EB5 Landlord FAQ's | 5 Borough Modular

EB5 LANDLORD

Frequently Asked Questions

How many apartments will a project have?

Each project will have up to 100 apartments.

How many projects are planned?

This partnership covers one (1) lane per EB5 applicant.

How many EB5 Landlord units are in each individual apartment building?

Up to 100 per building or complex.

What is the investment process?

Once you decide that you wish to invest in the 5 Borough EB5 program you send a check or wire transfer

to our account at Bank of America. us.

Then you must retain immigration counsel to assist you with the I-526 or I-485 form. If you desire we can introduce you to EB5 counsel in New York City. The average fee for I-526 or I-485 representation is $25,000,00.

Can an EB-5 Investment be a loan？

The capital for an EB-5 investment can be obtained through a loan from a financial institute with the investor's assets as collateral. The collateral, however, cannot be the very EB-5 assets the EB-5 applicant invests in. An investor will also need to prove to USCIS the legal source of funds used to purchase or obtain the assets used as the collateral for the loan.

Can I apply for EB-5 while on H1b?

An H1-b visa holder can apply for an EB-5 visa while working in the United States (I-485) and remain in valid status. If the I-526 petition is approved and a visa number is available when the H-1b visa holder is legally working in the U.S., an I-485 petition can be filed to adjust the applicant’s status to become a conditional permanent resident.

Can I borrow money for EB-5?

Borrowed money can be used as part of the EB-5 investment as long as it is secured by collateral from the applicant. Gifted money could also be authenticated for the purpose of EB-5 when the donor can provide clear documentation on the source of the gifted funds.

Can I get a loan for an EB-5 visa?

Generally speaking, prospective investors can take bank loans to participate in the EB-5 program. However, the loan must be secured by assets, and the collateral cannot be the very EB-5 business one invests in. Investors also need to submit to USCIS the thorough documentation on the terms and conditions of the loan.

Can I work with EB-5 visa?

An EB-5 investor is eligible to work for any U.S. employer after becoming a conditional permanent resident or obtaining work authorizations. Investors do not need to work for a regional center through which they make the investment. If investors or dependents want to work for the very EB-5 business they invest in, they should be aware that their positions may not be used to fulfill the job creation criteria.

Can illegal immigrants apply for EB-5?

If applicants live in the United States as undocumented immigrants, they are generally not eligible for the benefits of the EB-5 program. This is because even if their I-526s are approved, they are not able to legally adjust their status in the U.S. since they don’t have legal status in the first place. If leaving the country and proceeding with consular processing, they will first be faced with immigration bars that might prevent them from entering the country for an extended period.

Does EB-5 really work?

The EB-5 Immigrant Investor Visa Program was created in 1990 by Congress to encourage foreign investment and stimulate the American job market. The program not only benefits the U.S. with inflows of foreign capitals to underdeveloped regions or areas with high unemployment rates, but also offers foreign investors access to world-class jobs, education and healthcare opportunities. For instance, 7,889 foreign investors and their family members received immigrant visas through EB-5 in FY 2019, according to the U.S. Department of State.

How do I get EB-5 visa in USA?

Participating in the EB-5 program is a demanding process that requires planning and careful execution for both investors and their legal/financial representatives. The first step is to locate an EB-5 project, either through a regional center or via a direct investment opportunity. Once a project is selected, the investment is made and the required documents are prepared, an investor can file an I-526 petition to USCIS. If approval is issued and when the investor’s priority date becomes current, he or she can apply for an EB-5 visa at the U.S. consulate or file an adjustment of status petition if located in the U.S.

How does EB-5 investment work?

The amount of required investments for each EB-5 applicant varies depending on the location of the business an investor selects. If investing in a Targeted Employment Area, the investment threshold is $800,000. Otherwise, the minimum investment amount increases. Project developers can use EB-5 investments as a powerful source of funds for their development projects. Existing businesses can also attract foreign investors with direct investment opportunities to scale up and create more jobs with the EB-5 capital.

How do I get my EB-5 money?

