Depending on how the real estate investment is structured, and the management necessary to administer the properties, foreign investors interested in real estate investments can qualify for the E2 visa. However, this option is rarely available for less than a $400,000 total cash investment and requires the purchase of numerous residential properties or one large commercial property.

As an alternative, many of our clients look to enter the real estate business in the United States through Property Management. The initial investment is much less and allows the investor to build a wealth of relationships in their new community.

Introduction

The E2 visa is a non-immigrant visa that allows foreign investors to live and work in the United States to further their business investment. This visa category is designed for foreign nationals from countries that have a treaty of commerce and navigation with the United States. In this article, we will explore the E2 visa requirements, application process, and benefits for foreign investors, with a focus on real estate investments.

What is an E2 Visa?

An E2 visa is a type of non-immigrant visa that allows foreign investors to enter and work in the United States to develop and direct the operations of an enterprise in which they have invested or are actively investing a substantial amount of capital. The E2 visa is also known as the Treaty Investor Visa. This visa is particularly attractive to foreign investors who wish to engage in real estate investments, as it provides the opportunity to manage and grow their business within the U.S. market.

Real Estate Investment: Property Management Industry

In the U.S. the Property Management industry has become one of the fastest-growing industries in the country. Property management companies play a crucial role in this industry, offering services that range from tenant screening to maintenance and rent collection. Since the housing crisis in 2008, many American families have preferred to rent instead of own their homes due to the reluctance to be overburdened by loans and home mortgages.

Additionally, many young people, who in past years would have bought their first property are instead electing to rent. This is due to student loans, personal debt, and the flexibility that renting enables them. To provide perspective, over one-third of all residential households in the United States are rentals, and, on average, only 20% of those rentals are being managed by a professional property management serviceWith over 34 million rental locations in the United States, the market has only continued to grow as real estate investors have continued to buy more residential properties.

How Can I Enter the Property Management Industry?

All of this has created a major opportunity for property management businesses to professionally manage properties. For landlords who prefer a more passive real estate investment, it is important to understand that a bona fide enterprise refers to a real, active, and operating business that generates goods or services for profit. A number of Property Management franchises exist in the market that allow franchisees who are looking to own a low-cost, easy-to-learn business.

The Property Management industry has a number of favorable factors for any potential franchisee, including steady and recurring revenue streams, continued growth regardless of the economic climate, and providing services that will always be in demand. All of these factors are very favorable for any person looking to enter the industry through a franchise option.

Property Management Franchise: Good Investment for an E2 Visa?

Property Management franchises by and large are good E2 visa investments for foreign investors interested in entering the U.S. real estate market for a number of reasons. The investment amount, typically ranging from $80,000-$110,000 is one of the lowest E2 investments possible. Additionally, Property Management is a highly profitable business that is scalable.

Also, a number of Property Management franchisors offer their franchisees strong support and training. So that they can feel confident when building their business.

What Does Being a Property Management Franchisee Require?

A property manager’s role is multifaceted: to find and screen tenants, process rent payments, provide property inspections, maintenance & repairs, and process evictions when necessary. Property management companies often provide comprehensive training and support to their franchisees, ensuring they are well-equipped to manage properties effectively. As the owner of the business, the candidate would be selling their services to property owners and investors. Working with real estate agents and others to gain business referrals, and managing their business and staff.

As technology has enabled individuals to work from anywhere and with the improvements in property management software, it has never been easier to be a Property Management franchisee. Depending on the franchise, you also have to expect to work from 9 am to 5 pm. Very different than franchises in other industries (e.g. fast-casual and pet care).

E2 Visa Requirements

To qualify for an E2 visa, foreign investors must meet certain requirements. These include:

• Being a national of a country with which the United States has a qualifying treaty or international agreement.
• Having invested, or being actively in the process of investing, a substantial amount of capital in a U.S. business.
• The business must be a legitimate enterprise, not a sham or a front.
• The business must create jobs for U.S. citizens.
• The investor must have control of the business.
• The investor’s funds must be from a lawful source.
• The business must be an active investment, not a passive one.

In the context of real estate investments, the E2 visa requirements can be met by investing in a property management company, a real estate development project, or a property management business. The key is to demonstrate that the investment is substantial, active, and has the potential to generate a reasonable return on investment. This means that the real estate business should be a bona fide enterprise, actively managed and capable of successful operation, rather than a passive investment.

