eb5exclusive

By Renata Castro

Fred Burgess, Joe Sloboda and Renata Castro have returned from a very successful round of meetings with prospective EB-5 investors and decision makers held in São Paulo, Brazil and Buenos Aires, Argentina.

The Brazilian economy is the world’s 6^th largest by nominal GDP and the 7^th largest in purchasing power parity, being one of the world’s fastest growing major economies.  According to an article published in the Brazilian newspaper Estadão, 19 new millionaires are “created” every day. The explosive growth of commerce, credit, the appreciation of Brazilian Real Estate and the discovery of massive oil reservoirs in the Latin American mammoth country are among a few of the factors driving such impressive numbers.

Although a new market for EB-5, Brazilian investors are receptive to the idea of investing in US-based projects in exchange for their US residency.  Historically, Brazilians pursued US Residency either through L-1 or H-1B visas, which has proven more and more difficult with the recession that decimated the US job market, leaving executives and high net-worth individuals with EB-5 as a safer and faster pathway to their green cards, and, subsequently, US Citizenship.

Aside from the challenges in adjusting with L-1 and H-1B visas, Brazilians have rushed to purchase Real Estate in the US, and becoming US residents seems to be the next natural step.  A Brazilian Native from Rio de Janeiro, Renata Castro, Project Manager at Exclusive Visas, also attributes the increase in demand for EB-5 petitions “due to the unsafe social environment in Brazil, wealthy individuals are attracted to the security of uprooting their families to the US. Kidnapping, including flash abductions designed by burglars to have individuals “tour” ATM machines and withdraw as much money as possible, have plagued the country and seem to be more frequent and more violent every day.” Renata also attributes the real estate bubble in the country to more access to capital. “Those who could not afford the minimum US$ 500,000.00 are now drawn to the EB-5 investment as a long term project, allowing them to expand their businesses in the US, without going through the uncertainty and risk of other visa options.”

Exclusive Visas will be holding seminars in Brazil in August, with dates to be finalized by the end of July 2012.