Regional centers usually have detailed terms and conditions on the return of investors’ EB-5 capital in the investment agreement or other documents. Investors need to review these documents with their EB-5 attorneys carefully to understand the exit strategies before any investment is made. Investors also need to understand that USCIS requires the EB-5 capital to be kept “at risk” during the conditional permanent residency, which means that investors can not get their EB-5 money back during this period if they want to keep their immigration benefits.

How long does it take for EB-5 to work?

EB-5 processing times are case-specific. USCIS’ website publishes the estimated processing times of various EB-5 forms at different service centers. For an investor from a country without visa backlogs, once the I-526 is approved, he or she can either file a DS-260 and obtain an EB-5 visa to enter the U.S., or proceed with an I-485 application to adjust status while in the U.S. Upon approval, the investor can live and work without restrictions and start to enjoy the benefits of EB-5.

How long does the EB-5 process take?

The EB-5 process, which includes the processing of Forms I-526, I-485 and I-829, varies based on the workload of different USCIS service centers across the U.S. and other case-specific factors. USCIS updates its website on the estimated case processing times for each form, which can be used by investors as a general guideline. Investors coming from backlogged countries may experience longer waits.

How many EB-5 visas are issued each year?

About 10,000 visas are reserved every fiscal year for the EB-5 visa category. These visas are issued to EB-5 investors, their spouses and dependent children under 21. Each country can take up to 7.1% of the annual visa quota. Unused visas are allocated to investors from countries with high demands.

How much does an EB-5 visa cost?

In addition to the amount of investment and filing fees required by USCIS for the EB-5 program, investors may also need to pay for the legal, administrative and due diligence services associated with an EB-5 application. The required EB-5 investment is $800,000 for a project located in a Targeted Employment Area (TEA) and higher for a project in a non-TEA. Investors must also pay the filing fees for the EB-5 forms – I-526, I-485 or DS-260, and I-829. Many investors retain an immigration attorney to help them handle the processing and filing of their applications, and some might hire taxation experts for pre-immigration tax planning and due diligence teams to conduct research on project candidates, which might incur extra costs.

How much money do you need to invest to get a green card?

For the EB-5 Immigrant Investor Visa program, the required investment amount is $800,000 for projects in a Targeted Employment Area (TEA) and higher for non-TEA projects. Investors are also responsible to pay the filing fees of Form I-526, Form I-485 or DS-160, and Form I-829, which are the essential forms for an EB-5 case. Some investors might also retain services from legal, taxation and other professional teams during this process. For investors investing through a regional center, administration fees may also occur.

How much should I invest in EB-5?

The investment criteria of the EB-5 investment vary depending on the location of the project a foreign investor selects. If a project is located in a Targeted Employment Area (TEA), the minimum investment is $800,000. For projects in non-TEAs, the required investment amount is higher. In November 2019, the EB-5 program went through a major legislative overhaul that made several significant changes to TEA designations. EB-5 investors should check the TEA-eligibility of a project before initiating any EB-5 applications.

Is EB-5 Worth it?

Since its inception in 1990, the EB-5 Immigrant Investor Program has helped thousands of foreign investors and their families realize their American dreams. With world-class education, healthcare and social welfare, the U.S. has a lot to offer to foreign individuals who can help develop the country. Unlike other visa routes that have strict requirements on the applicants' age, education or business background, the EB-5 program is accessible for almost every foreign investor, as long as the required investment can be proven to come from legal sources.

Is EB5 Safe?

It is crucial for potential investors to understand that participating in the EB-5 program, by its nature, is to engage in an investment activity where gains and losses can occur. There is no guarantee for the safety of one’s capital in an EB-5 project. It is also required by USCIS that EB-5 investors need to maintain their investments “at risk” during the two-year conditional permanent residency. However, with thorough planning and due diligence, an investor can minimize their investment risks and increase the possibility of getting their investment capital back by participating in the 5BoroughEB5 Modular program..

What happens to the money invested in eb5?

The EB-5 capital from a foreign investor is used by a U.S. business to complete the selected project and create American jobs. For a direct EB-5 project, the EB-5 funds are used to invest in inventory, equipment or other tangible properties.

What is the fastest way to get U.S. citizenship?

Although the United States provides several paths for foreign nationals to obtain citizenship, including family-based and employment-based immigration, the EB-5 Immigrant Investor Program is an efficient way towards U.S. permanent residency and potentially citizenship, while making a significant contribution to underserved communities and creating American jobs. The processing time of EB-5 varies on a case-by-case basis.

