How can we as a real estate management company use EB-5 funds for our project?

You must apply to establish a new regional center. The EB-5 project must be in a targeted employment area for EB-5 investments to be $500,000.

Yes, you can use EB-5 funds in real estate business. The field of EB-5 industry has a tremendous number of real estate management companies doing exactly the same in both commercial and residential real estate. However, you need to start by putting your plan into a business plan that details how your company will comply with all of EB-5 requirements. Advisably, contact an EB-5 attorney who can assist you in assembling EB-5 professionals to put the project together. Also, during such consultation, consider virtually all issues including but not limited to the pro and con on whether to form a regional center (RC) or leasing one, the choice of a TEA, etc. Last but not the least, bear in mind that beginning from Nov. 21, 2019, the required EB-5 investment amount will go up from $500,000 to $900,000 (for the TEAs) and $1 million to $1.8 million (for an urban area project). In addition, the new incoming regulations include the new designation of TEA, thus make sure the preferred location for your real estate projects is in reality a TEA zone within the new laws as designated by the USCIS. Otherwise, you may find the planned project is not a TEA and, as such, the zone actually requires $1.8million.

To qualify for the lower amount you need to have the project in the TEA and the jobs have to be created there. You can qualify for or purchase a regional center. As for funding investors, the market is competitive so make sure to offer a good project preferably with adequate collateral for the loans so investors can feel comfortable as to the return of capital.

Finding EB-5 investors for any EB-5 project is the most difficult part when any party seeks to utilize the EB-5 program to raise money. The only way you can find investors and develop a project that is EB-5 compliant is to go where the investors are. The problem is that there are a lot of good and well-established EB-5 projects chasing fewer investors. The other problem is that by Nov. 21, 2019, when the final regulations go into effect, there will be far fewer EB-5 investors at the $1.8 million level or, in a targeted employment area (TEA), at the $900,000 level. You need to work with an experienced immigration attorney who has experience in setting up EB-5 projects and, if available under state law, who&#39s board-certified in immigration and nationality law. The business enterprise would have to be located in a TEA in order to qualify for the minimum dollar amount.

EB-5 is set to change drastically on Nov. 21, 2019, and the changes may impact your plan. I recommend you consult with an EB-5 investment attorney who has significant experience in establishing regional centers. You may also consider the purchase of or partnership with an existing regional center.