EB5

In a recent article by Fortune, EB-5 funds are discussed and a world of dark and secretive capital alternatives is revealed. EB-5 is an employment based visa program that essentially sells citizenship for investment in the US. $500,000 in an investment creating 10 full-time jobs in a qualifying investment and area will get you citizenship in the US. The article discusses that EB-5 funds and the industry for obtaining these funds is largely unregulated and amatuers are chasing these dollars. Of specific interest, are that these funds have been used in real estate developments. Many questions of ethics and national pride stem out. From the article:

From the law’s inception in 1990, selling potential citizenship to the rich struck many as a corruption of American ideals. “Have we no self-respect as a nation?” asked Texas congressman John Bryant on the House floor that year. “Are we so broke we have to sell our birthright?”

Considering real estate market and appraisal fundamentals, is there a necessary or even calculatable adjustment for real estate assets funded with EB-5 capital? It is possible that participants invest their money for the right to obtain citizenship, not so much to earn an investment return. Something to consider....

For your further reading please read the sourced Fortune article and look forward to works produced by Texas A&M's Real Estate Center regarding this subject.

Source:
http://fortune.com/2014/07/24/immigration-eb-5-visa-for-sale/
http://recenter.tamu.edu/