Investment Property in Orlando: Will Buying Property in the US Help You Get a US Residency Visa?
The question of whether buying property in the US helps to obtain US residency is somewhat confusing, as both a yes and a no answer can paradoxically apply.
With many Brits looking for such ‘sought after’ status, this is what I have found from my experience with British buyers.
The investor E visa application is the most popular residency route among immigrants for a new or established business enterprise in the US. It provides a relatively easy path.
However, careful research and planning will be necessary to avoid an expensive and disappointing outcome.
With many Brits buying holiday homes in Florida for rental and investment reasons, many are asking if buying their property can help them gain resident status in the US.
Anyone hoping for a visa based on the purchase of a single home in the US will be sorely disappointed as they will never be able to justify a business investment reason.
However, a carefully presented visa application involving the purchase of 3 or more homes along with the submission of a complete and detailed business plan could be successful.
If a visa application is poorly filed or shows that the property is a “passive investment”, it will usually be rejected. Anyone considering an application is encouraged to use an experienced professional with a proven track record in preparing such a business plan.
Buying a property on its own will always be considered a passive investment; however, if the application clearly demonstrates an “active real estate business,” an E2 visa may be issued.
It is also imperative to show that a “substantial financial investment” was made prior to applying and while no actual sum is listed anywhere, it really should not be less than $100,000.
Real estate loans are allowed, although in the event that a sufficient projected business profit margin is necessary, as expense and risk increase, so does the scrutiny of the issuing immigration authority.
Of equal importance is the need to clearly show that the business will be viable and will be able to support the owner’s future living expenses, etc.
The supporting business plan must clearly demonstrate a defensible reason why it will create future employment, plus as a guide, projected generated earnings of at least $50,000 per year would generally be expected.
Clarifying the property, as an important role in the business plan, is essential, as would be the case with proposals such as a guest house, hotel, or property rental company.
Vacation rental homes can be treated similarly to a hotel purchase in that purchased property serves a similar function, however homes should never be purchased for personal use!
Real estate assets purchased specifically for a rental business, of course, require regular maintenance and rental reservations require the appropriate staffing necessary for business needs, it’s no wonder property management is a popular form of property proposition. investment.
In Central Florida, especially in the Disney catchment areas, there is still a steady demand for “good quality, well run” property management companies, even though several vacation rental companies already operate in the area.
The ever-increasing demand for good quality management is due to many startups adding to their home portfolios, apparently lowering the business operating standards of some businesses.
This issue was the underlying reason for my company’s decision NOT to engage in property management, despite the obvious financial temptation.
In 1985, there were very few vacation property management operations near Disney, as hotels were generally the primary form of rental accommodation.
Over the ensuing years, we arranged thousands of property sales to British buyers, all of whom bought for personal holiday use and potential rental income while away.
Given the importance our buyers place on property management, we decided that we should do everything possible to provide the best possible service.
As such, it would be best for us to remain fully independent and, unlike many of our real estate competitors, we resist financial temptation.
As a result, we continue to track and monitor the performance of some 700 property management firms in Central Florida, and the valuable information we obtain often helps our buyer clients.
There are believed to be over 50,000 British-owned homes in Florida, and of course many more are owned by other non-residents.
The constant demand for quality small and medium property management companies is naturally creating attractive investment opportunities for budding entrepreneurs looking for a new way of life.
Those interested in trying to keep their investment risk to a minimum and are nervous about investing cash in a new business venture may have a hard time finding a better alternative than a property-based management business.
Orlando investment properties purchased in the “sunny state of Florida” should continue to rise in value because property prices here remain much lower than many comparable states, such as California, where prices are almost 3 times as high! tall!
Those interested in more information on an E2 Resident or Orlando Investment Property visa application should contact Graham at Florida Countryside 08456 444 747
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