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Can a property mortgage qualify as an EB-5 investment?

I invested $300,000 as cash down and got a $700,000 mortgage from the bank. Is this a valid investment for EB5 Category? What if I buy a $1,000,000 hotel business with the property?

Answers

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    In order to apply under the EB-5 program, you need to invest in a commercial enterprise that will generate 10 full time jobs in 2 years from obtaining the Lawful Permanent Residency. Also, you need to demonstrate that the monies used for the investment came from your earnings or a gift. I would need more information in order to advise you properly. Please do not hesitate to contact me.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Generally, if the mortgage is secured by the assets of the target investment, it will not qualify under EB-5 program. More information is necessary to analyze your specific situation. If you purchase a hotel and create at least 10 full-time permanent jobs and otherwise meet the EB-5 program requirements, this may qualify under direct EB-5 investment. You should consult an EB-5 immigration attorney to review your specific situation. Do not hesitate to contact our office, should you have further questions.

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    Daqin Zhang

    Immigration Attorney
    Answered on

    The answer is ''NO.'' For more information about EB5, please visit our website. If you are in the Los Angeles area, we can schedule a meeting to discuss your immigration plan.

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    Lei Jiang

    Immigration Attorney
    Answered on

    What is the collateral for this mortgage? It cannot be EB-5 project. Generally speaking, buy a $1,000,000 hotel business might not satisfy the job creation requirement.

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    Alexander Lebedinski

    Immigration Attorney
    Answered on

    Assuming that the mortgage will be secured by the property you are purchasing, this will not be a qualified investment for B-5 purposes. Any loan or mortgage agreement, promissory note, security agreement, or other borrowing may not be secured by the assets of the new commercial enterprise.

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    Clem Turner

    Securities Attorney
    Answered on

    This is essentially a "source of funds" question. So long as the mortgage is recourse to you (and not just the property), it should count as a valid source of your funds and those funds would be "at-risk", although this is a very tricky area and you should retain immigration counsel to make sure you qualify. The larger issue is that buying an existing hotel for $1,000,000 will not "create" any jobs. Presumably the same number of jobs will exist after you buy the hotel than before. Therefore, the investment you describe will not work with respect to the EB-5 Program.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The equity portion qualifies as part of your investment funds.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Obtaining loan funds and classifying theses funds as your personal investment is acceptable and EB-5 compliant. However, if this is a direct investment you cannot use borrowed funds against the collateral assets of the US business you are supposed to be investing in.

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    Michael A Harris

    Immigration Attorney
    Answered on

    What is securing the mortgage? The investment property? If so, you cannot use a loan that is secured by the assets of the EB-5 investment. More information is needed and you should consult with an immigration attorney to go over all of the facts in order to structure a proper EB-5 investment.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    If you invest in real estate, it is not considered "at risk" and therefore it is not a valid EB5 investment. If you invest in the business, the amount to qualify for the investment of $1Million (or $500,000.00 if a TEA) had to be in the business not the value of the land. We are available if you need further assistance or have further questions.

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    Karen Weinstock

    Immigration Attorney
    Answered on

    No, the mortgage would not qualify.

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    Neville M Leslie

    Immigration Attorney
    Answered on

    No. You need liquid funds.

  • Avatar

    Philip H Teplen

    Immigration Attorney
    Answered on

    The numbers clearly are $1,000,000 but I truly need to analyze the actual transaction. I will be happy to be of help.

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