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How can I use Chinese real estate as collateral to a U.S. bank for my EB-5 investment?

I am a Chinese citizen and I own real estate in China. Can I get a loan from a U.S. bank by offering my Chinese real estate for funding in the EB-5 process? What documents do I need to prove my source of funds?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It is unlikely that a U.S. bank could foreclose on property located in China. For that reason, the USCIS probably would not accept such a loan for EB-5 purposes. You could get a bank loan from China and then find a way to transfer the funds to the United States. You would need the loan agreement, the property appraisal, evidence of lawfully-obtained funds when you purchased the property in the first place, and bank statements showing receipt of the loan proceeds.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Generally, you would need to show lawful acquisition of real estate in your name with lawful source of funds, loan origination documents, and taxes for the past five years. Whether or not a US bank will entertain issuing you a loan secured by a Chinese real estate as a collateral is a question for a US bank and its specific rules and policies. If you do not have a US social security number it may be difficult to obtain a US-based loan based on a collateral located abroad for which a US bank may not have jurisdiction if you were to default on the loan. The value of the real estate must be appraised and either be equal to or exceed the amount of the loan taken in your name as an EB-5 investor. You may want to inquire with a US bank that has Chinese presence.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This is probably the most common basis presently but there may be restrictions in the new law, so either file before March 23, 2018 or find another source until clarified.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    This is possible even though it is an unusual deal. However, you should consult either a bank or business experts who handle international real estate and banking. Alternatively, consider selling your real estate property in China and then use the income to fund your EB-5 petition.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    The U.S. bank will determine whether you can use your Chinese real estate as collateral for the loan. This is not a question which is specific to EB-5 law and practice.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    A loan may be used for EB-5 investment. For showing legal source of funds, you would need to provide the executed loan instrument/agreement, and your real estate ownership, etc. Whether a U.S. bank would grant the loan based on real estate holdings abroad would depend on the bank's loan policy/criteria.

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    Charles Foster

    Immigration Attorney
    Answered on

    In theory, you could use Chinese real estate as collateral to get a loan from a U.S. bank for the purposes of funding your EB-5 investment; however, it may be difficult in practice. There may be some U.S. banks that would have affiliates in Hong Kong or China that could conceivably be able to make those kinds of decisions regarding the value of the Chinese real estate and the security interest that they could acquire such as a lien that would protect their loan. In terms of documentation, you would have to establish the value of the real estate and the loan from the bank should it be made.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Obviously, this is not an immigration law question and only the banks could answer this for themselves. However, I would be surprised any U.S. bank would want to lend money with a collateral located overseas that they may not be able to have full jurisdiction to access and dispose in case of default as they have different banking laws in that country.

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    Mark AM Catam, Esq

    Immigration Attorney
    Answered on

    It is something you would have to check with the lender/bank. Banks have a set of requirements concerning collateral.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    That is a decision for the U.S. bank to make.

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    Blake Harrison

    Immigration Attorney
    Answered on

    Generally, U.S. banks will not secure a loan with foreign assets. However, you could use proceeds from a Chinese bank loan secured by your foreign real estate to make an EB-5 investment.

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    Barbara Suri

    Immigration Attorney
    Answered on

    You will need to contact the U.S. Bank to inquire about their process for accepting overseas real estate as collateral.

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