Investment is one of the most prestigious avenues for foreign nationals to achieve both lawful resident status and financial opportunities in the United States, specifically, real estate investment. This is mostly achieved through the EB-5 immigrant investor program, which enables foreign nationals to acquire a U.S. green card by investing a minimum of $800,000 or $1.05 million in a U.S. enterprise. For foreign nationals seeking a U.S. green card through real estate investment, here is a complete guide.
In 2021 alone, foreign investors purchased more than 107,000 U.S. properties totaling over $54.4 billion. It was a slight decline from 2016when foreigners bought more than 214,885 U.S. properties spending a total of $102.6 billion. However, without a doubt, the U.S. attracts many foreign investors that are looking to own a piece of U.S. real estate.
Find out more about Immigration to the U.S.
Table of Contents hide
1.How Does Getting A Green Card Through Real Estate Investment Work?
1.1.1. Invest In a Real Estate-Focused EB-5 Regional Center
1.2.2. Buy A U.S. Property to Start Your EB-5 Enterprise
2.Unique Benefits of Real Estate Investment for Foreign Immigrants
2.1.Green Card for You and Your Family
2.3.Affordable Education for Your Children
3.How Lucrative is Real Estate Investment in the U.S.?
4.How Do I Process My Green Card Through Real Estate Investment?
5.Filing Fees for Green Card Through Real Estate Investment
6.Can Foreigners Buy Property in the U.S.?
7.How VisaNation Immigration Attorneys Can Help
How Does Getting A Green Card Through Real Estate Investment Work?
The foreign investor track has two major programs, namely the Basic Program and the Regional Center Program. The basic program means you will play an active role in the day-to-day operations of your investment. Regional centers are USCIS-approved organizations where you can invest your capital as a partner and a partial owner. To qualify for either of these two types, you will need an EB-5 investment amount of $1.05 million in a U.S. business enterprise or $800,000 if the business is located in a Targeted Designated Area (TEA). Your investment must create at least 10 U.S. jobs.
Getting your green card through real estate investment using the EB-5 program can be done in two ways:
1. 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.
2. 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. However, you should speak with your EB-5 attorney before doing so.
Unique Benefits of Real Estate Investment for Foreign Immigrants
You stand to benefit significantly if you choose this part towards acquiring your permanent resident status in the U.S. The following are some of the advantages you stand to enjoy:
Green Card for You and Your Family
For most foreign nationals, the central attraction of the EB-5 program is the acquisition of the U.S. green card. Once you have directly or indirectly invested $800,000 or $1.05 million in real estate for a business enterprise and you have fulfilled every other EB-5 requirement, you will be able to apply for your green card. Also, your spouse and unmarried children under the age of 21 will also have the opportunity to become lawful U.S. permanent residents.
ROI
Apart from achieving your dream of becoming a permanent resident, another benefit of a green card through real estate investment is the return on investment from your EB-5 enterprise. If your investment is made in real estate regional centers, you stand a good chance of increasing your net worth through the annual payments received as a partial owner.
In the same vein, if you choose a new enterprise approach, the property you buy will likely appreciate in value over time just as the business you operate on it also yields profits.
Affordable Education for Your Children
Being a green card holder in the U.S. will give your children the opportunity to receive a quality education in the country. As lawful permanent residents, your children are considered to be eligible noncitizens with access to the U.S. federal and state government financial aids, loans, and grants. This will afford them the ability to achieve their academic goals in a very supportive environment.
Citizenship
If your goals include acquiring the United States citizenship, getting a green card through real estate investment is a great place to start. Essentially, investing in a business or buying a property in the U.S. could give you permanent residency. Of course, you have to fulfill the EB-5 program requirements first, like investing at least $800,000 or $1,050,000, depending on the location. As well as create at least 10 full-time jobs.
After your investment in real estate, and having proven to be a law-abiding permanent resident for at least five years after the issuance of your green card, you and your family will qualify to become citizens.
All you need to do is file an N400, Application for Naturalization and participate in the interview and civics test. However, if you are not interested in becoming a U.S. citizen, you can continue to maintain your permanent resident status for as long as you want by simply renewing your green card whenever it is about to expire.
How Lucrative is Real Estate Investment in the U.S.?
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.
How Do I Process My 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:
- Consult An Immigration Attorney: Before you begin the process, book a consultation with an experienced immigration lawyer. The lawyer will guide you from the beginning to the end of your application process and help you in choosing the right real estate business that best fits your needs and situation. You will work with your attorney to complete the rest of the application steps, which are:
- Finding an EB-5 approved real estate project to invest in;
- 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; and
- 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.
Filing Fees for Green Card Through Real Estate Investment
The processing fee for a green card through real estate investment varies depending on the type you choose to invest in, and your location.
