regional center project. Investors can look up the requirements as per their desire for investment and become party to the benefits of these programs.

Benefits of EB-5 Real Estate Investments

EB-5 real estate investments come with added advantages for the investors. In direct investment, the investors are allowed to set up a business or acquire one, directly. In this avenue, they are also allowed to manage the operations of the business themselves without the need for third-party interference. Statistically, 2%-5% of the total EB-5 appeals are produced through this option. In 2018, almost 250 applicants selected the direct investment program for their application. Investors with access to large amounts of capital often choose this avenue.

On the other hand, investors who do not have access to significant funds stack their capital in funds of a particular regional center that focuses on economic development. Almost 95% of total applicants choose this module of investment to receive permanent residency and added benefits.

The real estate sector offers EB-5 investors with palpable investment opportunities that can be objectively reviewed. The demand for these projects is growing across the USA, offering the potential of a profitable return on investment (ROI). Real estate also offers the creation of a large number of jobs that not only meet but often exceed the criteria of the EB-5 program.