Buying U.S. Real Estate vs EB-5: Why Property Alone Won’t Get a Green Card

Purchasing property in the United States is a common dream for foreign investors seeking stability and potential appreciation. However, conflating simple real estate ownership with securing an employment-based immigrant investor visa, specifically the EB-5 program, is a critical misunderstanding. This article clarifies the fundamental differences and why buying a house or commercial building, by itself, does not equate to an EB-5 application.

The EB-5 Program: Investment for Green Card

The EB-5 Immigrant Investor Program offers a path to permanent residency (a Green Card) in exchange for a significant capital investment that creates or preserves at least ten full-time jobs for qualifying U.S. workers.

Key Requirements of EB-5 Investment

• Minimum Capitalization: The investment must meet specific monetary thresholds, currently either $1,050,000 or $800,000 if the investment is made in a Targeted Employment Area (TEA).
• Job Creation: The investment must directly or indirectly result in the creation of ten full-time jobs for qualifying U.S. workers within two years of admission to the U.S. as a conditional permanent resident.
• At-Risk Capital: The funds must be truly "at risk," meaning the investor stands to lose the principal amount if the investment fails to perform as projected.

Real Estate Purchase: Ownership vs. Investment Vehicle

While U.S. real estate can be a valuable asset, simply buying a residential home or even a multi-unit commercial property does not automatically satisfy the EB-5 mandates.

Why Direct Property Purchase Fails the EB-5 Test

1. No Guaranteed Job Creation: Buying a personal residence creates zero qualifying jobs. Even purchasing an apartment complex generally does not qualify unless the investor actively manages it in a way that employs ten full-time staff, which is rare for passive ownership.
2. Passive Income vs. Active Enterprise: EB-5 requires an investment in a new commercial enterprise actively managed by the investor or through a qualified Regional Center. Owning rental property is typically viewed as passive income generation, not the required active business enterprise.
3. Source of Funds Scrutiny: The EB-5 process requires meticulous tracing of the source of funds. A simple property sale might not easily demonstrate the required capital was invested specifically for the EB-5 purpose.

The crucial distinction lies in intent: Real estate acquisition is typically wealth preservation; EB-5 is capital deployment structured specifically to generate U.S. employment.

The Role of Regional Centers

Most EB-5 investors utilize a USCIS-designated Regional Center. These centers pool capital from multiple investors into large-scale projects (often commercial real estate developments, infrastructure, or manufacturing). When investing through a Regional Center:

• The investor's role remains passive.
• Job creation is calculated using indirect and induced job creation models (e.g., construction jobs generated by the development).
• The project itself must meet strict USCIS guidelines regarding economic impact and structure.

If an investor buys a commercial building directly, they must manage the enterprise themselves and prove the ten jobs were created. If they invest via a Regional Center, the Center manages the project, and the job creation is calculated based on the project's overall economic activity, often utilizing the Input-Output Model.

Conclusion: Separate Goals, Separate Paths

Buying U.S. real estate is a sound investment strategy, but it is fundamentally separate from the EB-5 immigration pathway. To obtain a Green Card through investment, the capital must be demonstrably "at risk" in a new commercial enterprise designed specifically to create ten U.S. jobs. Property ownership alone, absent this specific structure and job creation, will not satisfy the requirements set forth by U.S. Citizenship and Immigration Services.