Can EB-5 investments purchase securities of a Non-Traded REIT?
It could be hard. The core concept of EB-5 is job creation. Unless the project can prove that buying the Non-Traded REIT will create sufficient jobs, simply buying securities will not qualify the investor for an EB-5 visa.
Real estate investment trust (REIT) is any corporation, trust or association that acts as an investment agent specializing in real estate and real estate mortgages. The purpose of these REIT are designed to be passive and looking for highest amount of interest payments they could receive from the mortgages they hold. This type of passive investment does not qualify for EB-5 program, which is designed as an active, job creating investment vehicle. There is no rational basis to determine which of these mortgages or mortgage backed bonds may have created any jobs at all. If the EB-5 investment does not actually create jobs, whether directly or indirectly depending on the methodology, then I-526 (immigrant petition) and ultimately, I-829 (removal of condition) applications will be denied and an investor will not get the green card.
For those who do not know, a REIT is a Real Estate Investment Trust. They receive favorable tax treatment, although they are generally limited to making investments in Real Estate. It may be theoretically possible for an EB5 investment to be structured in a way that will make an investment through a REIT work, or at least structured in a way that "technically" satisfies USCIS regulations. The biggest obstacle will be convincing USCIS that your investment in the REIT can be directly linked to any job creation resulting from the investments made by the REIT. This may be too tenuous a connection. There may be other ways of structuring your EB5 deal in order to provide some of the benefits you would get from an investment in a REIT. You should discuss your specific situation with a corporate attorney knowledgeable in EB5.
No, it will not qualify because there would likely be no job creation.
Please seek the services of experienced Attorneys and other professionals who will assist you in making decisions as to REIT''S. Also in regard to the REIT''S what will be the strategy for using the Foreign National Investors funds for the new business.
Thank you for contacting us. EB5 investments can be structured to incorporate different types of investments. We can analyze the investment and projects to see how it can fit Non-traded REIT. We have a team put together of SEC attorneys, economists and immigration attorneys who specialize in these. If you need further information we can arrange a consultation.
Generally no, or at least it would be very difficult, but some alternative structures might be available to accomplish a similar effect.
Simply buying security may not qualify for the EB-5 investment. It depends on a lot of factors to determine whether your example will qualify. You can call my office to discuss.
I do not believe so as it is hard to prove job creation.
Doubtful this will work, since it will be difficult to show a nexus between the investment and subsequent job creation.
