Monday, 20 October 2014

Real Estate Financing Through the EB-5 Investor Immigration Program | Real Estate Investing

<b>Real Estate</b> Financing Through the EB-5 <b>Investor</b> Immigration Program | Real Estate Investing

<b>Real Estate</b> Financing Through the EB-5 <b>Investor</b> Immigration Program

Posted: 16 Oct 2014 08:59 AM PDT

One of the largest challenges for most new real estate developers (especially, when it comes to commercial properties) is funding. Sometimes traditional places investors go to for financing real estate projects can be difficult to find. In 2008 as the usual sources for money started to dry up, many business owners and real estate develops starting turning to a different source of funding for their projects. The Immigrant Investor Program, EB5 as it is also known, was signed into law in 1992, but only relatively recently has it become a tool for real estate financing.

The program which was formulated by Congress to drive the American economy out of recession is administered by the U.S. Citizenship and Immigration Services (USCIS). The program allows for foreigners with deep pockets to get a green card and become a conditional, permanent resident of America. With an investment of at least $500,000 in a qualified, for-profit business, the EB5 program can be a win-win.

There are two basic options available to "investment immigrants." A person can invest on his own as an "individual investor" or they can pool their money and invest through an "EB5 Regional Center."

If an investor chooses to invest on their own, they must find the property or business on their own and it should be one they can directly manage. This makes it an attractive option for people who prefer to have a hands-on style of management.

Investing through a Regional Center, the investor isn't alone. Regional Centers help sustain economic grown and job creation in specific areas and act like brokers who match investors and developers. As reported by Investorvisa.ae, Roughly 95 percent of all visa investments are channeled through Regional Centers and the centers frequently coordinate multiple development projects at any given time.

The EB-5 program has expanded as more real estate developers learn of the program and see the benefit. In 2007 there were 11 Regional Centers nationally and today there are over 200. The number of investors has grown as well. In 2007 there were just 775 EB5 Investor applications. Today that number has grown into the thousands.

One downside of the EB5 is the amount of time required before the money can be seen. The interval between initial application and funding can be up to 12 months in some cases, and many cases take up to a year and a half. The waiting period can be reduced if a real estate developer wants to use the capital before the visa is issued. If the visa is later denied though, the funds must be returned to the investor. Because of this, some developers ask for more capital than is actually needed for their projects.

President Obama signed into law a three year reauthorization of the EB5 program in 2012. With the increase in interest in the program and the past success, Congress is starting to review the idea of making the EB5 Visa program permanent. Another option being considered is lowering the minimum threshold for investment to allow more foreign investors which would help fuel an American real estate recovery.

Arkady Bukh, Esq is a veteran New York criminal attorney who focuses on high profile white collar crime and Federal cases. Arkady is also an author published in Law360, NJ Law Journal, Daily Journal, Enrepreneur, Nolo, and many other legal media. Arkady can be reach at Bukh Law Firm, 14 Wall St, New York NY 10005, (212) 729-1632, NYCCriminalLawyer.com

5 Smart Strategies for <b>Real Estate Investing</b> | RentFax-RISC Index <b>...</b>

Posted: 28 Aug 2014 06:30 AM PDT

Jeff Adams, the real estate investing expert wrote an excellent entry on his website about the 5 smart strategies for real estate investing.  This article is copyright Jeff Adams and Adams Publishing Group, Inc.,  and we in no way take credit for this article, but are happy to share it out to you, our readers. You can read the article in the original format on his website.

Realestate_f_improf_400x400Every homeowner has a fortune; one that is tied up in something they will never / want to never sell. What is that, you might ask? The HOME! Real estate investing considers owning a home equivalent to owning a treasure! Imagine, thus, if you could have two homes; one to live in and one purely for investment. Your future would stand sorted!

You can live off the income from selling the house or you could put the home up on rent and expect a fixed monthly sum to help you run your expenses. Either way, real estate investing guarantees one of the best returns among all other types of investment.

If you're lured into the prospect of a comfortable life funded by income from your real estate investments, you will need these 5 smart strategies to invest to your advantage.

  1. Know your Potential
    If you've been living from paycheck to paycheck, be realistic. You can't wake up one morning and decide to invest in commercial real estate. Know your potential and invest accordingly. The safest place to begin, as a first timer, would be residential real estate. Consider flipping a home or investing in a foreclosure to make a good profit from your first deal.
  2. Run the Numbers
    Consider how much money you have, the loan amount you will require for investment, whether you have enough for your days to run smoothly and how much you're willing to spend on your first investment. A financial planner can contribute with valuable inputs and help you devise a sound financial strategy.
  3. Take One Step at a Time
    If you're a beginner investor, investing in more than one property at the same time is not advisable. Take your time to look at as many potential properties; however, industry expert Jeff Adams recommends that you invest your time, money and effort into only one property – the best of the lot. This gives you ample of time to focus entirely on that one investment. Since it's the beginning, you will have a lot of mistakes to learn from and giving yourself room to grow will benefit you in the long run.
  4. Formulate your Plan of Action
    Before you make an investment, you must plan your investment strategy. This will help you narrow down your search while looking for potential properties. Will you flip the home after renovating it? Will you put it up for rent? Or will you consider turning it into a commercial space for higher gains? Remember to plan your strategy based on your financial input.
  5. Remember the Market Fluctuates
    At present, the real estate market is gradually picking up pace and property rates are expected to rise. This is a good time to make an investment and this also gives you an edge as an investor to squeeze buyers into purchasing your property before market rates increase further. However, consult with a real estate agent or a professional to help you read trends in the market.

Remember that the best strategy with any real estate investment is investing in the right place, at the right time and at the best price
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