How can I plan a direct EB-5 investment into a partnership to develop real estate business? - EB5Investors.com

How can I plan a direct EB-5 investment into a partnership to develop real estate business?

I plan to form a partnership with an American citizen in a rural area, where my investment of $500,000 will primarily be used to develop and manage the properties but may also be used for land purchase. My American partner will primarily provide the land but may also invest to develop and manage the properties. Will the above qualify as EB-5 investment? Would all jobs that we create count toward the requirement of 10, despite the partnership? Can my investment be partially used to purchase the land for the development?

Answers

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Answered on

Under current rules all the jobs can be assigned to you but you have to make an investment at the qualifying amount.

Julia Roussinova

Julia Roussinova

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This business model could work, assuming the EB-5 commercial enterprise will create at least 10 full-time positions of at least 35 hours/week per a full-time position. An EB-5-compliant business plan must credibly support the requisite job creation, and USCIS will defer to an agreed allocation of jobs to an EB-5 investor within a partnership. Ensure you hire an experienced EB-5 immigration attorney to help you competently prepare your I-526 petition.

Salvatore Picataggio

Salvatore Picataggio

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You can plan best with a full consultation with an attorney. This level of questioning is a little beyond what a simple Q&A can handle.

Marko Issever

Marko Issever

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Answered on

Yes, you should certainly be able to do this, but be careful. Even though you believe the area where the project will be is "rural" it still needs to be certified as TEA. That stands for targeted employment area. Otherwise, you would have to invest the standard $1 million. There is no problem with your American partner co-investing with you. With EB-5 there is no requirement that you need to own a certain minimum percentage of the business. In fact, as long as your investment is "at-risk" and you invest through any one of the accepted financial instruments, such as preferred shares, etc., technically you do not have to own any part of the business whatsoever. Therefore, all other things constant, your investment should qualify as an EB-5 investment and all the direct full-time positions you create should count toward the 10 minimum requirement. There is no problem with your funds to be used for the purchase of the land, either.

Charles Foster

Charles Foster

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You can make a direct EB-5 investment in a partnership located in a rural area, as that term is defined, and you can count all the jobs created toward your EB-5 investor petition 10 jobs requirement. Yes, the investment may be partially used to purchase the land for development.

Phuong Le

Phuong Le

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Answered on

Although in theory this could qualify (and assuming this is a direct EB-5 project), the biggest issue you&#39ll run into is whether your development/property management business can actually support 10 full-time employees (excluding the EB-5 investor and his family members). Unless your development company/property management company has several additional arms (such as leasing), it may be difficult to hit that job benchmark.

Lynne Feldman

Lynne Feldman

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Answered on

This should work if 10 full-time jobs can be shown from the project.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

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Answered on

Yes to all of your questions, assuming the business can create 10 full-time positions. You should plan the business with the assistance of an EB-5 immigration attorney.

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