The question of whether buying property in the US helps to obtain US residency is somewhat confusing as, paradoxically, both a yes and no answer can apply.

With many Brits looking for such a “sought after” status, here’s what I’ve found from my experience with British buyers.

The Investor E visa application is the most popular residency route among immigrants for a new or established business enterprise in the US It provides a relatively easy path.

However, careful research and planning will be necessary to avoid a costly and disappointing outcome.

With many Britons buying vacation homes in Florida for rental and investment reasons, many are asking if buying their property can help them gain resident status in the US.

Anyone hoping for a visa based on the purchase of a single home in the US will be sorely disappointed as it can never justify a business investment reason.

However, a carefully filed visa application involving the purchase of 3 or more homes along with the submission of a complete and detailed business plan could be successful.

If a visa application is poorly filed or shows that the property is a “passive investment”, it will normally be rejected. Anyone considering an application is advised to turn to an experienced professional with a proven track record in preparing such a business plan.

The purchase of a property by itself will always be considered a passive investment; however, if the application clearly demonstrates an “active real estate business”, an E2 visa may be issued.

It is also imperative to show that a “substantial financial investment” was made prior to applying and although no actual sum is listed anywhere, it really must not be less than $100,000.

Property loans are allowed, although a sufficient projected business profit margin will be necessary in this case, as as costs and risk increase, so does the scrutiny of the issuing immigration authority.

Of equal importance is the need to clearly show that the business will be viable and that it will be able to support the owner’s future living expenses, etc.

The supporting business plan must clearly demonstrate a defensible reason why it will create future employment, plus, as a guide, projected generated earnings of at least $50,000 per year would generally be expected.

Clarifying the property, as an important role in the business plan, is essential, as would be the case with proposals such as a guest house, hotel or property rental company.

Vacation rental homes can be treated similarly to a hotel purchase in that the property purchased serves a similar function, however homes should never be purchased for personal use!

Real estate assets purchased specifically for a rental business do, of course, require regular maintenance and rental bookings require the right staff needed for business needs, it’s no wonder that property management is a popular form of property proposition. investment.

In Central Florida, especially in the Disney catchment areas, there is still a constant demand for “good quality, well-run” property management companies, even though several vacation rental companies already operate in the area.

The ever-increasing demand for good quality management is due to the fact that many new companies are increasing their housing portfolio, apparently lowering the business operating standards of some companies.

This issue was the underlying reason for my company’s decision NOT to engage in property management, despite the obvious financial temptation.

In 1985, there were very few vacation property management operations near Disney, as hotels were generally the primary form of rental accommodation.

Over the next few years we arranged thousands of property sales to British buyers, all of whom purchased for personal holiday use and potential rental income while away.

Given the importance that our buyers place on property management, we decided that we should do everything possible to provide the best possible service.

As such, it would be best for us to remain fully independent and, unlike many of our real estate competitors, we resist financial temptation.

As a result, we continue to track and monitor the performance of some 700 property management firms in Central Florida and the valuable information we obtain often helps our buyer clients.

There are believed to be more than 50,000 British-owned homes in Florida, and of course many more are owned by other non-residents.

The constant demand for quality small and medium property management companies is naturally creating attractive investment opportunities for budding entrepreneurs looking for a new way of life.

Those interested in trying to keep their investment risk to a minimum and are nervous about pouring cash into a new business venture may find it difficult to find a better alternative than a property-based management business.

Orlando investment properties purchased in the “sunny state of Florida” should continue to rise in value because property prices here are still much lower than many comparable states, like California, where prices are almost 3 times more! tall!

Those interested in finding out more about an E2 resident visa application or Orlando Investment Property should contact Graham at Florida Countryside 08456 444 747

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