Who is eligible for EB-5?

To be eligible for the EB-5 program, investors need to be able to make the required investment in a U.S. business and create jobs. Potential investors must also be able to prove the legal source of funds for their investment to qualify. Unlike investment immigration programs from some other countries that have strict criteria on the applicants’ net worth, the EB-5 program does not impose such requirements on applicants. Investors also don’t need to show that they are accredited investors, as demanded by SEC for other types of securities offerings.

What is a "targeted employment area"?

A targeted employment area (TEA) is a rural area or a location with a high rate of unemployment. EB-5 investors who make their investment in a TEA can enjoy the reduced investment threshold. However, not all rural areas or regions of high unemployment qualify as a targeted employment area in the EB-5 field. The designation of a TEA is adjudicated as part of an investor’s I-526 petition. An investor must, in his or her petition, demonstrate that the location of the project meets the requirements of TEA.

Must the entire amount of investment be made at the time of applying for the EB-5 Visa?

It is highly advisable that investors make the entire amount of investment required by the EB-5 program and keep full documentation on the source of funds at the time of filing an I-526 application. Insufficient investment or incomplete documentation may cause RFEs or denials from USCIS, which could be detrimental to an investor’s case.

Are there restrictions on the types of businesses in which the investment must be made?

Any lawful for-profit businesses, no matter which industry it is in or how it is structured, can be an EB-5 project. Some of the popular types of businesses include real estate, restaurants, medical facilities and infrastructure. The EB-5 business can be structured as a sole proprietorship, a partnership, a holding company, a joint venture, a corporation, an LLC or other types of entities. Nonprofit organizations don’t qualify for EB-5.

What are the job creation and investment requirements, and do I need to create them myself for the EB-5 Visa Program? How do jobs qualify for projects that are already under construction?

The EB-5 program requires investors to create 10 full-time positions for permanent residents and citizens of the U.S. For regional center projects, both direct and indirect jobs can be used to fulfill the requirements on job creation, and investors working with a regional center are usually less involved in the job creation process, as the regional center would take the majority of such responsibilities. For investors in a direct EB-5 investment who are actively engaged in the daily operation of the EB-5 business, the fulfillment of the job creation criteria can be a challenge. Investors who participate in a project already under construction must pay special attention in demonstrating to USCIS the connection of their investment with the jobs created. This can sometimes be questionable as different projects allocate the jobs created to investors in different orders. Investors should consult with a qualified immigration attorney before any investment is made.

Can I invest in a troubled or failing business where the investment results in saving the business?

It is possible to invest in a troubled or failing business for the purpose of EB-5, saving the business, keeping the existing jobs and creating new jobs. Investors who are interested in this route of investment needs to first identify an investment target that meets USCIS’ definition of “troubled businesses.” Investors also need to be able to provide adequate documents and financial information of the business to USCIS. Also, due to its “troubled” nature, investors in such investments may be exposed to higher financial risks that might endanger their investment benefits.

May two or more investors qualify for immigration based on a pooled investment in a single business?

It is possible for two or more investors to participate in the EB-5 program and enjoy immigration benefits based on a pooled investment. This requires careful planning and proper structuring of the job-creating enterprise. Each participant in the money pool needs to meet the investment threshold, and the allocation of jobs created by the enterprise needs to be strategically planned to ensure that each participant can meet the job-creating requirements. It is highly advisable that investors interested in this investment route discuss with immigration, corporate and securities attorneys before any investment is made.

Are the investors free to travel after obtaining conditional permanent resident status?

Conditional permanent residents, like all other permanent residents, are free to travel in and out of the United States. However, to keep one’s status, an EB-5 investor needs to pay attention to the physical presence requirements imposed on all green card holders. If an investor needs to be out of the U.S. for an extended period of time, it is of great importance that he or she applies for the necessary travel documents in advance to avoid any issues when trying to enter the country again as a permanent resident.

Is the immigration status granted to the investor valid indefinitely?

