Part Three of a Three-Part Series
When it comes to an investment visa, an EB-5 investor can obtain a loan that is secured by their personal or real property from:
Immigration Attorney, Edison Samways from Alexandre Law firm notes:
The loan and terms of repayment are properly documented to facilitate the origin and tracing of investment funds.
Alexandre Law Firm, with offices in Orlando, FL, and Queens (New York) works with Chinese and Latin American EB-5 and E-2 investors. They use different financing mechanisms and see more and more clients inquiring about different loan models.
What is Needed to Access Loans
If the investor owns a house, or other real property, and does not want the hassle of dealing with a bank, his friend or family member can agree to loan the funds needed for the EB-5 investment. And some of the documents that might be required include:
- An appraisal of the property securing the loan.
- Proof that you have clear title to this property.
- A signed and executed agreement mortgaging the property, evidence of the transfer of the loan proceeds to your account from the lender’s account.
- Proof that the person loaning you the funds obtained the money lawfully.
This is a great way to simplify obtaining funds for investment. Also, the tracing of the origin of those funds. However, always remember that the assets of the EB-5 company cannot guarantee repayment of the loan. Only the separate assets of the EB-5 investor can guarantee repayment.
Conclusion
The EB-5 investment often has a 5-year tenure and a low rate of return. So, it is worth working with your trusted advisor. Especially on different ways to finance your EB-5 investment.
Many prospective EB-5 investors do not know the options available to them. Including who can provide the lending and on what terms.
The securities lending option is ideal for those with sufficient liquid assets. And lending based on real estate assets bodes well for those investors who had purchased U.S. real estate in the past few years. As for the family or friend option, it is quite fortunate if you have those relationships!
