TX RE Broker Lic #0508393
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We comb through multiple sources and have an extensive network to help you find the investment that meets your needs. Whether you are purchasing an apartment complex, student housing, self-storage facility, or a retail establishment, we will take great care and pride in tailoring to your needs.
Texas Future Growth
According to CBRE, the Dallas/Fort Worth area has been ranked the #2 top metro for property investment in the Americas for the last two consecutive years. The number of people living in Texas has grown from 22.5 million about a decade ago to more than 28 million and could rise above 40 million over the next quarter century, enabling it to outperform the nation as a whole, in coming years.
The Dallas Fed projects Texas employment will grow between 3 percent and 3.5 percent in 2018, and the state’s economy could grow by at least 4 percent, well above the 2.5 percent to 2.7 percent in economic growth projected for the United States this year. The state unemployment rate was 4.1 percent in April.
The Dallas/Fort Worth metro continues to expand and is driven by healthy fundamentals, strong in-migration, a diversified economy, and strong job growth. The metro added over 67,100 jobs year over year, as of September 2017, and expanded by 2.7 percent, nearly double the national rate of 1.4 percent.
The apartment supply in the Dallas/Fort Worth metro area should continue to thrive. There are nearly 29,000 units in the planning stages and an additional 24,000 units underway. However, the robust growth in supply should not present much of an issue. According to CoStar, the prime renter cohort (ages 20-34) is expected to expand by 9 percent through 2022. The young demographic, healthy economy, and strong job growth should continue to keep demand high over that time period.
Dallas has emerged as the financial capital of the Southwest. As of September 2017, employment in this sector expanded by 3.9 percent, more than double the national rate of 1.7 percent. Dallas also accounts for nearly 8 percent of all the financial services jobs in the Southwestern region. Moody’s Analytics attributes the financial services industry’s emergence to the exceptional performance of the housing market and the high-profile relocations of employers such as State Farm, Liberty Mutual, and Toyota, among others.
Foreign Interest in U.S. Commercial Real Estate
Real estate has long played an integral role in global investors’ portfolios, but recently U.S. CRE has separated itself from other subsectors within the class. From a top-down perspective, the U.S. market, which has largely recovered from the financial crisis and is fueled by strong job creation and business expansion, is viewed as stable. The market compares favorably to regions such as Europe, where the economic turmoil caused by Brexit has turned off many would-be investors.
From a micro perspective, U.S. CRE offers the potential for higher returns relative to the modest prime capitalization rates in London and parts of Asia. At the same time, the U.S. market is renowned for its scale and liquidity, providing foreign investors the flexibility to exit their investments if they decide to invest their capital elsewhere.
Investor Immigration Options
- EB-5 Regional Center Investment
Pro: Low $500,000 U.S. payment for a green card, passive involvement
Con: Money is managed by someone else
Invest $500,000 U.S. in an EB-5 government-approved regional center for a period of about five years. In around 18 months, you obtain conditional green cards that entitle you and your immediate family to enter the U.S. You can live, work and study anywhere in the country and there are no education, age or English language requirements.
This is a passive investment in which your money is invested in someone else’s commercial project, such as a hotel, residence complex or office tower. The catch here is that your money, through the project, must employ 10 or more American workers for a period of two years. Once this requirement is established, you can then apply for permanent resident green cards. At the end of five years from the date of your U.S. entry, the money is returned to you.
These are commercial enterprises and therefore your money is at risk. However, the EB-5 program has been in place for over 20 years and it has an excellent record.
- EB-5 Direct Investment
Pro: Complete control of the money
Con: High payment of $1 million for a green card, active involvement required
This one is a bit different than the passive EB-5 option above. This time, it’s your shop.
To get conditional green cards for you and your family, you invest $1 million U.S. in your own business and directly employ a minimum of 10 people for two years.
Processing takes about 18 months, although if you combine this with the E-2visa below, you may be able to enter the U.S. in about six months.
After demonstrating that you have complied with the two-year employment of a minimum 10 workers and maintained your minimum $1 million invested, you can qualify for permanent green card status.
If you invest in a high unemployment area of the United States, the amount required to qualify may be only $500,000 U.S. This is a good option to combine with a possible franchise scenario, as with a restaurant or hotel chain.
- Inter-corporate Transferee
Pro: Cheap way to get a green card
Con: Requires support of a petitioning company
If you are transferred from your company abroad to an affiliated U.S. company to work as a manager, executive or person with specialized knowledge, you may be entitled to obtain a green card. Think of a Toyota manager going to the U.S. to run a subsidiary plant.
There are a couple of particulars before you can make a transfer. 1. You must have worked for the affiliated company abroad for a period of at least one year in the last three years. 2. Your job in the U.S. must be similar to the job you were performing at home.
Processing time for inter-corporate green card transferees is about 18 months.
- E-2 Work Visa
Pro: Fastest way to get into the USA to work
Con: Complicated to get permanent residence without the EB-5 direct addition.
How about hiring yourself to work in the U.S.?
If your country of citizenship has an investment treaty with the United States, you may be eligible to obtain an E-2 visa to work for a company you form in the United States. Basically, you are the sponsor as well as the immigrant employee.
Investment requirements vary according to the nature of the company and its industry sector. On the low end, around $75,000 U.S. could cover it, although $200,000 and up would make things easier.
Under the E-2, visas are granted for periods of up to five years and are renewable indefinitely. Spouses of E-2s are able to obtain blanket work authorizations to work anywhere in the U.S., as well.
E-2 visas can offer a speedy entry to the USA while serving as a stepping stone to an EB-5 direct green card.