Once investors' I-526 applications are approved, they obtain the status of “conditional” permanent resident, which is valid for two years. If all other requirements are met, they can then file I-829 applications at the end of their conditional permanent residency to remove the conditions. Upon approval, investors are granted 10-year green cards that can be renewed indefinitely as long as other requirements imposed on permanent residents are met.

What documents must be filed with the petition?

Although every case is unique and various supporting documents can be submitted to validify the case, generally speaking, an I-526 petition package must include the proof that the required amount of investment has been made by the investor in an EB-5 eligible project and the project has received or will receive the investment. USCIS is also looking for documents with a detailed description of how the investment funds were obtained by the investor through legal means. Investors also need to include a business plan in the application packages, explaining how the required jobs will be created by the money they invested.

What documentation must be presented to prove that the investor's funds came from a lawful source?

Documents that can be used to prove the legal source of funds for an EB-5 application include tax return documents, pay stubs, bank statements, trading/bonds/stocks and other securities statements. If the principal petitioner obtains the investment funds as a gift from parents or other relatives, a legal declaration and documents to demonstrate the legal source of funds from the donors are also needed.

What is the procedure for an investor to qualify as an immigrant based on the investment?

To obtain U.S. permanent residency through the EB-5 program, an investor needs to first locate a qualified EB-5 project and retain legal, tax and other necessary professionals. After due diligence is completed, the investor can start working on transferring the required amount of funds to the selected EB-5 project, while his or her immigration attorneys prepare and files an I-526 petition on the investor’s behalf. Upon I-526 approval, the investor becomes a conditional permanent resident of the U.S., either by filing an I-485 application to USCIS or a DS-260 to the U.S. consulate abroad. If the job-creating requirements are fulfilled, the investor can file an I-829 petition to USCIS at the end of his or her two-year conditional permanent residency. If approved, the investor becomes a permanent resident.

How many eb-5 visas are available every year?

Every fiscal year, about 10,000 visas are reserved for the EB-5 visa category, which are granted to EB-5 investors, their spouses and dependent children. Each country is allocated approximately 700 visas every year, while unused visas are distributed to investors from countries with high demands.

I want to invest in the USA and get a green card - is the EB-5 visa program suitable for me?

The EB-5 Immigrant Investor Visa Program, created in 1990 by Congress, is aimed to incentivize foreign investment and stimulate the American job market. The program provides foreign investors a pathway to green cards, which also comes with access to world-class work, education and healthcare opportunities. With strategic planning and in-depth due diligence, foreign investors can not only achieve their investment goals in the world’s strongest economy, but also enjoy the immigration benefits brought by EB-5.

Is there an eb-5 visa waiting list?

About 10,000 visas are reserved every fiscal year for the EB-5 visa category and each country can take up to 7.1% of the annual visa quota. Because of this country limit, investors from countries where EB-5 visas are oversubscribed may encounter extended waiting time before visa numbers are available for them. Currently, only investors from mainland China and Vietnam are experiencing such visa backlogs.

Should I hire an immigration attorney to help me with EB-5?

Investors need to understand that EB-5 is a complex process that requires professional knowledge and expertise in U.S. immigration, securities, investment, taxation, among others. Any unadvised decisions may damage one’s immigration benefits. An immigration attorney not only helps the investor navigate the complexity of EB-5, but can also provide significant advice on other aspects of U.S. immigration, including travel, study and employment, to avoid accidental violation of U.S. immigration regulations that might endanger one’s EB-5 application.

Am I required to speak English to obtain a green card through the EB-5 program?

Unlike some investment immigration programs offered by other countries that impose strict criteria on the applicants’ language skills, business background and education, the EB-5 program does not require investors to speak English. However, investors need to make sure that they understand all the documents related to their EB-5 investment. This can be done by hiring a qualified translator. When attending the EB-5 visa interview at the U.S. consulate, investors may bring an interpreter to answer the questions from the consulate officers.

Am I required to be in good health to obtain a green card through the EB-5 program?

Certain health-related grounds could impact one’s admissibility in entering the United States. All nonimmigrants and immigrants, including EB-5 visa holders, are subject to these inadmissibility grounds. Prospective investors can find detailed descriptions of medical conditions that impact admissibility on USCIS’ website. EB-5 investors are also required to provide medical exam reports when applying for EB-5 visas at U.S. consulates abroad.