However, the following are some of the costs you should prepare to cover:
- $800,000 or $1.05 million initial investment amount
- $3,675 for the I-526, Immigrant Petition by Alien Entrepreneur
- $1,140 for the I-485, Application to Register Permanent Residence
- $85 for the USCIS biometric fee
- $3,750 for the I-829, Petition to Remove Condition: This is not part of the initial process, but will be done after the expiration of your conditional green card two years after issuance. It is the process that will lead to the issuance of unconditional permanent resident status, which is renewable after ten years.
- Administrative Fee of $30,000 to $60,000 if you are investing in a regional center.
- Immigration Attorney Fee: You will also need to factor this in when calculating your real estate investment costs. There aren’t any fixed fees for this, as the cost for attorneys varies from firm to firm.
Can Foreigners Buy Property in the U.S.?
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.
Now that you are familiar with what taxes you might be subject to, it is time to explore financing options for foreign investors. There are numerous mortgage options for foreigners available for applicants without credit history in the U.S. Essentially, you are not required to build new credit, and the lender will assess you solely on your current revenue streams, including your foreign businesses.
How VisaNation Immigration Attorneys Can Help
At VisaNation we will help you acquire your green card through real estate investment, and also ensure your capital is rightly invested for high profitability. VisaNation Law Group immigration attorneys have helped many foreign investors acquire their green cards. You can schedule an appointment with us by simply filling out this consultation form.
FAQs
Once you have directly or indirectly invested $800,000 or $1.05 million in real estate for a business enterprise and you have fulfilled every other EB-5 requirement, you will be able to apply for your green card.
Is 2023 a good time to invest in real estate? ›
Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.
How much investment is needed for EB-5 2023? ›
EB-5 Visa Investment Amount in 2023
According to the USCIS (U.S. Citizenship and Immigration Services), the minimum invested amount a solicitant must fund depends on the petition filing date and the investment location. If the EB-5 Visa petition date is before 3/15/2022, the minimum investment amount is $1 million.
Can I get a green card through real estate? ›
Yes, you can obtain a green card through real estate investment in the United States. Although buying a real estate property will not directly help get a green card in the U.S., there are some ways to get a green card by investing in real estate. One of the preferable ways is through the EB-5 Investor Program.
What is the processing time for EB-5 2023? ›
EB-5 visa processing time for I-526 Immigrant petition ranges between 29.5 and 61 months, as of May 2023, USCIS processing estimates. For investors present in the USA, I-485 Processing time of USA investment Green card application to Adjust Status is 7 to 29 months depending on the service center.
Why buying real estate in 2023 is smart? ›
2023 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.
Is the end of 2023 a good time to buy a house? ›
The combination of persistent buyer demand and low inventory has driven property prices up. There are fewer sellers, so prospective buyers need to contend with higher housing prices. As such, if you buy a home in 2023, you're likely to pay a premium.
What happens if an EB 5 investment fails? ›
USCIS expressly provides that EB-5 investments must boost job creation in the United States. If an EB-5 project fails to meet the job creation requirements, it will likely result in exponential losses in capital and a green card denial. The next question is whether investors can have the invested amount reimbursed.
Does EB-5 guarantee a green card? ›
USCIS administers the EB-5 Program. Under this program, investors (and their spouses and unmarried children under 21) are eligible to apply for lawful permanent residence (become a Green Card holder) if they: Make the necessary investment in a commercial enterprise in the United States; and.
Do EB-5 investors get their money back? ›
Do EB-5 investors get their money back? EB-5 investors may get the full or part of their invested money back when their immigration and investment cycles are completed. Many regional centers would include the terms and conditions of this exit procedures in the investment agreement or other documents.
Requirements for an investor Green Card
- Invest $1.8 million (respectively $900,000 in targeted employment areas)
- Present a business plan that explains how the US economy will benefit from your investment.
- Create or preserve at least ten full-time jobs for American workers.
- Green Card for Employment-Based Immigrants.
- Green Card for Family Preference Immigrants.
- Green Card for an Immediate Relative of a U.S. Citizen.
Green Card through the Green Card Lottery
Due to the high requirements in other Green Card categories such as employment-based, family, marriage, and investment Green Cards, the path through the Green Card Lottery is, for most people, not only the easiest but often the only way to a life in the USA.
How many EB visas for 2023? ›
A. DOS currently estimates that the FY 2023 employment-based annual limit will be approximately 197,000, due to approximately 57,000 unused family-sponsored visa numbers from FY 2022 being added to the employment-based limit for FY 2023.
Will USCIS speed up in 2023? ›
The USCIS has also improved its processing time for work permits in 2023 to 3.6 months, up from 4.1 months in 2022. Green card petitions under the Cuban Adjustment Act of 1966 are being processed much faster in 2023 (3.4 months compared to the 5.4 months processing time for 2022).
