Hello, I have $150K in cash and own four rental properties on mortgages. I have equity around $100K+ in each rental. How could I use these assets as EB-5 capital? Could I get a loan on the rental properties, and would this count as a legal funding source?
Answers
Michael A Harris, Esq
Immigration Attorneys DirectoryTo raise EB-5 capital using your rental properties, you can obtain a loan against the equity in your properties, provided the loan comes from a regulated financial institution, such as a bank. USCIS allows the use of loan proceeds as EB-5 investment capital, but it is critical to document the loan’s legitimacy and the lawful source of the lender's funds. Loans from unregulated sources, such as hard money lenders or personal loans from friends or family, will require additional evidence to prove the funds' lawful origin. By using a standard loan from a regulated lender, you simplify the source-of-funds requirement and streamline the EB-5 process. Proper documentation, including the loan agreement, property appraisals, and bank records showing the loan’s disbursement to your personal account and its subsequent transfer into the EB-5 investment, is key to demonstrating compliance.
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