EB5 Real Estate Investment Program

Tips on Incorporating EB5 Real Estate Investment into Your Current Plan

If you’re on the lookout for some fresh capital to infuse into your Texas commercial real estate investment, you may feel like you’re out of luck in this market. After all, we’re not out of the recession yet, meaning most people don’t have disposable income to volunteer and those individuals or companies who do are more cautious than ever. This is where the EB5 real estate investment program may come in handy.

What Is the EB5 Real Estate Investment Program?
Back in 1990, Congress was looking for a way to help the American economy out of a recession. What they eventually decided on was a program that involved the U.S. Citizenship and Immigration Service, as well. Called the EB5 Program, it allowed wealthy immigrants a fast track to gaining a green card if they invested at least $500,000 into a qualified U.S. business. One of the main qualifications was that this business had to create or sustain 10 fulltime positions for two years.
In 2013, it was estimated that the EB5 real estate investment program would provide the U.S. economy with an extra $2.1 billion and 42,000 jobs, all at no extra cost to the country’s taxpayers.
So if your current Texas commercial real estate investment is suffering from a lack of capital, the EB5 program may be the answer to your problems. Just make sure you understand the following tips.

Make Sure Your Investment Qualifies
So long as you haven’t broken ground yet, it’s not too late to make sure you find a regional center in Texas that will qualify under the EB5 real estate investment program. These areas are designated by U.S. Citizenship and Immigration Services. Generally, they are parts of Texas facing especially overwhelming economic challenges and high unemployment.
Another option is to simply take on direct investment from immigrants. However, this tends to have a lot more restrictions on it and, thus, only accounts for about 5% of EB5 investments.

Get the Help You Need
While you or your team may have plenty of experience when it comes to commercial real estate investment in Texas, that doesn’t mean you’re prepared for the challenges that come with the EB5 program. At its heart, it’s still a manifestation of the United States’ immigration process. So if you and your team lack experience in this area, you’ll be in for a long and laborious process.
At the very least, you’ll need the help of immigration attorneys. Chances are you’ll also need labor attorneys, too. Your best bet will most likely be to find a firm that can provide you with all these resources and have a successful track record of helping other groups navigate this process in Texas.

Be Careful About “Finders”.
The kind of help you want to avoid, however, is from those people called “finders”. These are people who find projects involving the regional centers in Texas and then expect a finder’s fee for essentially selling them like securities. The SEC forbids this type of transaction.

While the economy still has a ways to go, that doesn’t mean your real estate investment in Texas doesn’t have any hope. Thanks to the EB5 real estate investment program, your project can get the cash injection it needs.