The document discusses the EB-5 visa program, which provides a path to U.S. residency for foreign investors who invest a minimum of $500,000-$1,000,000 in commercial projects in the U.S. that create jobs. There are two options for EB-5 visas: individual investors can start their own business, or invest through a Regional Center. Regional Centers make the process easier by pooling investments and having more flexible job creation requirements. The document provides information on eligibility, requirements, and success stories of EB-5 projects to help real estate agents work with foreign clients who may be interested in the EB-5 program.

1. April 2011 to local, international & lifestyle real estate
4THE INVESTOR’S VISA
Attracting Global Real Estate Investors
The U.S. is known as the land of opportunities and entrepreneurial spirit, and has long attracted
global business investors from around the world. With often-intertwined interests in commercial
investment, residential and recreational properties, one transaction with a wealthy, well-connected
individual from another country can lead to several more attractive opportunities.
But foreign investors also face additional complexities in purchasing and using a
U.S. residence. Immigration, tax, currency and financing issues all play a bigger
role for global investors. (See the October 2010 issue of Global Perspectives for
a complete overview of overcoming these and other barriers.)
The EB-5 visa has emerged as one important tool for those willing
to invest in the U.S. as a means of obtaining U.S. residency status.
It’s not a simple program. But any real estate agent interested in
working with foreign clients of substantial means will benefit from a
solid understanding of the EB-5.
This issue of Global Perspectives helps you come up the learning curve on
the key aspects of the EB-5 program, including implications and specific action steps
for real estate agents. Inside, you’ll also find an update on anti-money laundering efforts, another
important issue to be aware of when working with large cross-border transactions. GP

2. 4THE INVESTOR’S VISA
THE
EB-5 VISA
GET ACQUAINTED WITH THIS PATH TO U.S. RESIDENCY, WHICH CAN GENERATE
GLOBAL REAL ESTATE
OPPORTUNITIES If your business has a global focus, you have probably encountered foreign nationals who would
like to purchase property in the U.S. but are deterred by visa limitations that restrict their ability
to live in the U.S. for extended periods. For most immigrants, the road to permanent residency
via the green card can be long and complicated. However, there is a shortcut for those with
significant financial resources—the EB-5 visa.
Known informally as the investment or entrepreneurial visa, the EB-5 encourages foreign
nationals to invest specified amounts of money, typically $500,000 or $1,000,000, in
commercial enterprises or development projects that create jobs for U.S. workers. In return,
they receive conditional permanent residency. While other types of visas may have waiting
periods or long delays in processing, the EB-5 has no waiting period after approval. The
government is authorized to grant 10,000 EB-5s per year, but has never met its quota.
2 ~ Global Perspectives April 2011

3. Are your international buyers a
good fit for the EB-5?
There are many scenarios under which
the EB-5 might be the right answer to an
international investor’s visa-related
residency issues. For example:
n Individuals, couples and families that
EB-5 applicants who invested $1,000,000 in
(and managed) a new commercial enterprise
projected to create 10 new jobs would receive
green cards for themselves and their families.
By 1992, few EB-5 visas had been issued.
In response, Congress passed the EB-5
Immigrant Investor Pilot Program to attract
more applicants by lowering the threshold
HOW TO FIND
AN EXPERIENCED
EB-5 LAWYER
Z
According to Ron Klasko, an attorney
prefer to live and raise their children in for investments directed at economically- specializing in EB-5 law, there are about
the U.S. disadvantaged areas called Targeted 20 top law firms in the U.S. with solid
n Foreign nationals on long waiting lists Employment Areas, or TEAs . 1 EB-5 experience. He gives this advice for
for other visas finding them:
The program also created Regional Centers,
n Entrepreneurs who want to start a a designation for approved development • Contact the American Immigration
U.S. business organizations which would direct pooled Lawyers Association (aila.org) or
immigrant investments for use in job-creating the Alliance of Business Immigration
n Affluent buyers looking for a second
projects in specific geographic areas. Under Attorneys (abil.com); each have EB-5
home in the U.S. and more flexibility to
committees.
use it the pilot program, EB-5 applicants could
invest $500,000 in a Regional Center project • Ask an immigration attorney to refer
If you’ve had prospects of substantial means you to an EB-5 specialist.
to receive a temporary green card, without
who fit these descriptions, you should learn having to run a business. • Contact a few of the top Regional
more about the EB-5 visa. Centers; they have lists of lawyers they
Two paths to residency trust.
A win-win arrangement • When you have several names, review
Today there are two ways to apply for the
their websites. Experienced attorneys
The EB-5 visa was designed to attract EB-5 visa: 1) under the original program as will provide information about the EB-5,
foreign capital to the U.S. specifically for job an individual investor/entrepreneur, or a list of their published articles, and a
creation. It benefits the housing market and 2) under the Regional Center Pilot Program, list of speaking engagements.
communities, particularly disadvantaged contributing to an investment pool.
ones, through investment in the local
Individual EB-5 requirements: Regional Center EB-5 requirements:
economy. EB-5 capital provides developers
with a low-cost source of funds in the now • Invest at least $1,000,000 in a new • Invest at least $1,000,000 or $500,000
tight capital markets. Real estate agents commercial enterprise, an existing into an investment pool funding a new
benefit because EB-5 green card holders are business reorganized as a new commercial enterprise or troubled
required to maintain a U.S. residence. enterprise, the expansion of an existing business within or affiliated with a
business, or a troubled business ;
2
Regional Center, depending on the TEA
Upon approval, an applicant receives green
lowered to $500,000 if the investment is status of the region.
cards for himself, spouse and unmarried
in a Targeted Employment Area.
children under the age of 21, and the ability • Create at least 10 new full-time jobs
to move freely about the country and in and • In a new business, create 10 jobs for U.S. either directly or indirectly through
out of it. workers, not including the immigrant and capital investment.
Origins of the EB-5 visa his or her family.
• Investor becomes a limited partner in
The Immigration Act of 1990 created the • In a troubled business, maintain the the venture, freeing him or her to live
EB-5 visa as a way to make the U.S. more pre-investment level of jobs for at least anywhere in the U.S.
attractive to wealthy individual foreign two years.
investors during a time when other
• Directly manage the business or
countries were offering significant
formulate business policy. (continued on page 4)
incentives to compete for foreign capital.
1
See Terms to Know on page 4.
2
IBID
Global Perspectives April 2011 ~ 3

