What can be counted towards the $1 million investment requirement?
If the new commercial enterprise requires a physical location for business operation, can the money used to acquire the real property count towards the $1 million requirement? For example, the NCE is a residential elderly care business. Can the money used to purchase the residential homes and subsequent renovation count towards the $1 million requirement?
Answers
The short answer to your example situation is that yes, it is allowable, but as a general rule the acquisition of the underlying real estate should be integral to the business.
Yes, the real property may be used towards the $1,000,000 investment. The underlying purchase must be sufficiently connected/necessary to the new commercial enterprise.
Why not? As long as you are making an equity investment for the project that needs the real estate to operate that is all that matters.
Top Contributors
Marko Issever
Philip Cohen
Raymond Lahoud
Gregory Finkelson
Mark Ivener
Fredrick Voigtmann
Ismael Fernandez
A. Olusanjo Omoniyi
Russell C. Weigel, III
Gerald CipollaLatest Questions
Subscribe for News
Securities Disclaimer
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.
