+1-800-997-1228
Questions & Answers

Do regional centers make any profit off the investments?

Do regional centers make a profit for every project that they complete? If so, do they make profit off a fixed percentage or is there a flat rate for every completed project?

Answers

  • Avatar

    Reza Rahbaran

    Immigration Attorney
    Answered on

    Yes, regional centers are for-profit entities. The amount of profit varies from project to project.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    Successful regional centers do. How they make the profit varies from project to project.

  • Avatar

    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    No, there is no guarantee that regional centers (RCs) will always make a profit on every project they complete. Although, the goal of an RC for each project is to make profit, the reality is that regional centers do not make profit on every project. Be on notice that an EB-5 investment is considered at risk investment. Also, there is no standard rate of profit; whether fixed percentage or flat rate. What each RC pays as profit depends on the terms of operating agreement per project.

  • Avatar

    Lynne Feldman

    Immigration Attorney
    Answered on

    Every deal is different and absolutely some regional centers do make a profit; others do not, just like in the real investment world.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Yes; regional centers are for-profit commercial enterprises. The way they make money and the amount of profit they receive depends upon the project and upon many different variables.

  • Avatar

    Vaughan de Kirby

    Immigration Attorney
    Answered on

    The purpose of a regional center is to generate a profit. What form that profit takes varies.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It depends, of course. For projects using a regional center and loan model, for example, the lender of the foreign investment funds would receive interest on the loaned amount loaned to the job creating entity. This will be set by the lender or regional center based on a variety of factors.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    Of course, they do. There is no reason for so many people to want to create regional centers if they do not make profit. In all cases, the regional center or its owner is the general partner of the limited partnership of which the investors are part of. As the general manager/partner, they get some administrative fees as well as part of the profit or revenue. Their revenue or profit will depend on the structure of the deal they make to do the project. If it is a loan-based, they get a fixed percentage that is above what they need to pay you as the investor. If equity, they own part of the project and derive revenue from the sale or revenue stream of the projects. I have not seen a success fee or commission like compensation for completing the project, although I have not seen all the documents out there and there are so many different RCs.

  • Avatar

    Ed Beshara

    Immigration Attorney
    Answered on

    An experienced EB-5 attorney who is setting up regional centers and the associated projects will be able to advise on the details of regional centers receiving income and profits. Every EB-5 Regional Center has its own legal business and financial infrastructures which will generate different income and profits.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.