What are the job creation and investment requirements, and do I need to create them myself for the EB-5 Visa program? How do jobs qualify for projects that are already under construction?

The EB-5 program requires investors to create 10 full-time positions for permanent resident and citizens of the U.S. For regional center projects, both direct and indirect jobs could be used to fulfill the requirements on job creation, and investors working with a regional center are usually less involved in the job creation process, as the regional center would take the majority of such responsibilities. For investors in a direct EB-5 investment, who are actively engaged in the daily operation of the EB-5 business, fulfilling the job creation criteria can be a challenge. Investors who participate in a project already under construction must pay special attention in demonstrating to USCIS the connection of their investment with the jobs created. This can sometimes be questionable, as different projects allocate the jobs created to investors in different ways. Investors should consult with a qualified immigration attorney before any investment is made.

Are my family members eligible to qualify for an EB-5 visa?

Certain family members are eligible to enjoy the immigration benefits of EB-5 as the principal applicant’s dependent. Qualified family members include the investor’s spouse and unmarried children under 21 years old. Parents, grand parents and siblings of the investor cannot be included in the EB-5 application.

Can my adopted children qualify for an EB-5 visa?

The eligibility of adopted children as an EB-5 beneficiary depends on the age of the children when the application is filed, the age of the children when the adoption takes legal effect, the country of origin of the adopted children, among other factors. Investors with adopted children need to consult with a qualified attorney before starting the EB-5 process.

Can I apply for an EB-5 visa if I have been rejected or terminated in the past by USCIS for an L1, E2, B or other visas?

The EB-5 eligibility of a prospective investor with a history of other types of visa denials depends on the reasons and grounds for the visa rejection. Generally speaking, a criminal history, past violation of U.S. immigration, fraudulent statements and grounds of inadmissibility could negatively impact the application success of all types of U.S. visas. It is advisable that investors fully disclose their previous visa denials to their immigration attorneys to determine the eligibility for EB-5.

What are the cost benefits of attending a U.S. university and is my child eligible for lower tuition rates under the EB-5 visa program?

To many foreign investors, attending a U.S. university means access to a world-class education, a strong employment market and a bright future for their children. Generally speaking, once an EB-5 investor and their families obtain conditional green cards, they are considered permanent residents of the U.S. and can enjoy benefits correspondingly. Rules for resident and nonresident tuition and fees vary depending on the states where investors reside and the types of universities of the investors' choice.

What risk do companies have in accepting EB-5 investments?

Companies accepting EB-5 investments must follow rules and requirements of EB-5 to protect the immigration benefits of their foreign investors. For instance, the money taken from investors must be used to create enough jobs; the type of positions created must fulfill USCIS’ requirements; the jobs need to be maintained during the conditional permanent residency of EB-5 investors. Business owners should consult with qualified immigration and securities attorneys before accepting any EB-5 financing.

What kind of background information is USCIS concerned with?

USCIS may look into investors’ criminal records and health-related grounds for inadmissibility. Investors will also be checked against the national security databases and databases related to money laundering or financial crimes.

When do I choose an EB-5 project and sign documents?

There are many factors to consider when it comes to selecting an EB-5 projects, and thorough due diligence on the track history, reputation and credibility of the regional center and other project sponsors is essential before any investment is made. When investors feel confident that they have put their money and the future of their families in good hands, investors should review all the documents with the help of their immigration attorneys to make sure there is no confusion or omission on the details of some significant aspects, including the EB-5 timeline and exiting strategies.

When do I prepare the I-526 petition / conditional green card application?

The preparation of the I-526 petition is usually done with the help of an immigration attorney and the sponsors of an EB-5 project. Investors need to submit documents on their personal information, as well as proof of the legal source of funds used for the investment. It is recommended that the preparation starts as early as possible to allow enough time for collecting necessary documents. Once an I-526 petition is approved and if the investor’s priority date is current, he or she can either file an I-485 application to USCIS and adjust the status, or file an DS-260 petition to apply for a visa at U.S. consulates overseas.

When do I receive my conditional green card after applying for EB-5?