What is the success rate of EB-5 Green Card? ›
Immigrant investors file either Form I-526 or Form I-526E to demonstrate to USCIS their compliance with all tenets and laws of the EB 5 visa program. The approval rate for I-526 petitions generally ranges from about 75% to above 80%.
Will house prices go down in 2023 usa? ›
Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.
Will 2024 be a good time to buy a house? ›
With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.
Will mortgage interest rates go down in 2023? ›
“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).
Will 2023 be a better year to buy a car? ›
According to industry analysts from Cox Automotive and J.D. Power, some automotive market conditions are likely to improve in 2023, but perhaps not enough to trigger radical change. "We certainly do expect the market to get better than it's been," says Tyson Jominy, vice president of data and analytics at J.D. Power.
Since the start of 2022, the Fed has hiked rates 10 times to combat rising inflation. As of May 2023, the federal funds rate ranges from 5.00% to 5.25%. If this prediction is correct, it won't be surprising to see some of the best high-yield savings accounts offering rates exceeding 4%.
What month are houses most expensive? ›
Specifically, the end of May and June typically see the most home sales. However, summer is often cited as the most expensive time to buy a house — with prices potentially as much as 10% higher. This is partly because many families want to purchase a house before their children start a new school year.
How risky is EB-5? ›
EB-5 visa regulations dictate that the investor's capital needs to be "at risk" and no guarantees are allowed to be offered to the investor on any return on, or of capital. In layman terms, this means that in the process of getting a green card, if not careful, you could potentially lose the entire amount invested.
How much should I invest for EB-5 visa? ›
EB5 Investment Amount
An investment of at least $800,000 in a Targeted Employment Area (a rural area or high-unemployment area where the unemployment rate is at least 150% of the national average) A direct investment of $1,05 million in a US commercial enterprise.
What is the best investment for EB-5 visa? ›
The best EB5 Projects are in the hotel construction and real estate industries. Hotel construction and real estate EB5 Investment Projects have a consistent demand and ensure more than enough jobs to satisfy the requirements of the EB5 Visa.
Can I get a US visa if I buy a property? ›
Essentially, investing in a business or buying a property in the U.S. could give you permanent residency. Of course, you have to fulfill the EB-5 program requirements first, like investing at least $800,000 or $1,050,000, depending on the location. As well as create at least 10 full-time jobs.
Can you take a loan for EB-5? ›
Yes, you may use loans to finance your EB-5 investment.
The loan may be secured or unsecured. Loans are traditionally secured by the EB-5 investor's personal assets, such a real estate, for a home mortgage loan or a home equity line of credit (HELOC).
What is the age limit for EB-5? ›
What age is eligible to apply for EB5 Visa? There is no age limit to applying for the EB-5 Visa Program. Age is only relevant when it comes to signing contracts; An applicant under 18 years old cannot sign a legally binding contract. A legal guardian co-signs the documents on his or her behalf.
What is the rate of return on EB-5? ›
The rate of return will depend entirely on the specific details of the investment. While ROI cannot be guaranteed, investors in EB-5 projects that employ a loan-based model might earn 1–2%, while equity investors' earnings will vary based upon the profitability of the enterprise.
What is the interest rate for EB-5? ›
INTEREST RATE:
For senior debt, EB-5 rates are typically 3%-5%. For subordinate debt the rates are 5%-9%. Typically the loans carry monthly payments of interest only.
The EB-5 program, also known as the Million Dollar Green Card, allows investors to obtain a green card if they invest either $500,000 or $1,000,000 in business or projects that will create 10 full time jobs. To learn more about the EB-5 program, please click here.
How do I qualify for EB-5 2023? ›
To get an EB5 visa, you must invest at least $800,000 in a Targeted Employment Area to finance a business that employs at least 10 American workers. Besides, you have the freedom to choose whether you want to invest individually or want to work through a wider investor pool via regional centers (RC).
How long does it take to get a green card through investment? ›
This application proves that the investor has met all requirements of the EB-5 visa program. The government usually issues a permanent green card around 6 months after the I-829 has been submitted.
What is the easiest and fastest way to get a green card? ›
If you want to become a permanent resident of the United States, here are a few of the quickest routes.
- The Green Card Lottery (Diversity Lottery) ...
- Family-Based Green Cards. ...
- Employment-Based Green Cards. ...
- Corporate-Based Green Cards.
Marriage to U.S. Citizen
This is the fastest way to immigrate. Typically, the process lasts from six to nine months, after which a temporary Green Card is received. Within the next two years, you must contact the USCIS again with proof of the validity of the marriage.
What is the shortest way to get green card? ›
Category 1: Green Card Through Family. If you're a close relative to a U.S. citizen or a green card holder, they can petition for you to obtain legal permanent residency. This option is the fastest and most popular path to getting a green card.
What is the fastest way to get U.S. citizenship? ›
Military and marriage-related naturalization are usually the fastest, but even a typical green card route may take as little as five years.
