Thread: FL-Builder Seeks Funding Offers Visas From Abroad

Builder seeks funding from abroad

Miami Herald
BY MONICA HATCHER
mhatcher@MiamiHerald.com

With almost no access to credit through traditional lending channels, Century Homebuilders is the latest developer to begin courting foreign nationals with green cards in a bid to raise capital for an unfinished project.

In a bid to raise $50 million to complete a project in Doral, Century Homebuilders, one of South Florida's largest home builders, said Tuesday it was launching an investor visa program that offers green cards to foreign nationals who invest in U.S. businesses.

The EB-5 investor visa program opens a pathway to residency and citizenship to foreign nationals and their families who invest $500,000 to $1 million in an approved investment program that creates jobs for at least 10 U.S. workers.

In March, Citizenship and Immigration Services included Miami-Dade and Monroe counties in a pilot program that makes the process smoother by allowing investors to satisfy the employment requirement indirectly. Typically, visa applicants must show that 10 jobs are created as a direct result of their business activities.

Century Homebuilders is banking on the lure of a visa to raise $500,000 from at least 100 foreign nationals. The funds will be used to finish developing the 350-acre site at its Century Grand community in Doral, creating jobs for 1,300 workers in the process.

The planned traditional neighborhood development envisions a city within a city -- 4,500 homes built around a town center and in close proximity to schools, parks, shops and a church. So far, buyers have put down deposits for 542 homes.

``I am not just selling visas here,'' said Sergio Pino, president and chief executive of Century Homebuilders, ``We have the real deal here. In the worst case scenario, this project will make a lot of money.''

Pino, a Miami-Dade developer for more than 20 years, said the company began exploring the idea of launching an investor visa program about six months ago, but shelved the plans thinking the credit markets would improve.

Since then, financing conditions have worsened, Pino said, with banks virtually cutting off credit to home builders because of the real estate downturn.

Lenders, including several national banks, that had partnered with the company in the past on more than 53 South Florida communities had either closed or stopped lending, leaving Pino with few options.

``Either I put a fence around this community and do nothing or I move forward with the options that are available, like the EB-5 program,'' Pino said.

Pino's plans are building on efforts of other local developers and entrepreneurs to attract foreign capital to the region by setting up investor programs that offer a visa.

Immigration lawyers David Hart and Eric Gould are facilitating a visa program for Miami developer Arva Jain, who is seeking to raise $12 million to build out 45,000 square feet of commercial space attached to the Marina Blue condominium, 888 Biscayne Blvd.

Marketing of $500,000 investment packages -- through foreign immigration agents in Venezuela, Colombia, Mexico, Taiwan, China, Russia -- begins at the end of the month.

Visa investment programs are also under way in Palm Beach County and Orlando.

Some immigration lawyers warn that foreign investors should closely vet the financial soundness of EB-5 programs before committing, citing a history of fraud and shoddy underwriting.

In a preliminary economic impact study, Pino said the development of Century Grand would create more than 1,300 jobs within six months of securing funding from investors as planned.

He also hopes foreign investment will provide a platform to raise further capital to finish the project.

So far, only the initial groundwork for the investor visa program had been laid. The project must still be approved by Citizenship and Immigration Services. The process takes about six months.

If the application fails to meet the requirements for the minimum investment of $500,000 under the EB-5 pilot program, Pino said he will still move forward with investments of $1 million or more.

http://www.miamiherald.com/business/story/1192138.html

This has been going on in Florida as long as I can remember, but this is the first organized effort by a private company I know of.

``I am not just selling visas here,'' said Sergio Pino, president and chief executive of Century Homebuilders, ``We have the real deal here. In the worst case scenario, this project will make a lot of money.''

Pino, a Miami-Dade developer for more than 20 years, said the company began exploring the idea of launching an investor visa program about six months ago, but shelved the plans thinking the credit markets would improve.

Since then, financing conditions have worsened, Pino said, with banks virtually cutting off credit to home builders because of the real estate downturn.

With so many homes in foreclosure, who will buy these homes? How does he figure the "project" will make "alot of money"? Buyer beware!