Last Updated on May 11, 2024 by Anda Malescu
The article discusses E2 visa for construction company. But before we explore real estate businesses you can invest in to obtain an E2 visa, it is important give you an overview of E2 visa.
What is E2 investor visa?
The E2 Treaty Investor Visa is a nonimmigrant visa designed for individuals who make an investment in an active commercial enterprise in the United States. The E2 Investor Visa allows a national of a treaty country to temporary come to the United States together with their spouses and children to live and develop their business. To learn more, visit our E-2 visa page.
Entrepreneurs and investors, who have the means to invest in a US business, often wonder what options do they have that are profitable and familiar to them but are also compatible with the requirements of the E2 visa.
Real estate investment for E2 visa
E2 visas require running a real and active business. While real estate investments can be a great opportunity, simply owning real estate is not enough to qualify for E2 visa because such ventures fail to show how the business is real and operating.
In other words not all real estate businesses qualify for E2 visa. Real estate holding companies for example, do not qualify for E2 visa because such companies are not actively involved in business but instead are isle investments waiting for property values to increase. The US Department of State Foreign Affairs Manual (FAM) specifically mentions examples like “undeveloped land” or “stocks” as not qualifying for E2 visa.
Therefore, simply purchasing real estate through an LLC or other legal entity does not qualify for E2 visa. The focus is on actively running a real estate business, not just holding real property.
Here, we explore what kind of real estate businesses are a good fit for the E2 visa.
One often discussed investment option is the establishment or purchase of a construction business. Other investments in real estate businesses for E2 visa include short term rentals (Airbnb properties), property management companies, commercial properties, house flipping and real estate development.
What real estate businesses are good fit for E2 visa?
The real estate businesses that are a good fit for E2 visa are:
Real estate development
First, before we start discussing how a construction company can work for an E2 visa, we need to make a distinction between a construction company and a real estate development company.
A real estate development company can have activities that range from the renovating and leasing of existing buildings to purchasing empty land, obtaining the necessary permits, securing financing, building the structures, and renting property, managing it, and ultimately selling it.
A real estate development business can be difficult to qualify for E2 visa as it will be difficult to justify a need for permanent staff and prove it is an active ongoing business that is constantly in operation.
However, many potential E2 investors have considerable experience in real estate development and seek to create a business that is consistent with their expertise. Since many real estate developers also handle the construction process in-house, a construction company is a logical choice for them.
Construction company
Construction companies on the other hand only handle the construction process itself, making sure a building is built up to the specifications provided by the developer’s engineers and architects.
Construction companies are not investors in the projects they execute, and their pay is not contingent on the sale or lease of the building in question. Real estate development is different from construction, although many developers also handle the construction process themselves.
Despite not being an easy business to set up, with stringent licensing requirements, starting or purchasing an existing construction company for E2 visa is viable option for investors with experience in the field. Currently, in light of raising real estate prices, construction is facing a boom with high demand for its services.
Below are some of the types of construction companies in the US:
Important steps to start a construction company in the US:
Property management company
Property management companies, whether specializing in short-term rentals such as Airbnb or Vrbo, long-term rentals or commercial properties, offer a wide range of services. They typically handle everything from finding tenants, listing properties for rent on various platforms and setting rent prices to property maintenance and repairs. To efficiently manage their portfolio of real estate, property management companies often hire staff like maintenance personnel (cleaning, plumbing, handyman, others), leasing agents and superintendents.
Here’s the key takeaway for property management companies and E2 visa: to qualify for E2 visa, the company needs to manage more than just the investor’s own properties. This is especially important if the investor only owns one or two properties. To be successful, you should strive to build a client base and get other property owners as clients before applying for the E2 visa.
Property management companies can be a great fit for E2 visa.
House flipping
House flipping businesses are not ideal for obtaining an E2 visa unless the investor owns a large number of properties.
House flipping, also known as real estate flipping, is a business strategy where investors buy undervalued properties, renovate them to improve their condition and value and then sell them for profit in a short timeframe.
While common in the real estate, house flipping is often viewed as too passive to obtain an E2 visa. However, if the investor has proven experience in house flipping, and prior to E2 application the investor acquires few properties for flipping and can show the need to hire full-time employees, then the house flipping business model may qualify for E2 visa.
Malescu Law can assist
Our E2 visa lawyers have successfully helped clients obtain E2 visas with real estate business models.
If you are interested in obtaining an E2 visa for construction company or through investments in other real estate businesses, contact us or book a consultation with our E2 visa lawyers in Miami Florida USA to discuss the next steps.
We serve individuals and companies across all 50 states, the District of Columbia and Puerto Rico.
Malescu Law P.A. – Business & Immigration Lawyers
