Business & Real Estate Opportunities to Partner with Foreign Companies & Investors. Presented by:

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1 Business & Real Estate Opportunities to Partner with Foreign Companies & Investors Presented by:

2 About Our Firm Garmo & Garmo, LLP Our firm has been located in Downtown El Cajon for over 20 years. Our office staff currently consists of six full time attorneys and two full time support staff members. Our team of specialists consistently delivers outstanding results combining creative ideas with our vast experience. We can help you build a sustainable, meaningful relationship with your clients by engaging them with your brand using social media. Our staff is fluent in English, Spanish, Chaldean and Arabic. 2

3 Who We Are Partner Partner Freddy Garmo Robert Garmo 25 years of experience Specializes in Business Law, Real Estate Law, and Estate Planning 27 years of experience Licensed in California and Michigan Specializes in Immigration Law, Real Estate Law, and Business Transactions/ Business Opportunities 3

4 Who will benefit from this presentation? Business & Investment Immigration, A collaborative process Developers - Foreign money is pouring in Entrepreneurs & syndicators - Put ideas into action with foreign money Attorneys - Immigration / corporate / Business Business Owners - Sell your business / secure partnerships Real Estate Owners - Sell / lease property to rich foreign investors Brokers & Real Estate Agents - Foreigners are looking to buy business & real estate Accountants - Required for most of the applications discussed Bankers - Needed to open accounts / Transfer money Title & Escrow companies - Needed with selling business or real estate Insurance Brokers - Needed for businesses & real estate Financial Planners - Foreign nationals come unattached and need planning Estate Planning/Asset Protection- Foreign nationals are trying to bring their money to US 4

5 Investment Immigration: A Collaborative Process Applicant consults with a network of professionals Bankers New accounts Loans Real Estate or Business Agent Locate potential business/opportunity Escrow/Title Business Attorneys Entity selection Certified Public Accountants (CPA) Business plan Projections Tax implications Financial Planners Insurance Agents Estate Planning/Asset Protection Foreign clients are usually detached from professional representation Buy/Sell Agreements Review legal documents 5

6 USA A beacon of light for the World Immigration into the U.S. by decade ( ) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000, s 1830 s 1840 s 1850 s 1860 s 1870 s 1880 s 1890 s 1900 s 1910 s 1920 s 1930 s 1940 s 1950 s 1960 s 1970 s 1980 s 1990 s 2000 s 6

7 Government Regulations that shaped our country 01 Immigration Act of 1924 Set annual immigrant quotas for each country Based on surnames and not the census figures, 82% of all immigrants allowed in the country came from western and northern Europe, 16% from southern and eastern Europe, 2% from the rest of the world. 02 Hart-Celler Act of 1965 Abolished national origins quotas, establishing separate ceilings for the eastern (170,000) and western (120,000) hemispheres (combined in 1978). Categories of preference based on family ties, critical skills, artistic excellence, and refugee status. 03 Immigration Act of 1990 Limited unskilled workers to 10,000/year; skilled labor requirements and immediate family reunification major goals. Continued to promote nuclear family model. Foreign-born in US was 7%. 7

8 How Do People Come To America? Non-Immigrant Visas Immigrant Visas Other Immigration Temporary Intent to return home Visitor: B-1 or B-2 Student: F-1 Investor E-1 or E-2 Employment: H-1B Intra Company Transferee: L-1 Several Others Permanent: Green Card Family Based Visas Employment: Green Card PERM: EB-3 (Labor Certification) New Office: L-1A Investor: EB-5 Asylum Refugee Religious workers Athletes & celebrities 8

9 Family Based Immigration Visa Bulletin Table Long backlogs leading to merit based immigration system -Visa Bulletin 02/2019 Family-Sponsored All Chargeability Areas Except Those Listed CHINA-mainland born INDIA MEXICO PHILIPPINES F1 08APR12 08APR12 08APR12 22SEP99 15MAR08 F2A 01DEC17 01DEC17 01DEC17 01DEC17 01DEC17 F2B 22JUN14 22JUN14 22JUN14 08OCT97 15JAN08 F3 01FEB07 01FEB07 01FEB07 08JUN00 01AUG97 F4 15JUN06 15JUN06 01FEB05 01NOV98 08DEC97 First: (F1) Unmarried Sons and Daughters of U.S. Citizens Second: Spouses and Children, and Unmarried Sons and Daughters of Permanent Residents A. (F2A) Spouses and Children of Permanent Residents; B. (F2B) Unmarried Sons and Daughters (21 years of age or older) of Permanent Residents Third: (F3) Married Sons and Daughters of U.S. Citizens Fourth: (F4) Brothers and Sisters of Adult U.S. Citizens 9

10 Alternative Means of Immigration E-1 or E-2 Temporary Treaty Trader or Investor L-1 Intra-company transferee EB-3 PERM- Labor Certification EB-5 Million Dollar Investor

11 Highlights of the E Visa Applicant is interested in engaging in qualified trade or investment. Basically, buy an existing business or open a new business of goods, services, or international trade. Applicant must be from a treaty country. Investment must be substantial and not marginal. There is no set investment amount, but it has to support more than just the investor s family. Investment must be active and not passive. Buying a home or apartment building will not suffice; however, managing the apartment building would work. Applicant can be co-investor with an American firm so long as foreign investor owns 50% or more. E visas are non-immigrant visas usually good for 2 to 5 years. Can be renewed. Process is fast usually in 30 to 60 days. Family members of investors can come. Foreign employees can come if they are essential to successful operations. 11

