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Greetings!
Two weeks ago I was fortunate to be in beautiful Bogota, Colombia for the Gran Salon Inmobiliario, the country's biggest annual real estate fair. When I wasn't sipping aguardiente or eating chicharron at the pleasantly zany and immensely popular Restaurante Andres Carne de Res, I was answering questions about U.S. immigration laws.
The question of the day was: "Can I get a green card or other type of visa by investing in real estate?"
The simple and short answer is that a passive investment in real estate, such as an investment in a $1 million apartment on Miami Beach for personal use, does NOT qualify for a green card or E-2 investor visa.
However, for the foreign national who has invested, or wishes to invest, in U.S. real estate, it would be premature to stop there.
Premature because...it all depends on the type of investment.
In the EB-5 green card context, the investment must be in a "new commercial enterprise," which is generally one that was started after November 29, 1990. This includes "holding companies" as long it consists of wholly owned subsidiaries engaged in for-profit activity formed for the ongoing conduct of a lawful business.
The Department of State Foreign Affairs Manual, which guides consular officers in performing consular functions, including adjudicating E-2 investor visas, states as follows:
An E-2 investment must be in a real and active commercial or entrepreneurial undertaking, producing some service or commodity. It cannot be a paper organization or an idle speculative investment held for potential appreciation in value, such as undeveloped land or stocks held by an investor without the intent to direct the enterprise. The investment must be a commercial enterprise, thus it must be for profit...
9 FAM 41.51 N9 (emphasis added).
All of the above leaves open the possibility of creating a real estate property management company that owns, manages and maintains several real estate properties. If the investor demonstrates he or she will rent out multiple properties to tenants and arrange for services such as security, electrical, plumbing, painting, cleaning, and maintenance, then the investor could legitimately prove it is in business for profit. The investor may also be able to show he or she is marketing properties to prospective tenants, and compliance with state regulations relating to property management companies.
Of course, there are additional requirements to prove eligibility for a green card (EB-5) or temporary visa (E-2) based on investment. However, as a starting point, real estate investors may find it interesting to know how a "for profit" real estate business can provide the vehicle for obtaining immigration status.
Contact Jacob L. Ratzan, P.A. with questions regarding immigration status based on real estate investments, and for any other immigration matters.
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