Miami, often dubbed as “the Capital of Latin America,” has historically been a favored destination for Latin American investors looking for temporary residence or business opportunities in the United States.
Also known as the “Magic City,” a new report shows that a large population of billionaires already call Miami home, with numbers of over 35,000 individuals, similar to those of Dubai, Frankfurt, Taipei, and Dallas.
It stands to reason that this city and home state of Florida also attract Latin investors seeking to pursue the “American Dream” and establish a permanent presence in the U.S.
Consulted by EB5Investors.com, speakers at the upcoming Global Mobility & Investment Summit in Miami on August 28-29 explain that the city and state attract Latin American investors considering the EB-5 investor visa for residential or business purposes.
They emphasize various factors that make Miami and Florida attractive for Latin American investors, such as the business environment, connectivity, investment opportunities, shared cultural values, and support infrastructure.
Miami as a strategic gateway for Latin American investment in the U.S.
Thanks to its proximity and connectivity, Miami’s strategic location serves as a gateway for Latin American investments in the U.S. The city’s international airport, seaport, and robust transportation infrastructure facilitate business travel and trade between the U.S. and the rest of the world.
Andrea Devis Focke, director of Investor Relations for Latin America & Brazil for EB5 Capital, notes that this ease of travel is strategic for investors who wish to keep connected to their home countries. “Miami is a convenient location for Latin American investors who seek to maintain close ties with their home countries while building their business in the United States.”
PortMiami’s logistical advantages as one of the largest cargo ports in the U.S., “simplifies supply chain management for businesses engaged in import-export activities,” she adds.
Miami is also a welcoming environment for Latin American expatriates, providing cultural familiarity and language connections that ease business interactions and networking. “The area’s cultural and linguistic affinity makes it easier for Latin Americans, whose native language isn’t English, to manage operations and connect with local consumers,” Devis Focke says.
This affinity also expands to banking services, facilitating access to capital, financial services, and cross-border transactions catering to Latin American investments’ financial and business requirements.
“Many individuals who decide to open a business in Miami already have either a direct or secondary network that they can access through existing relationships in their home countries. An existing network in Miami provides a soft-landing to Latin American investors looking to open a business in Miami,” she adds.
Latin American investors can tap on Miami’s available EB-5 infrastructure
Regarding EB-5 investment opportunities, the Miami and Floridian real estate market is a popular choice for EB-5 investors due to its diverse property options that meet the program’s requirements.
Real estate projects are the most common investment for obtaining an EB-5 visa. The tourism and hospitality sectors have influenced the local offerings. Because of its size, the market can create jobs for the local economy, which is an essential requirement for EB-5 visa eligibility. It hosts available infrastructure to support EB-5 requirements, as it’s home to several USCIS-designated EB-5 regional centers that sponsor investment projects eligible for the EB-5 visa program.
Additionally, Florida’s lack of individual income tax appeals to high-net-worth individuals, offering significant cost savings compared to states like California or New York.
Latin American investors can capitalize on these opportunities through EB-5 investment projects in the state.
However, while Miami and Florida may initially attract Latin American investors to EB-5 projects, Kraig A. Schwigen, VP of Strategic Development at American Lending Center, a designated regional center, emphasizes the importance of understanding investors’ needs beyond location.
“In many past projects’ developers failed to think in the manner that an EB-5 investor approaches prospective investment opportunities. At its ‘core’ EB-5 is pretty simple. Prospective EB-5 investors are seeking green cards, a return on capital and some return on investment. For developers this means that any project they undertake needs to be completed as this, alone, can satisfy the job creation needs of investors,” he says.
Schwigen concludes that the “return on investment” is a critical topic for any EB-5 investor. “What many developers fail to understand is the true significance in the ‘interest’ payments that are made on the EB-5 funds. These payments are seen by most EB-5 investors as a barometer of how the project is performing. EB-5 investors are going to worry throughout the entire immigration and investment process however there are small steps that can be taken to help reduce the worries all EB-5 investors experience. Establishing routine communications that confirm projections in the business plan are being met and construction progress and financial viability are occurring as projected will pay huge rewards.”
If you are an investor, who wants to join us for free at our EB-5 expo in Miami on Aug. 28-29, please reach out to info@eb5investors.com.
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