Are EB5 Investor Visas A Good Deal for Immigrants?

In 2015 NPR published an article stating they weren’t a good deal for investors but the fact remains, with the right deal in place, there is no better option for foreigners.

Here are the reasons they state it’s a bad deal in summary:

1.Job creation without public sector funding–this is a big one which was littered with fraud but the vast majority of overseas investors are good willing and able to create value to the US Economy.

2.  The program is “selling” democracy to the highest bidder. While there is some truth to this as well, the high cost of the financial commitment is not without a filtering process. Nobody from ISIS is getting an investor Visa even though they have, theoretically, impressive amounts of capital to play with.

Let’s remind ourselves of the benefits of the EB-5 investor visa and why all agents of luxury properties should be going out of their way to court investors to buy properties in the US now and into the foreseeable future:

1. They pay market rates for properties. Real estate is still an excellent value in the US, especially in my backyard, Miami Real Estate  is pricey but it is still seen as a buyers market.
2. They often pay cash outright in property deals. Financing takes time and creates the risk to return equation to favor more towards higher volume of leads needed to generate agency revenue. EB 5 investors are principally ready to pay up front and are cash rich.
3. Self-made investors or at least very comfortable with the risk associated of moving their life to another country. They should be encouraged to come because they are welcome. After a reasonable vetting process, of course.
4.  EB-5 Investors understand the value of a good deal, and, at the moment at least, Miami real estate, such as the pre-construction Miami Paramount World Trade Center is a natural business and residency option for Chinese and South American buyers whose fortunes are deeply tied into the family. Read further below some of the impressive stats that projects like this are generating in cities like Miami.

Agency Partnership Opportunities with the EB-5 Investor Visa

Don’t overlook this chance to increase your lead generation with the EB-5 investor program by partnering with a local lawyer in your area to bring in new leads at rates larger than you could dream of on your own. If you are not comfortable working directly with a lawyer, consider some of the not for profit centers established to promote FDI in the US. Yes, this is an often overlooked aspect of real estate development but more and more projects are seeking to bypass the banks and lenders all together and seeking early round funding directly from immigrant investors like those who qualify for the EB-5 investor visa program.

Significant stats about the EB-5 investor program in the past few years:

1. In 2013, Florida saw EB-5 capital investment jump to $150.5 million up from $10.5 million in fiscal year 2010-’11.
2. Currently, Florida is ranked No. 3 in terms of EB-5 capital investment, up from being No. 11 less than five years ago. This puts Florida ahead of both California and New York.
3. At a national level, more than $13 billion of foreign direct investment has been injected into the U.S. economy since 2008 as a result of the EB-5 program.
4. A politically sensitive topic but an undeniable fact: more than $9 billion has been created in the U.S. GDP from FY2010-FY2013. More than 29,000 jobs maintained annually as a direct result of EB-5 investor visas over the past decade.

5.Brazil, or Latin America, only represents 10% of the total amount of issued EB-5 investor visas since 2014. While the number is growing, the main driver of growth is marketing. There remains a massive gap of information versus myth in the market surrounding this topic.

6.The well-received marketing drive of the Paramount Miami World Center has seen a record investment directly from Brazil of more than 1 Billion in FDI. This has upped the bar for the Miami market to deliver on their promise to welcome more Brazilian businesses to the market.

Info provided from Miami Real Estate Trends. If you are looking for property investment data on luxury condos and estates in Miami, this is your go to source.