When to apply for green card 2023? ›
DV-2023 Entrants have until September 30, 2023 to check the status of their entry through this website. The DV-2023 registration period was from October 6, 2021, until November 9, 2021. Click the link below to check DV-2024 and DV-2023 Entrant Status.
How long do you need to stay in US to get a green card? ›
Show you have been physically present in the United States for at least 30 months out of the five years immediately before the date you file Form N-400; Show you have lived for at least three months in a state or USCIS district having jurisdiction over your place of residence.
How to make money in real estate in 2023? ›
- House Flipping. Fix and flips are one of the most popular methods of making money in the real estate market. ...
- Rental Properties. Another way to invest in real estate is to buy property directly. ...
- House Hacking. ...
- Real Estate Investment Trusts (REITs) ...
- Online Real Estate Crowdfunding Platforms.
Top 10 Issues Affecting Real Estate 2022-2023
- Inflation and Interest Rates.
- Geopolitical Risk.
- Hybrid Work.
- Supply Chain Disruption.
- Energy.
- Labor Shortage Strain.
- The Great Housing Imbalance.
- Regulatory Uncertainty.
Land investment may not be as common as residential real estate, rental properties, or REITs, but it's looking like a solid choice in 2023, and beyond. Investments in land have steadily increased over the last decade. Investors may purchase land for agricultural purposes or residential and commercial real estate.
What is the cap rate for real estate in 2023? ›
In Q1 2023, the average going-in cap rate, which is based on the first year of net operating income at the property purchase price, increased 23 basis points to 4.72%, “marking the first significant quarterly deceleration in cap rate expansion since the Fed began its latest round of rate hikes,” according to CBRE.
How to make $1000000 a year in real estate? ›
How To Make A Million Dollars In Real Estate
- Learn About Real Estate Investing.
- Establish Your Goals.
- Start Now, But Start Small.
- Write Offers For Affordable Deals.
- Generate Cash Flow.
- Start Growing Your Portfolio.
- Invest In Larger Properties.
- Continue Growing To 1 Million Dollars.
- Earn more. I think one of the first steps for building wealth is to earn as much as possible for a while. ...
- Watch your student debt. There are different approaches to debt, but I tend to agree that there's good debt and bad debt. ...
- Separate time from money. ...
- Buy assets. ...
- Build assets. ...
- Start saving for retirement. ...
- Educate yourself.
Where To Invest $150k In Today's Real Estate Market
- Wholesaling properties.
- Fixing and flipping homes.
- Buying and holding rental properties.
- Investing in mortgage debt.
- Private money lending to other investors.
- Stocks, REITs and partnerships.
In 2023, the national annual median price for homes for sale is projected to rise by another 5.4%, which is less than half the pace seen in 2022. Even if a homeowner decides to sell their home, they will likely have a lot of equity in it.
What is the biggest challenge in real estate? ›
Dealing with unrealistic sellers
Many sellers compare their houses to those in the neighborhood and want to sell them as quickly as others. It's your responsibility to make them understand the real scenario. This is one of the most common problems that real estate markets face.
Will house prices go down in 2023 in India? ›
In 2023, 43% of developers anticipate residential demand to remain stable, while 31% believe it will rise by up to 25%, according to the “Real Estate Developers Sentiment Survey” conducted by the Realtors' apex body CREDAI, real estate consultant Colliers India, and property research firm Liases Foras.
Is it cheaper to build or buy a house? ›
Overall, it's cheaper to build a home than to buy one in California, with 13 out of the 20 counties saving you money if you decide to build your house from scratch. Budget-wise, building is more favorable in Southern California whereas Central California caters best to those interested in buying.
Perhaps there's a perfect property that comes up for sale and you don't want to lose it, so buying the land now and building later makes sense. From a financial perspective, it may be much more feasible to split up the investments and have time to rebuild your savings before being ready to build.
Is it smart to invest in gold? ›
Gold is considered a hedge against inflation
Gold and other precious metals have long been considered a smart way to fight inflation. That's because it tends to hold its value and preserve your purchasing power over the long haul, despite fluctuations in the dollar.
What is a good cap rate on rental property 2023? ›
Market analysts say an ideal cap rate is between five and 10 percent; the exact number will depend on the property type and location. In comparison, a cap rate lower than five percent denotes lesser risk but a more extended period to recover an investment.
What is the exit cap rate in real estate? ›
The terminal capitalization rate, also known as the exit rate, is the rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value.
What is going in cap rate in real estate? ›
Going-in-cap rate is the cap rate based on the ratio of the first year of net operating income to the property purchase price. For example, if a property is expected to generate a first year net operating income (NOI) of $100,000 and is valued at $1,250,000, it would have a cap rate of 8.0% ($100,000 / $1,250,000).
