Can EB-5 investors fund residential development? - EB5Investors.com

Can EB-5 investors fund residential development?

Can EB5 investors be used to assist in the funding of residential real estate infrastructure improvements for the streets, sewers, roads, etc.

Answers

Clem Turner

Clem Turner

Securities Attorneys
Answered on

There have been many successful EB-5 projects that have funded infrastructure. In certain past cases, funding the infrastructure portion of a project has allowed the EB-5 investors to claim credit for all of the job creation associated with the project. You would need to consult with an EB-5 specialist to determine if your project qualifies. In general, EB-5 investors can get job creation credit for the induced and indirect jobs resulting from their project, in addition to direct jobs. This could provide some additional funding for residential projects that can be very helpful to developers.

Ed Beshara

Ed Beshara

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There first needs to be an analysis of the EB-5 project and timelines.

Daniel A Zeft

Daniel A Zeft

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In general, the answer is yes. However, the viability of a particular EB-5 project depends on satisfying specific issues concerning legal requirements and job creation.

Taher Kameli

Taher Kameli

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It all depends on the job creation model.

Julia Roussinova

Julia Roussinova

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Yes as long as the EB-5 program requirements are otherwise met. Please do not hesitate to contact me should you have any further questions.

Lei Jiang

Lei Jiang

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Yes. Some EB5 projects are doing that.

Roberto Ortiz

Roberto Ortiz

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You can use EB-5 investors for this type of project as long as it will create 10 full time jobs per investors. Also, you need to either create a Regional Center or join an already existing Regional Center. If you have any questions, please do not hesitate to contact me.

Jor Law

Jor Law

RC Creators
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It''s possible, but the trick is to ensure that there are adequate job counts for EB-5 purposes.

Jinhee Wilde

Jinhee Wilde

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EB-5 investment project could be any kind of project. Please note, however, that business entity must create jobs. Showing how you created the requisite amount of jobs for each investment is the key to preparing and documenting the business side of the EB-5 application (I-526 and I-829).

Margo Chernysheva

Margo Chernysheva

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One of the conditions for EB5 visa is creation of US permanent full-time positions. It is not easy to show that construction jobs are permanent positions. Hence, you would need to hire a very experienced attorney to look at the jobs created through this investments and see if EB5 investor can receive visa through investing in your company.

Philip H Teplen

Philip H Teplen

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Absolutely yes, EB-5 programs can be utilized to do realty and civil engineering projects.

Igor Serbinin

Igor Serbinin

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Yes, it can as long as roughly it is not a loan to the developer.

Larry J Behar, Esq

Larry J Behar, Esq

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The central core of the EB five program is US job creation. When using a residential project, a commercial component which will include new permanent US jobs will need to be included in the economic and business plans.

Steven Anapoell

Steven Anapoell

Securities Attorneys
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Yes. The issue boils down to deal structure and job count.

Mona Shah

Mona Shah

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Yes, as long as the EB5 regulations have been fulfilled.

Shahzad Q Qadri

Shahzad Q Qadri

RC Creators
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Yes, there are no restrictions as to the kind of project, it can be residential, and or infrastructure . The key is that it has to create jobs, additionally if we are going to rely upon construction it has to last 24 months.

Boyd Campbell

Boyd Campbell

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Yes, but residential development does not create lasting new jobs. Some multi-use projects might work where EB-5 is a piece, such as a hotel or commercial shopping center development located nearby.

Jeffrey E Campion

Jeffrey E Campion

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The simple answer is "yes." This would normally be in the EB5 regional center context.

Toni L Castel

Toni L Castel

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There is no technical restriction on the type of business that an EB-5 project can engage in, however, it is required that for each EB-5 investor, 10 direct or indirect jobs (depending on whether the project is a regional center or not) must be created. This creates the practical restriction on the kind of business that an EB-5 project can invest in. Some kinds of businesses simply do not generate enough jobs per investment of $500,000 or $1,000,000. Therefore, the question to bear in mind when choosing the business in which the EB-5 project will engage is whether the appropriate number of jobs can be created.

Daniel B Lundy

Daniel B Lundy

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Possibly, yes, but it depends on the size of the project and the number of jobs created. Residential construction has limited job creation potential for EB-5 because you can only (sometimes, and usually only through a regional center) count construction jobs.

Emre Ozgu

Emre Ozgu

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The issue with these projects is whether or not the requisite jobs would be created for all of the investors. Typically with real estatement development that lacks a commercial component, the jobs go away after construction has been completed.

Private: Samuel Arthur Sue

Private: Samuel Arthur Sue

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Real estate development is the main focus of Regional Centers that use funds pooled from foreign investors. If a foreigner is meeting the requirements as an individual, it is difficult to meet the requirements with a real estate development project. The individual investor must show 10 employees - that is employees to his company and not use of construction contractors, etc. If you are looking for a passive investment, work with a Regional Center and you can get approval even though you have no employees working for your company directly.

Jennifer Parser

Jennifer Parser

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Yes to both questions, as long as the requisite 10 jobs per investor are created and exist two years later when the conditionality of the green card approval is finally applied for to be removed.

Susan Pilcher

Susan Pilcher

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Residential development projects are suitable, so long as the investment is made into a commercial, profit-generating enterprise that will create jobs. Some residential real estate investments result in more passive investment activity that will not satisfy the government''s interest in stimulating commercial development, so not every residential real estate investment project will qualify.

Kate Kalmykov

Kate Kalmykov

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Yes, EB-5 investors are eligible to fund residential development.

Stephen Berman

Stephen Berman

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If the new commercial enterprise will employ the necessary number of people, this should be possible to do as an EB5.

Neville M Leslie

Neville M Leslie

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Yes, EB-5 investors can fun residential development.

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