4. 4THE INVESTOR’S VISA
THE EB-5 VISA (continued from page 3)
Qualified advisors are important The role of Regional Centers The benefits of Regional Centers to
EB-5 investors who are not interested in EB-5 applicants include:
Under either path, the U.S. Citizenship and
starting and managing their own business
Immigration Services (USCIS) requires n Projects associated with Regional
can invest in projects associated with a
extensive documentation to be submitted Centers have less restrictive job creation
government-approved Regional Center.
with the visa application on the commitment requirements, and jobs created indirectly
Regional Centers exist in almost every state.
of required funding, lawful source of funds, count toward the quota.
(See Regional Center map.)
and viability of the business plan and job
n Much of the business documentation
projections. As defined by the USCIS, a Regional
required for the application is provided by
Center is any USCIS-approved public or
An immigration attorney specializing in EB-5 the Regional Center.
private economic unit involved with the
law and a financial advisor can help an n Most projects are structured as limited
promotion of economic growth, improved
investor navigate the complex process. partnerships, meaning investors can live
regional productivity, job creation, and
An EB-5 attorney can provide a list of well- anywhere in the U.S. and meet USCIS
increased domestic capital investment in a
established Regional Centers into which requirements for management.
specific geographic area.
to inquire about investments, and provide
Most Regional Centers are in Targeted
guidance on legal matters. A financial advisor Partly because Regional Center EB-5
Employment Areas with $500,000
can examine the fit of the investments to the requirements are less restrictive and
investment requirements. Their activities
applicant’s needs. somewhat easier to meet, Regional Center
include:
investors now account for over 90 percent
“There are two kinds of risks in the EB-5,” n Looking for local projects which can of EB-5 applications.
says H. Ron Klasko, immigration attorney and benefit from foreign investment and
founding partner with Klasko, Rulon, Stock will meet USCIS requirements for There are currently over 100 Regional Centers
and Seltzer LLP in Philadelphia, and Chairman job creation. in the U.S., with many more applications in the
of the EB-5 Committee of the American pipeline. Regional Centers must meet ongoing
n Marketing projects in their geographic
Immigration Lawyers Association (AILA). reporting requirements to maintain their
region to foreign investors.
“As immigration attorneys, we deal with designation. If they fail to do so, they are
n Pooling individual EB-5 investors’ funds dropped by USCIS. For an updated list, go
issues of immigration risk. We insist that
to provide a low-cost source of capital to to uscis.gov and enter Immigrant Investor
investors have their own financial advisors
local developers. Regional Centers in the search box.
conduct due diligence on the Regional Center
Z
and the project to address the financial risk.”
(See sidebar on page 3 for advice on finding a REGIONAL CENTER
qualified EB-5 attorney.) A public or private economic unit engaged in the promotion
of economic growth, improved regional productivity, job
Once the EB-5 visa is granted, the individual creation and increased domestic capital investment.
and his family become conditional permanent
residents. After two years the visa holder TARGETED EMPLOYMENT AREA
must petition for removal of conditional sta- A rural area or an area experiencing high unemployment of at
tus by submitting proof that the original
least 150 percent of the national average.
requirements for the visa were met.
TROUBLED BUSINESS
A business in existence for at least two years that has incurred a net loss of at a
least 20 percent of its net worth in the previous 12 to 24 months.
4 ~ Global Perspectives April 2011
TERMS TO KNOW

