Short story first:
- Launched with $45,000.
- Formed an INC, bought and renovated the first house, then refinanced it under the company.
- Rolled gains into new projects.
- Now owns 4 properties valued at $600K+.
- Result: E-2 approval for an active construction/remodel (fix-and-flip) business.
Why this worked for E-2 (in plain English)
E-2 officers look for six things. This case checked every box:
- Treaty nationality: Investor holds a qualifying passport.
- Substantial, at-risk funds: $45,000 went into real business costs (tools, labor, materials, permits, marketing, insurance). Money was committed and exposed to risk.
- Real and operating: The company actually worked on properties—no “paper company.”
- More than marginal: Clear plan to support U.S. jobs and growth (contractors, vendors, assistants).
- Active role: Owner managed budgets, contractors, schedules, bids, and sales.
- Lawful source and path of funds: Clean bank records and receipts tied the money trail together.
Bottom line: Fix-and-flip can qualify when it’s a construction/remodel business, not passive holding.
How the structure was set up
- Form the INC and open a business bank account.
- Obtain licenses/permits (where required), insurance, and vendor accounts (materials, dumpsters, equipment).
- Acquire the first property under the company.
- Renovate using documented expenses: bids, invoices, checks, bank wires, receipts, photos.
- Refinance under the company to free capital for the next projects.
- Scale: repeat acquisitions, build a pipeline, retain crews, and create support roles.
Smart use of the initial $45,000 (example split)
- Acquisition costs & due diligence: inspection, appraisal, closing fees.
- Materials & labor: carpentry, paint, flooring, kitchens/baths, roofing, MEP work.
- Tools & equipment: purchase or rental with signed agreements.
- Permits & inspections: city/county fees.
- Insurance & compliance: general liability, workers’ comp as needed.
- Marketing & sales: staging, listing photos, signage, basic website.
- Operating cushion: utilities, dumpsters, fuel, contingencies.
(Your numbers will differ by market. The key is clear documentation.)
Refinancing the first project—what to show
- The company completed a remodel and refinanced to unlock capital.
- Keep a clean trail: appraisal, HUD/ALTA statements, loan terms, and where proceeds went next.
- Explain in your plan how refinance supports job creation, inventory flow, and sustainable growth.
- Make clear that your original cash investment was at risk and used for real operations.
Evidence that convinces officers
- Company setup: articles, EIN, bank statements, merchant account.
- Money trail: wire receipts, invoices, checks, and ledgers that connect every dollar.
- Operations: permits, contractor agreements/1099s, insurance certificates, vendor accounts.
- Projects: purchase deeds, scopes of work, before/after photos, appraisals, closings.
- People: org chart and job plan (project manager, field crew, admin/assistant).
- 5-year financials: revenue per flip, gross margin assumptions, operating costs, and hiring timeline.
- Market logic: target neighborhoods, price bands, expected hold times, risk controls.
Growth snapshot from this case
- Portfolio: 4 properties, $600K+ combined value.
- Cycle: acquire → renovate → refinance or sell → reinvest.
- Jobs: steady contractor work plus part-time admin; plan to add full-time roles as volume grows.
- Pipeline: repeatable model with documented costs, timelines, and exit strategies.
Common mistakes to avoid
- Treating it like passive renting/holding.
- Weak money trail (missing invoices and receipts).
- No permits/insurance where required.
- Overstating profits without comps or appraisals.
- Thin hiring plan (no path beyond the owner doing everything forever).
Quick FAQs
Is fix-and-flip allowed for E-2?
Yes—when it’s an active construction/remodel business with real operations and jobs, not a passive investment.
Is $45,000 enough?
It can be, if your budget is tight, funds are at risk, and you prove a real operating plan. Many investors add capital as they scale.
Can I use refinance proceeds?
Yes, if it’s part of a real business cycle. Show the full paper trail and how proceeds fund more projects and jobs.
Do I need employees on day one?
Not always, but you need a credible plan to support U.S. workers as revenue grows.
What matters most in the submission?
Clear documentation, a repeatable model, and proof that the business is more than marginal.