Upon the approval of an I-526 petition, and if a visa number is available, the investor can either file an I-485 application to USCIS and adjust his or her status, or file and DS-260 petition to apply for a visa at U.S. consulates overseas. Investors will then become conditional permanent residents and receive their two-year green cards. Investors coming from backlogged countries may experience longer waits after the approval of I-526s.

When do I receive my permanent green card after applying for EB-5?

Ninety days before the second anniversary of one’s conditional permanent residency, an investor can start filing an I-829 application to USCIS to remove the condition on his or her green card. The submitted documents must prove that the job creation requirements have been fulfilled. Upon approval, the investor will be granted a permanent green card that is valid for 10 years and can be renewed indefinitely if other requirements are met.

Can my permanent green card be taken away? How do I keep my permanent green card after I receive it?

Just like permanent residents of the United State who receive their status through other means, EB-5 investors, after becoming a green card holder, are subject to the physical presence requirements. If an investors needs to be out of the U.S. for an extended period of time, it is of great importance that he or she applies for the necessary travel documents in advance to avoid any issues when trying to enter the country again as a permanent resident.

How much time must I spend in the U.S. each year to keep my permanent residency?

The physical presence requirements on green card holders depend on many factors. Generally, a permanent resident should not be absent from the United States for more than six months per year. Otherwise, his or her status might be deemed abandoned. It is also advisable for an investor to keep genuine ties with the United States, including having a valid driver’s license, keeping a U.S. mailing address, etc. If an investor with a green card needs to be out of the U.S. for an extended period of time, it is of great importance that he or she applies for the necessary travel documents (re-entry permit) in advance to avoid any issues when trying to enter the country again as a permanent resident.

What is the difference between permanent residency and citizenship?

An EB-5 investor becomes a permanent resident of the United States when the I-829 petition is approved by USCIS. Then he or she is eligible to travel, live, study and work freely in the U.S. Although permanent residents can enjoy many benefits as U.S. citizens, they do not hold U.S. passports. Their rights are also limited when it comes to voting, running for public offices, and applying for federal employment. EB-5 investors become eligible to apply for naturalization after obtaining and successfully keeping their green cards for five years.

Am I entitled to keep my citizenship from my country of origin?

The U.S. doesn’t require its citizens to renounce other citizenships when applying for citizenship. An EB-5 investor is eligible to apply for naturalization after obtaining and maintaining permanent residency for five years, without having to abandon the citizenship of his or her country of origin. However, some countries don’t allow dual citizenship for their citizens. Investors need to check the relevant regulations of their countries of origin before applying for citizenship of the U.S.

Does the entire 800,000 investment have to be made at the time of applying for EB-5?

It is advisable that investors make the entire amount of investment, which is $800,000 for a project in a targeted employment area and higher for a non-TEA project, to the business of their selection and keep full documentation on the source of funds at the time of filing an I-526 application. Insufficient investment or incomplete documentation may cause RFEs or denials from USCIS, which could be detrimental to an investor’s case.

What is meant by the requirement that the investors' assets must be “lawfully gained”?

The investors’ funds used for their EB-5 applications could come from a large variety of sources, including employment earnings and bonuses, sales of business assets, inheritance, gifts, stocks, home equity loans, loans from financial institutions secured by investors’ assets. Funds from the above-mentioned sources could all be deemed “lawfully gained” as long as investors can provide adequate and convincing documentation. The demonstration of the legal source of funds is a challenging task and needs strategic planning. Investors should consult with their immigration attorneys to work out a suitable strategy.

Can money gifted by a parent or other relative be used for an EB-5 investment?

Gifted money from parents or other relatives could be authenticated for the purpose of EB-5. Investors must provide a legal statement to declare the donor relationship. The donor will also need to provide clear documentation on the source of the gifted funds.

Would my global income and assets be taxable in both my country of origin and in the United States?

The United States requires its residents to report taxes on their global earnings. EB-5 investors usually become liable to U.S. taxes after receiving their conditional green cards, and thus will be taxed for incomes earned domestically and abroad. There are tax treaties between the U.S. and other countries that, if used appropriately, could help investors avoid dual taxation or reduce tax liabilities. It is important for EB-5 investors to consult with tax professionals and conduct effective pre-immigration tax planning.