When does a real estate purchase qualify as an EB-5 investment? - EB5Investors.com

When does a real estate purchase qualify as an EB-5 investment?

I am looking to help some Chinese friends start a business doing what I am already doing in the States, and qualify for EB-5 at the same time. If they purchase an existing building for $1 million, start their business there, and create 10 new jobs, would the amount invested in the real estate qualify as their investment for an EB-5 visa? In other words, can the purchase of a building be a qualifying EB-5 investment if the new owner starts a business in that building and meets the employment creation criteria?

Answers

Julia Roussinova

Julia Roussinova

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What is the intended business activity here? Investment must be directed to job creation. It is essential to have a comprehensive business plan that will demonstrate how investment is made in the business which will in turn create the requisite number of jobs. Please have your friends consult an experienced EB-5 attorney.

John J Downey

John J Downey

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For the most part, yes. What you are dealing with is tenant occupancy; the building will house companies that will produce new employment. You should do a preliminary study to make sure the created business will produce the required employment.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Purchasing real estate will not qualify on its own. The investment has to create the jobs directly.

Salvatore Picataggio

Salvatore Picataggio

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What is the business activity? A mere purchase of land may not be enough to qualify as an EB-5 business. More specifically, those expenditures will not count toward job creation.

Jinhee Wilde

Jinhee Wilde

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The investment should go to the business activities that will create the requisite jobs, not just the purchase of the building, as the building itself does not create any jobs. The EB-5 compliant business should articulate how the investment will be used to start a business and how that business will create the necessary jobs with details of the jobs being created, etc.

Ian E Scott

Ian E Scott

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This is possible if the building is part of the business. The requirement is that the investor start or invest in a business, and if the business they are investing in requires the purchase of a building, the building purchase can be a legitimate business investment amount.

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