The NAICS code is an important identifier for businesses, especially for real estate companies looking to raise EB-5 funding. NAICS stands for North American Industry Classification System and is used by the US government to classify businesses by industry. Having the right NAICS code is crucial when applying for an EB-5 visa, as it determines the job creation requirements. This article will provide an overview of common NAICS codes used in real estate along with tips for selecting the right code.
531110 – Lessors of Residential Buildings and Dwellings
This NAICS code covers companies that rent or lease residential properties such as apartments, single-family homes, townhomes etc. It includes owners of apartment buildings, manufactured homes, single-family homes etc. This code typically applies to traditional real estate investment firms focused on acquiring, managing and generating rental income from residential properties. When applying for EB-5 funding, residential lessors need to create at least 4.4 jobs per investor.
531120 – Lessors of Nonresidential Buildings
Firms classified under this NAICS code own and lease out nonresidential buildings like offices, warehouses, mini storage facilities etc. It covers REITs and other companies focused on commercial real estate. The job creation requirement is 3.8 jobs per EB-5 investor for nonresidential lessors. This is lower than residential lessors as commercial properties tend to have higher values and investment amounts.
531311 – Residential Property Managers
This classification is for firms primarily engaged in managing residential real estate for others. Their services include collecting rents, overseeing maintenance, tenant services etc. The NAICS code applies to residential property management companies and divisions of larger real estate firms. The EB-5 job creation threshold is 6.0 per investor.
531312 – Nonresidential Property Managers
Companies under this code provide management services for commercial, industrial and other nonresidential properties. This includes REITs with property management divisions and third-party property management firms focused on office buildings, retail centers etc. The minimum EB-5 job creation requirement is 4.6 per investor.
Choosing the Right NAICS Code
When preparing an EB-5 application, it’s important to select the NAICS code that best fits your real estate business activities. Consult with your immigration attorney to determine the appropriate code. Also keep in mind that some projects like mixed-use developments may need to use a combination of codes. Properly identifying your NAICS code will help demonstrate to USCIS that your project can realistically achieve the required job creation.
NAICS codes are an important part of the EB-5 application process for real estate projects. Major codes include lessors of residential and nonresidential buildings, as well as residential and nonresidential property managers. Be sure to select the code that aligns with your specific project plans and activities to prove job creation and secure EB-5 visa approval.