What happens in the case of an EB 5 loan agreement or you can say EB 5 investment is that a lender with a good reputation, such as a commercial lending bank or a credit union, finances the real estate project. The borrower (usually a non-residential property owner) makes a down payment that is usually around 10 percent.
The remainder is then paid on a monthly basis in regular installments until it is fully paid. The repayment schedule for this type of financing is relatively flexible, as the lender has the flexibility to decide how long the loan term should be.
In order to secure an EB 5 contract, there are various requirements that the borrower must meet and hire a good EB 5 immigration lawyer. One of these is that the borrower must have enough collateral, which can mean collateral such as a property or cash.
For a borrower to qualify for the financing, he must provide some type of documentation that substantiates his ability to repay the loan. This documentation could include statements of his business history and his annual and quarterly earnings reports.
If you are looking into getting financing for an EB 5 contract, then it pays to first look into the different types of projects that you have available. There are several different projects that fit this description. Some of them include:
- a single family home
- condominium project
- row house project
- duplex project
- apartment building project
There are also several different styles of properties that could qualify for this kind of loan. Some examples of these styles include:
- residential properties
- mobile homes
- foreclosure properties
- residential complexes
- industrial properties
- manufacturing properties
The next step to take in your search for an Eb loan is to research all the different aspects of real estate. There are different ways that you can do this. You can go to:
- real estate agencies
- talk to real estate brokers
- read real estate material
- watch real estate television programs
- search online for real estate news
It is a good idea to talk to family and friends that have recently gone through the process of financing projects. They may have some good advice for you to follow. Also, if you are still interested after reading this article, consider talking with an agent who specializes in Eb loans.