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How do I choose between direct or RC investment?

I am on the fence on whether I should continue reviewing these EB5 projects that are extremely one-sided towards the developer or look into maybe acquiring a franchise. I am not interested in managing a new business but if push comes to shove, I will not shy away from it. From your past experiences which option is the safest approach to ensuring my investment and my EB-5 eligibility?

Answers

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    There are plenty of EB-5 projects that are not one-sided. It takes time to study the current projects, but I highly recommend it. Our firm can help you in looking at the immigration law side of the project. If you have any other questions, please do not hesitate to contact me.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    If the investment target is $500,000 as opposed to $1,000,000, the investment into a quality regional center project is preferred. The issue is to find a quality project that will likely be able to return the investment. I will be happy to discuss in detail.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    Take a look at this article, it will give you some guidance on this process: http://www.eb5investors.com/eb5-basics/eb5-due-diligence Good luck!

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    EB-5 is not a ''one size fits all'' category. Just as there are different investment opportunities, there are just as many EB-5 choices, all with varying degrees of risk and reward. Most EB-5 approvals are for regional centers, but that is because they market is saturated with this type of EB-5 investor. The approval rates are fairly high. If you do not wish to manage the business, then you should look into the regional center option. If you wish to have complete control over your investment, then perhaps the direct EB-5 is the way to go. You should sit down with a financial adviser and an experienced EB-5 immigration attorney (either together or separately) and listen to their advice.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    With a direct EB-5 investment, you get to retain more control of the business into which you invest (unless you work out some sort of management agreement), but you will not get the benefits of counting indirect employment creation or associating with a regional center with a history of success. Ultimately, this is a decision that only you can make.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Feel free to set up a consultation to discuss and we can go through the pluses and minuses of each.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Direct or stand-alone are not inherently better than regional center investmentsthe key is to undertake due diligence on the specific project in which you invest.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    I have seen petitions and businesses failing in both direct and through RC investment. In both situations, the EB-5 rule requires $ 1 million investment unless the business is located in a Targeted Employment Area (TEA) or in a rural area of less than 20,000 in population. Many of the failing petitions, both direct or through RC, have been because the business was not actually located in those excepted areas and the investors erroneously thought or was informed that EB-5 cases require only $500,000 investment. One difference you need to be aware of is that for direct investment you own and operate, and must actually create 10+ full-time jobs, which must be backed by I-9s and W-2, etc., whereas through RC, the jobs report should be created by an economist or some other person who knows how to prepare a report per USCIS acceptable formula. This jobs report must be part of the business documents. If you do not wish to actually run the business and/or do not have the experience to run it to be successful and sustaining for several years, the better option may be choosing a reputable RC with great track record there are few with 100% approval track record and let them take care of the business part of the EB-5 case.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The first step is to choose an experienced EB-5 attorney. With a direct investment in a franchise business you may have a managerial role while other managers within the new commercial enterprise play a major managerial role. We will need to strategize and discuss a number of matters before a decision is made on the best approach.

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    Anthony Korda

    Immigration Attorney
    Answered on

    There are a number of regional center projects available that will meet the needs of an EB-5 investor in terms of both immigration and investment benefit. Choosing the right project may be difficult given the plethora of regional centers and projects available. However, with the assistance of suitably qualified and experienced professionals, the choice of project can be made easier. Ultimately, the difference between a direct investment and a regional center project will depend on the amount of day-to-day management involvement the investor desires and the investor''s experience in managing such a business in a new country or new industry, or both.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    This is a good question faced by many clients. You must retain an attorney who has a securities background as well as being able to demonstrate to you the required expertise in EB-5.

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