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How can my uncle gift me EB-5 money from a loan secured by a property co-owned by him and his girlfriend?

My uncle has agreed to use the property he co-owns with his girlfriend as collateral for a bank loan and gift me the money for EB-5. Although his girlfriend has consented to this arrangement, we are wondering if USCIS would question the authenticity of the source of funds because technically she and I are not relatives. Is this arrangement eligible for EB-5? How can we make the source of funds more convincing?

Answers

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    Phuong Le

    Immigration Attorney
    Answered on

    It is possible for a gift from your uncle and his girlfriend to be your source of funds. You would need to submit proof that it is a true gift, irrevocable, and with corresponding supporting documents such as gift agreements, declarations, etc. The focus would also be on whether the giftor (uncle and his girlfriend) can show they lawfully acquired the funds to purchase the property and if they have sufficient equity.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    It is the position at USCIS that they will not accept any proceeds that were not secured by the personal property of the investor. In this situation, the recipient of the loan is your uncle and his girlfriend, not you. USCIS has denied many of cases with this arrangement.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    Yes, you could use this loan as the source of funds for your EB-5 investment.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Just prepare legal documents showing the gift, the trail of the money into the property and you should be OK.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Since a donor (your uncle) must show a lawful source for the amount of funds he gifts you, he can gift up to the value of his interest in the property (as appraised) since there are two persons on the loan responsible for it and secured by the property you (EB-5 investor) do not own as collateral. Hire an experienced EB-5 immigration attorney to property document your lawful source of funds for the I-526 petition.

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    Robin J Gray

    Immigration Attorney
    Answered on

    You would have to trace the source of funds from where she obtained the money until the money was given to your father, if she contributed to the purchase of the property. Of course, your father would also have to provide his source of funds used to obtain the property as well. As long as the source of funds can be verified, it should not matter that she is not a relative.

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    Charles Foster

    Immigration Attorney
    Answered on

    One's uncle can gift one funds in order to make an EB-5 investment based upon a loan secured by a property co-owned by the uncle and his girlfriend. Once the loan is made, your uncle could then gift the funds to you and you would have to establish the lawful source of funds through your uncle and his girlfriend and their source of funds. The fact that the girlfriend is a co-owner should not materially adversely affect your ability to establish a lawful source of funds through this arrangement.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    I do not see a problem with a non-family gift, as long as it is truly a gift with no expectation of repayment, and their funds are properly sourced and documented.

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    Stephen Berman

    Immigration Attorney
    Answered on

    If it is truly a gift to you, and not a loan to you, then it should not be a problem.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    I believe your uncle's girlfriend will need to be on the loan as well. But this is a question you should put to your investment immigration attorney who is going to file your I-526.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Loan proceeds used for EB-5 must be secured by the asset that the investor owns. Thus, a loan taken out by your uncle on a property he and his girlfriend have cannot be used by you for your EB-5 investment.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Your lack of relation is not an issue. A loan secured by an asset you do not own, however, is not an acceptable source of funds.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    He can only gift up to the value of his interest.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    In this type of situation, the most important thing is the documentation which must show that both the donors knowingly consent to such a gift. Also, make sure the laws of your country governing this type of transaction are complied with by all the parties. All in all, this arrangement is acceptable and legal.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    That is not a problem. You will need to document the gift (executed gift instrument) and document lawful source of funds (i.e., your uncle will have to provide the bank loan document, property ownership). Your uncle's girlfriend does not need to be related or provide any documents.

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