Changing Lanes from E-2 to EB-5 with Kamran Kirmani of NuRide – Episode 42
Changing Lanes from E-2 to EB-5 with Kamran Kirmani of NuRide
Mona, Mark and Rebecca are joined by Kamran Kirmani of NuRide Transportation Group to discuss how an investor can transition from an E-2 visa to an EB-5. They address the fundamentals of the E-2 and its advantages, using NuRide as the case study of a successful business model that fulfills all the criteria for both programs.
With the wait for an EB-5 clocking in at 18 months, foreign investors looking for a faster way to get into business in the US should consider the E-2 visa program. Partnering with a management company is one advantageous way to capitalize on this option, making use of their expertise to get started right away. Then if you want to pursue a permanent residency in the US, you can expand the enterprise and transition to an EB-5.
Kamran Kirmani of NuRide Transportation Group lends the EB-5 Investment Voice audience his expertise today as he joins Mark, Mona and Rebecca to discuss how his management company facilitates the transition from E-2 to EB-5. Kamran has been in the automotive and transportation industry since 1999, and NuRide Transportation, a successful young company in growing mode, is one of the only projects with both E-2 and EB-5 offerings. Today he shares the benefits of starting with an E-2, why the transportation industry is ideal for fulfilling the requirements of both programs, and the value of partnering with a management company like NuRide. Listen in to learn the nuts and bolts of the E-2 visa and how it can function as a stepping-stone to the EB-5.
Introduction to the E-2 Visa
- The E-2 visa is not a green card. It is a temporary work-related Visa that is good for as long as your business is open. Among its limitations are the fact that children are only included if under the age of 21, and the visa only applies to individuals from treaty countries.
- The chief advantage of the E-2 is speed. Obtaining an E-2 can take as little as three weeks.
- Another key benefit of the E-2 involves taxes. E-2 investors are only taxed on what they make in the US; they are not taxed on worldwide income.
- The E-2 is ideal for people who don’t want to live permanently in the US, but do want business access. Currently, China and Britain are the principal countries taking advantage of the E-2 visa.
- Unlike the EB-5 green card, which requires an investment of at least $500,000, the E-2 allows you to invest as much or as little as you want. The catch is that the business must be viable. USCIS often denies E-2 applications on the grounds of marginality.
NuRide Transportation as an Exemplar Project
- Transportation is a model industry for E-2 and EB-5 because it is historically viable and recession-proof. Additionally, the ROI of transportation ventures is higher than that of other businesses (e.g.: fast food franchises).
- NuRide is currently based in New York, with the intention to grow nationally and internationally. However, the platform allows for its investors to be located anywhere in the world, managing their assets via the use of technology.
Why Starting with an E-2 Makes Sense
- The current waiting period for the EB-5 is 18 months, with applicants from mainland China enduring a much longer wait. The E-2 is much more expeditious.
- The E-2 visa allows the investor to ‘test the waters,’ giving them an opportunity to decide whether or not they want to live in the US long-term.
- Starting with an E-2 gives the investor options:
- An investor can maintain the E-2 indefinitely
- Pursue an EB-5 (even with another Regional Center) while operating E-2 business
- Expand investment into the E-2 business to fulfill the requirements of the EB-5
- Partnering with a management company is allowed in the E-2 program. Unlike the L-1 visa program, the E-2 investor doesn’t have to be an expert in their chosen industry.
How the NuRide Model Facilitates a Transition from E-2 to EB-5
- NuRide allows E-2 visa holders who want to become permanent residents to transition within the same project. A fast food franchise such as Papa John’s would require investors to start another project or expand to several franchises to qualify for the EB-5.
- Infrastructure projects like NuRide solve the job creation issue associated with transitioning from E-2 to EB-5, whereas food franchises have more difficulty fulfilling the requirement for ten full-time permanent jobs – and remaining viable. The NuRide model allows the investor to keep things small or continue to grow.
- NuRide has extensive experience with the EB-5 program, and the company has scaled down and positioned itself to accommodate the E-2 investor as well. Because the E-2 requires investors to own 50% or more of the company, NuRide provides each individual investor with 100% ownership of her separate portfolio.
The Value of Partnering with a Management Company
- A management company provides the expertise that allows investors to get going from day one. NuRide, for example, assists investors with the process of buying cars, making repairs, and complying with the law.
- Because compliance is such a complex business, it makes sense to enlist the help of a management company. This saves the investor time and money and ensures that things are done properly from the beginning.
- As managing partner, NuRide offers investors the benefits of owning a large fleet. This includes lower insurance rates, discounted cars, and accessibility to clients.