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How can an EB-5 investor attract other investors with his direct EB-5 business?

As an EB-5 investor in a direct investment business, I established an LLC and purchased a motel as my new commercial entity. I want to attract one or two more foreign investors who can invest in my company for its renovation and operation, and use this business to support their EB-5 applications. What is the process? Does this involve securities offerings? Can I do this as an EB-5 investor myself?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The idea sounds good but, considering that you have a hotel and you are just seeking one or two more investors, your plan does not appear sustainable. For example, the size of your venture is rather small with just an additional two more investors, their total contribution will be just barely a million dollars to the venture. Considering the fact that each investment is required to create at least 10 jobs, if you have two investors, you must create at least 20 jobs. Is this EB-5 requirement something you can create and maintain? Also, before you embark on this project, you are required to put together a Matter of Ho-compliant business plan. Do this before you proceed further. Advisably, consult an EB-5 attorney on your idea before you proceed further.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Talk with an EB-5 attorney who can help you structure things and plan for additional investors. A good EB-5 attorney will have a team of professionals available who can help in that regard. Taking on additional partners in this way may not result in an offering of securities.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Yes, you would need to comply with securities rules. Many investors involve their friends or retain an agent.

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    Belma Demirovic Chinchoy

    Immigration Attorney
    Answered on

    Yes, you can do this. You need to hire an EB-5 attorney and several other professionals to advise you in the process. A purchased motel may or may not be the most suitable NCE.

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    Charles Foster

    Immigration Attorney
    Answered on

    There is no secret way to attract investors. Normally in a direct investment, one attracts investors through their personal overseas friends or family.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It is possible but you need to show that each investor will create 10 full-time jobs and my experience is most motels do not employ that many staff. Generally, if you are offering investments, you will need a private placement memorandum. Start off with an experienced professional who does this type of cases.

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