5. Source: USAdvisors.org/EB5info.com
Regional Center Locations
Seattle
Olympia
Augusta
ta
Helena
Salem Bismarck
Montpelier
ier
Co
o
oncord
Boise St. Paul
Albany Boston
Provid
rovidence
Pierre Lansing
Madison Hartfor
rtford
o
Detroit N
New York
Chicago Philadelphia T Trenton
Cheyenne Harrisburg
Sacramento Carson City Des Moines
Salt Lake City Lincoln Columbus
u
Annapolis
San Francisco
o Indianapolis
l ash
ashington, D.C.
Denver Springfield
Topeka Richmond
St. Louis
is Charleston
C n
Je erson City Frankfort
Las Vegas
s
Raleigh
eigh
Nashville
Los Angeles Santa Fe
Memphis Columbia
Barrow
w Phoenix Atlanta
Little Rock
Prudhoe
Bay Oklahoma City
ahoma
Dallas Montgomery
Jackson
Fairbanks
Nome
Valdez Tallahassee
Anchorage
Baton
Bethel Austin Rouge
Ne
New Orleans
Kauai Houston
Honolulu
Oahu Maui
Miami
Hawaii
Success stories How to get involved n Establish contacts with several immigra-
During the recession, funds raised by There are a number of steps that agents tion attorneys experienced in EB-5 visas.
Regional Centers became an important source can take to further investigate opportunities Be able to provide clients with more than
of capital for projects across many industries. associated with EB-5 visas, including: one name to call. Experienced attorneys
Examples include: can guide your clients through the process
n Learn more about the program. A good
and provide a list of well-established
n The Philadelphia Regional Center helped place to start is the USCIS site, uscis.gov,
Regional Centers and contact names as
the Philadelphia Convention Center raise where you can follow through links to
possible investment opportunities.
$122 million of its total $700 million cost Working in the U.S./Permanent
through 244 EB-5 investors. Workers, and Employment-based n Familiarize yourself with Regional Center
n The Los Angeles Film Regional Center Immigration: Fifth Preference EB-5. success stories. Learn more about
invested $272 million from 545 There you will find extensive information successful EB-5 projects through their
EB-5 investors into Time Warner and on eligibility criteria, the Regional Center websites. Examples of completed and
Sony Studios. Pilot Program, the application process, shovel-in-the-ground projects include:
forms and the documentation required. canamenterprises.com
n The New York City Regional Center has
provided $125 million in EB-5 funding to Other sites to investigate include C
anam Enterprises raises and manages
the Brooklyn Navy Yard Expansion; $60 eb5immigration.com/articles for articles funds for the Pennsylvania, Philadelphia,
million for developing industrial space to covering important EB-5 issues, and Los Angeles and Hawaii Regional Centers.
house green industries, and $65 million to eb5info.com/newsletters for updates on eb5jaypeakresort.com
build Steiner Studios, a television and film EB-5 developments and information on firms Within the State of Vermont Regional
production company. that can help with the EB-5 process. Center, Jay Peak is a major ski resort
n Ask foreign clients about their visa status. development in various phases of
Thousands of jobs for U.S. workers have been
If their status is deterring them from development.
generated by these and other projects.
buying property, make them aware of the skycondos.com
EB-5 visa and the resources required for a Twin Development LLC Regional Center
capital investment. If the EB-5 is a good fit is developing a large mixed-use project
for their situation, direct them to qualified in Seattle.
legal and financial experts who can advise (continued on page 6)
them further.
Global Perspectives April 2011 ~ 5

