Obtaining a U.S. visa under the EB-5 program

Investment visa and capital appreciation in the United States: the Moxy by Marriott hotel project under the EB-5 program

The prospect of U.S. residency and capital appreciation is the perfect combination for wealthy foreigners. The new investment project of construction of the Moxy by Marriott hotel in Charleston within the framework of the EB-5 immigration program is a profitable offer for those who expect not only to move, but also to make a profit.

EB-5 Investment Program 

The United States of America presents several visa programs, but only one of them leads to the issuance of a passport of a citizen of the country. The EB-5 investment program has been successfully operating since 1990. Its uniqueness lies in the stability of the conditions, which have not changed over the years. For the first time, serious amendments to the program were adopted in 2019, they affected the main positions - the size of investments and the ways of participation of foreign applicants.

The key to the success of EB-5 lies in the mutual benefit of the parties. Foreign nationals receive a unique opportunity to obtain a Green Card in exchange for investment, and the U.S. authorities channel this investment to finance various projects. Facilities that are located in rural areas or in regions with high unemployment rates (TEA) have priority eligibility for subsidies. Since 1992, Regional Centers (RCs) have been responsible for the efficient allocation of funds. Investments through intermediaries are the most profitable and relatively cheap - the minimum cost of participation in the program in this case is $900 thousand without the need for personal project management. A similar amount would be required to finance facilities that are located in the target employment area. For areas not included in the TEA, the investment amount is not less than $1.8 million.

Moxy by Marriott hotel construction project under the EB-5 immigrant visa program

Acquisition of hotel real estate in 2020 has become a priority for foreign investors. Therefore, the project of construction of a luxury hotel proposed as an object of financing within the framework of the EB-5 immigrant visa program has a great chance of success. Marriott International Corporation, which includes a network of five-star hotels Moxy by Marriott, is known all over the world. It unites 30 brands and 7.2 thousand properties located in 134 countries. In 2014, it was launched the construction of hotels oriented to millennials - a generation of people who met the new millennium at a fairly young age. The main idea is to create modern hotels with a quality level of service and democratic prices. 

Conditions and prospects for participation in the program

Investment in the construction of the Moxy by Marriott hotel in the USA is a profitable deposit with the prospect of receiving a good income. The terms of the EB-5 immigration program provide for the return of assets not earlier than in 5 years. This period coincides with the scheduled dates of the sale of the hotel. In addition to the visa, which gives the applicant and his family members the right to reside legally in America and to apply for citizenship in the future, the investor receives an annual return on invested capital at a rate of 5%. American immigration legislation defines the maximum investment amount for participants of the EB-5 program as $13.5 million.

Brief characterization of the investment object

Investing in real estate is a complex and deliberate decision, which depends on many factors: the liquidity of the object, the inflation rate, the approximate price at the time of sale, etc. The prospects of investing in the construction of the Moxy by Marriott hotel were evaluated by analysts of the Milken Institute. The reputation of Marriott International Corporation, into whose network the hotel complex will be included, is beyond doubt. Therefore, the main criterion for assessing the reliability of the project was its location. Charleston in South Carolina is an economically developed region of the USA. The port city is known as both an industrial and tourist center. Charleston is home to important facilities such as a military base and a Boeing passenger airplane assembly plant. Employees of the Milken Institute noted that the site of the future development is optimally suited for a fashionable hotel, focused on travelers and businessmen. 

Technical characteristics of the future hotel complex:

hotel area - 6.095 thousand sq.m; number of floors - 7;

number of rooms - 131;

number of parking places - 98.

The construction of the hotel will cost $39 mln. A maximum of 15 investors will be able to participate in the project.

To summarize!

Many U.S. companies that submit their projects for participation in the EB-5 immigration program consider obtaining a visa as the main and final goal of cooperation. This misses important factors - the liquidity and profitability of real estate. Foreign citizens who consider investments as an opportunity to multiply their capital, in addition to the main goal - moving to the U.S., choose the most promising projects. Investments in the construction of a luxury hotel of the famous brand Moxy by Marriott - a reliable deposit with optimistic forecasts for profit.

For more information on this issue, please contact the specialists of GARANT.in. We recommend not to delay in making a decision, as the number of investors in the project is limited. 

Yuriy Mosha - on the advantages of investment visas: EB-5 in particular

Due to the submission by President Zelenskyy to the Ukrainian parliament of amendments to some Ukrainian laws on citizenship, the topic of a second passport has been on the pages of the national mass media for the past few weeks. Experts and economists analyze the advantages of dual citizenship in different ways. Some even calculate possible dividends from granting Ukrainian citizenship to foreigners, first of all to investors who are ready to invest their funds in the development of the country's economy. However, according to last year's study of investment attractiveness of countries, Ukraine ranked 58th. This is the lowest position in Europe. In addition, according to the results of 2019, the country fell in the world ranking of passports by 2 positions.

Given this fact, I would like to dwell on another point, which is relevant for wealthy citizens of Ukraine who seek to keep their native passport, but at the same time wish to invest in the economy of progressive countries. We will talk about investment visas - a popular way to obtain a residence permit with the possibility of naturalization. According to experts, the most attractive European countries providing investment visas are Great Britain, Cyprus, Portugal, Greece, Malta and Spain. Globally, the undisputed leader is the USA, followed by Australia, Singapore and the UAE.

Among the conditions for obtaining a residence permit in these countries, the most common are: investment in real estate, replenishment of the state endowment; purchase of bonds, promissory notes, as well as investment in business (in the authorized capital of enterprises). The last condition is present in the Tier 1 Investor visa program of Great Britain and EB-5 of the United States of America. By the way, these states are loyal to the presence of dual citizenship, which is not the case with Germany, Norway, Denmark and the UAE.

According to the investment attractiveness rating released at the end of 2018, the United States is the leader in attracting business investment. The states managed to attract $ 296.4 billion of direct investment from foreign investors, which is 8.7% more than in 2017. Most of the investment in US businesses comes from private investors from China. Chinese are also the largest number of EB-5 investment visa applicants: of the 9,602 visa applications in 2018, 4,642 were from investors from China. The number of applicants from Ukraine does not exceed a few dozen per year (note: the total number of immigrants from Ukraine to the U.S. grows annually). The waiting time for processing a Ukrainian application under the EB-5 program does not exceed the amount of time required to process any other immigrant visa application (9-18 months on average). If the dual citizenship law goes into effect, I will be extremely interested to see the number of EB-5 visa applicants.

The main advantage of EB-5 immigration is that there is no requirement for English language proficiency, special education, or work experience. Failure to meet these criteria is often the reason for denial of other visas in the United States. All that is required to obtain an EB-5 investment visa is the applicant's willingness to invest between $900,000 and $1.8 million dollars in the U.S. economy. The investment threshold varies from region to region.

The most attractive investment regions under the EB-5 program are New York, California, Texas and Florida. The required investment in these regions is $900,000. According to the terms of the program, the area where the funds are contributed is not important. The main condition of EB-5 is the stable development of the invested project over the next 5 years and the creation of 10 full-time jobs. EB-5 recipients can independently determine the area of investment, but I recommend that specialized companies deal with specialized companies in order to eliminate risks. Ideally, an immigration consultant and a lawyer should handle the preparation of the EB-5 visa application package. An immigration consultant helps to choose the investment region and the amount of money to be invested.

Second Passport is a partnership fund specializing in New York City construction. The fund owns its own assets and works with a well-known New York developer whose land is owned and not tied up in loans. The Fund has a long history of successfully completed projects. Its core business is the construction of social facilities: charter schools, for example. These are semi-private, semi-public facilities. The first facility has already been launched. It is located in a modern building near the center of New York City. The second facility is under development. In the United States, such facilities are a stable and long-term business.

The foundation's next project is a shopping mall. The construction region is ideal for providing jobs. New York is the largest and richest city in the United States. The head of the fund is always ready to meet potential investors in person. He speaks fluent Russian. As a specialist working in immigration for over 10 years, I would recommend EB-5 visa applicants to focus on small but promising investment projects. Large projects are not always successful. They involve greater risks. Funds spent by the United States on failed projects are not reimbursed and the EB-5 visa is revoked.