Application Process

The application process for an E2 visa involves several steps. These include:

• Submitting a petition to U.S. Citizenship and Immigration Services (USCIS) to apply for an E2 visa.
• Providing documentation, including proof of nationality, proof of investment, and a detailed business plan.
• Demonstrating that the investment is substantial and has the potential to generate a reasonable return on investment.
• Showing that the business is legitimate and has the potential to create jobs for U.S. citizens.

In the case of real estate investments, the application process may involve providing additional documentation, such as property deeds, rental agreements, and financial statements. This helps to establish the treaty investor’s financial commitment and the present or future capacity of the business to generate more than enough income to support the investor and their family.

Top 5 E2 Visa Real Estate Investment Options

Next, we’ll be showing 5 business opportunities in real estate which are eligible for the E2 investor visa, specifically designed for foreign investors interested in the U.S. real estate market. We’ve seen clients successfully obtain the E2 visa through these means, or clients that worked with immigrations attorneys and they might have knocked on a franchise path for the E2 visa for a real estate investment related business.

1. Real Estate Property Management

For those looking to invest in the U.S. real estate market, property management is a great option for E2 visa holders. Property management companies can handle all aspects of property maintenance, making it easier for investors to manage their rental properties. In this scenario, investors can purchase a rental property and hire a professional property manager to take care of all aspects of the property’s maintenance—from tenant screening to rent collection.

This type of investment offers passive income and is ideal for those who do not have experience with residential real estate investments or who want an additional source of income without investing in another business venture, because you don’t necessarily need a franchise for this.

2. Long Term Residential Property Management

For investors looking for a more hands-on approach to real estate investment business, it is crucial to understand that a bona fide enterprise refers to a real, active, and operating business.

Property management can be a great option. This type of investment involves buying and managing single family homes or multi-family units for long-term tenants who rent out the property for several years. Investing in this type of venture requires you to build relationships with tenants and to handle any repairs or maintenance that comes up during their tenancy period, mostly up to 12 months though.

3. Buying an Existing Portfolio

Purchasing an existing real estate portfolio is another great option for foreign investors interested in the U.S. real estate market, whether through a franchise model or non-franchise model. This type of investment involves buying a collection of properties that have already been managed by someone else and are generating income immediately.

This can be an attractive option for those looking to enter the U.S. real estate market quickly, without having to start from scratch or deal with any learning curve associated with investing in the U.S.

4. Vacation Rental Property Management

Vacation rental property management is a great option for E2 visa holders, especially those looking to generate income from short-term rentals, with little investment as well. Property management companies can assist in managing vacation rental properties, ensuring proper maintenance and generating income.

This type of investment involves buying and managing vacation rental properties rented on a nightly or weekly basis. The benefit of this venture is the potential for generating high returns from relatively small investments when compared to more traditional real estate investments.

5. Bath and Kitchen Renovation

Bathroom and kitchen renovation is an increasingly popular way for E2 visa holders to generate income through real estate investment. People are constantly renovations to theseto these two house living spaces, especially during the COVID-19 pandemic, where people found themselves spending more time at home.

The key is to focus on renovations that stand out from other homes in the area, such as adding new appliances, modernizing the décor, or creating luxury features like high-end finishes. This type of investment requires some knowledge of construction and design, but can yield a very lucrative return on your initial investment if done right.

Benefits for Foreign Investors

The E2 visa offers several benefits for foreign investors, including:

• The ability to live and work in the United States to develop and direct the operations of an enterprise.
• The opportunity to invest in a U.S. business and generate a reasonable return on investment.
• The potential to create jobs for U.S. citizens and contribute to the local economy.
• The ability to bring family members to the United States, including spouses and children.
• The opportunity to apply for permanent residence in the United States after a certain period of time.

In the context of real estate investments, the E2 visa offers foreign investors the opportunity to invest in a property management company, a real estate development project, or a property management business, and to generate a reasonable return on investment. Additionally, the E2 visa allows foreign investors to bring family members to the United States and to apply for permanent residence after a certain period of time. This makes it an attractive option for real estate investors looking to establish a successful operation in the U.S. market.

Conclusion

In conclusion, there are a variety of real estate options for E2 visa holders to explore. Whether you want to focus on property management, long-term residential rental properties, existing portfolios, vacation rental properties, or bathroom and kitchen renovations, there is sure to be an investment option that works for your budget and goals. With some research and guidance from qualified professionals, you can find the perfect venture that will help you build wealth in the U.S. market.

If you want to find out more about real estate or any other business, make sure to check out our website Visa Franchiseand our sister website Vetted Biz!