6. 4THE INVESTOR’S VISA
Key Differences between Individual and Regional Center
EB-5 Visa Requirements
Individual EB-5 Regional Center EB-5
Investment $500,000 in TEA, $500,000 in TEA,
otherwise $1 million otherwise $1 million
Job Creation 10 direct new full-time jobs for 10 new full-time jobs directly or
U.S. workers indirectly in the community
Type of Venture New business; reorganized existing Regional Center project
business; expansion of existing business;
troubled business
Management Active management Limited partnership
(continued from page 5)
During the THE EB-5 VISA
recession, funds n Don’t forget to ask for referrals. If your
global clients are not a good fit for the
n If you are a commercial real estate agent,
ask your developer contacts if they are
raised by Regional EB-5 visa, ask them if they have friends aware of the program. They may be able
who might benefit from the program. to qualify for foreign investor funds under
Centers became Foreign retirees are especially good the Pilot Program.
an important candidates, as they tend to know others
with similar interests. Also, ask any
n If you are interested in becoming directly
involved in a Regional Center project,
source of capital newly-established contacts in immigration do your homework. Vet the project and
law to refer clients looking to buy homes in consult an attorney with EB-5 experience
for projects across your area. to advise you on USCIS requirements.
many industries. If there is a Regional Center project in your
area, you may also want to investigate other The EB-5 visa can attract buyers from around
the world. Awareness of the program is rising
opportunities to get involved, including:
and the number of applications for the visa is
n Introduce yourself to the developers
at an all-time high. Turn this into an opportu-
associated with the project. To the extent
nity to build your global business by learning
that EB-5 investors associated with the
more about the program and making the right
project may be interested in purchasing
contacts within the professional community.
real estate in your area, the developers
GP
may become an important source of
referrals. A current list of Immigrant
Investor Regional Centers, including
contact information, can be found at
uscis.gov.
6 ~ Global Perspectives April 2011

7. Anti-Money Laundering
UPDATE
With an influx of foreign buyers interested in living and investing in the United States, it is
essential that real estate professionals be informed about efforts to prevent illegal financing
activities, including specific steps that can be taken to avoid becoming an unwitting participant
to money laundering schemes.
The Financial Crime Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury,
collects and analyzes information about financial transactions in order to combat money
laundering, terrorist financiers, and other financial crimes. Important points to keep in mind
when working with buyers from out of the country interested in investing in U.S. real estate:
Currency transaction reports
The IRS requires each person engaged in a business or trade to report any cash transactions they
receive in excess of $10,000 from one buyer as a result of a single or related series of transactions.
This would include such things as cash payments received for earnest money deposits and
payments to contractors. The transaction must be reported to the IRS using Form 8300. The
information provided by Form 8300 provides valuable information to the IRS and FinCEN in their
efforts to combat money laundering.
@ Additional information from the IRS can be found in the online version of this article at
realtor.org/global/antimoneylaundering.
Specially Designated Nationals
The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury administers
and enforces economic and trade sanctions based on U.S. foreign policy and national security goals
against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those
engaged in activities related to the proliferation of weapons of mass destruction, and other threats
to the national security, foreign policy or economy of the United States.
As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned
or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups,
and entities, such as terrorists and narcotics traffickers designated under programs that are not
country-specific. Collectively, such individuals and companies are called Specially Designated
Nationals or SDNs. Their assets are blocked and U.S. persons are generally prohibited from dealing
with them.
@ Members can also access the list though realtor.org/global/antimoneylaundering.
Legislative and regulatory status and outlook
NAR continues its work with legislators and regulators to develop the best ways for real estate
professionals to become aware of how real estate is currently being used in illegal financing
schemes and continue to take steps to play their part in the global fight against money laundering
and terrorist financing.
GP
Global Perspectives April 2011 ~ 7

8. May 9-13, 2011
NAR Midyear Legislative Meetings Washington, D.C.
5 Reasons You Need to Be There
r
(Plus one you just can’t afford to miss!)
NAR Midyear Meetings are only a month away! The event is always rich in
networking and education opportunities for Global professionals – here are
the top 5 reasons you should be there (in no particular order): ...and the one you
1) International Local Council Forum – Roundtable format for AEs can’t afford to miss:
and volunteer leaders to help with globally themed programming
for associations.
Global Referral Profile Videotaping
The Global Referral Profile videotaping made its
2) International Forum – Subject matter experts will discuss
debut at the REALTORS® Conference & Expo last
immigration laws and what REALTORS® need to know when
year in New Orleans, and returns by popular
selling properties to foreign investors.
demand for the 2011 Midyear meetings. This is your
3) Embassy Visits – Exclusively for CIPS designees, you’ll have the chance to have a professional video of you promot-
opportunity to visit several embassies (specific embassies TBD). ing your business to the world. Tell global real estate
4) CIPS Breakfast – Be recognized for your achievement! New CIPS professionals all over the world who you are, where
designees are recognized and pinned at this breakfast networking you practice, what your specialties are, and why
event. Exclusively for CIPS designees – get your application in today they should send referral business to you. NAR
so you can be recognized! will post them on the NARGlobal YouTube
channel (youtube.com/user/NARGlobal),
5) International Networking Reception – Make new friends and visit
realestateconnections.tv, and will add them to your
with old ones over hors d’ouevres and cocktails at the International
Find a CIPS profile on realtor.org. Don’t miss out!
Networking Reception.
Of course there are many incentives to attend the meeting – learn about all of them at realtor.org/midyear.
800.874.6500 • www.REALTOR.org
430 North Michigan Avenue • Chicago, IL 60611-4087