12 Highlights of the L Visa Enables a U.S. employer to transfer an executive or manager from an affiliated foreign offices to one of its offices in the U.S. Enables a foreign company which does not have an affiliated U.S. office to send an executive or manager to the United States with the purpose of establishing one. Employee must have been working for a qualifying organization abroad for one continuous year within the three years immediately preceding his or her admission to the United States; and Be seeking to enter the United States to provide service in an executive or managerial capacity for a branch of the same employer or one of its qualifying organizations. Foreign company must own at least 50% of the U.S. company L visas are non-immigrant visas usually valid for initial period one year but can be renewed. Process is fast usually in 30 to 60 days. L-1 visa is the only visa that starts as non-immigrant and can jump to immigrant. 12

13 Employment-Based Immigration Visa Bulletin Table -Visa Bulletin 02/2019 Employment- Based All Chargeability Areas Except Those Listed CHINA - mainland born EL SALVADOR GUATEMALA HONDURAS INDIA MEXICO PHILIPPINES 1st 01JUN18 01OCT17 01JUN18 01OCT17 01JUN18 01JUN18 2nd C 01NOV15 C 22MAY09 C C 3rd C 01JAN16 C 01APR10 C 01OCT17 Other Workers C 01JUN08 C 01APR10 C 01OCT17 4th C C 01MAR16 C C C Certain Religious Workers C C 01MAY16 C C C 5 th Non Regional Center C 01OCT14 C C C C 5 TH Regional Center 01OCT14 C C C C First: Persons with extraordinary abilities, Outstanding professors & researchers & Multinational executives (world renowned) Second: Persons with advanced degrees & exceptional ability. Third: Skilled Workers, Professionals, and Other Workers (labor certificate from Department of Labor) Fourth: Broadcasters, religious workers, Iraqi & Afghan Interpreters who provided valuable service to the U.S. 13 government of at least one year. Fifth: Employment Creation (labor certificate from Department of Labor)

14 Highlights of the EB-3 PERM Permanent Labor Certification EB-3 is Employment Based 3 rd preference. A U.S. employer may petition for a foreign worker to receive a Green Card if the employer could not find a suitable employee in the U.S. to perform the job. The employer must pay the foreign worker the prevailing wage for the occupation, must recruit U.S. workers first, and must receive department of labor certification before petitioning for a prospective employee. This is not a temporary visa but a green card. EB-3 is not only for the rich and educated. All occupations are acceptable such as landscaping; restaurant workers; farm workers, etc. Entire process can happen in about 12 to 24 months. 14

15 Highlights of the EB-5 Process Created in 1990 to bring foreign investors to the U.S. Provides investor, spouse and all children under age 21 a conditional green card. Requires a $1 million investment and creation/saving of 10 jobs. Can be reduced to $500,000 if certain requirements are met. Helps U.S. developers raise capital. The investment must be at risk. The SEC does not like loan structures. Takes about 24 to 36 months to process. Parents and all unmarried children under 21 can enter on one EB-5 approval. 15

16 Economic Impact of EB-5 From 2010 to 2015, Billion Dollars was invested and 276,210 jobs were created/supported.

17 Three Ways to Invest 1. Create a new business 2. Take over a troubled business 3. Invest in an existing Regional Center

18 1. Creating a New Business 1. Build a new hotel, office building, gas station, car wash, supermarket, etc. a. Minimum of $1 million dollar investment b. Creation of 10 new jobs 2. Lease an existing vacant building and open up a new business a. Minimum of $1 million dollar investment b. Creation of 10 new jobs 3. Pool multiple investor money to create a new business a. Each investor must invest $1 million dollars; and b. Each investor must create 10 new jobs

19 2. Troubled Business To qualify under this investment method, you must: 1. Invest in a business that has existed for at least two years; 2. Invest in a business that has incurred a net loss, based on generally accepted accounting principles, for the month period before you file the I-526 Form; 3. The loss of the 12 to 24 month period must be at least equal to 20 percent of the business net worth before the loss; 4. Maintain the number of jobs at no less than the pre-investment level for a period of at least two years; 5. Be involved in the day-to-day management of the troubled business or directly manage it through formulating business policy. Ex. Corporate officer or board member; 6. Meet the same requirements of the new commercial enterprise investment $1 million dollar investment ($500,000 for a targeted employment area).

20 3. Invest in a Regional Center A Regional Center is defined as any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment. As of May 1, 2018, there were 901 Regional Centers approved in the U.S. New Hotels Malls Hospitals Energy Companies Office Buildings

21 Regional Center - Targeted Employment Area (TEA) If the investment is in a business or Regional Center located in normal unemployment areas the minimum investment is $1,000,000 and the creation of 10 jobs. If the investment is in a business or Regional Center located in Targeted Employment Area TEA, the minimum investment is $500,000 and the creation of 10 jobs. TEA = unemployment rate is 1.5 times the national average. Designated by the governor of that state TEA is calculated by applying contiguous census tracts.

22 Due Diligence Source of Funds Investor must prove that his money is clean through bank accounts, wire transfers, business/real estate ownership, etc. Office of Foreign Asset Control (OFAC) Investors from countries such as Iran, Iraq, Syria may require a clearance letter from OFAC saying that their money was not obtained through illegal funds.

23 Thank You For Coming! Questions? Garmo & Garmo, LLP 124 W. Main St., Ste. 200 El Cajon, CA Phone: (619) Fax: (619) Web: