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Questions & Answers

How does a Regional Center make money?

How does a Regional Center make money? Are they allowed a percentage or a fee for service for every project that the Center brings to fruition?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The regional centers charge a fee to the project developers and administrative fee for each EB-5 investor. They may also have equity in the project itself.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Regional Centers charge syndication/development fees and make profit on projects.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    Regional centers make money based on their projects. Most projects are loan based. The EB-5 investor''s funds are invested into the project. The EB-5 investor makes a small percentage of interest. The project makes money by charging a higher percentage which is their profit.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Regional Centers make money on the project, plus by charging a development and administrative fee.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The regional centers charge some administration fees for every investors and they also would receive interest and/or rate of return on the investment they make into a project.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    It all depends on the structured deal. Some developers "rent" regional centers which could charge upfront fees, charge a point per investor, take equity stakes in the project, etc. Owning a regional center can be a profitable enterprise.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Usually by charging fees to EB-5 project developers and EB-5 investors.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Each regional center is different. Sometimes, they receive a portion of the syndication/administration fee. Sometimes they are general partners in the investor''s limited partnership. A regional center''s involvement in a project must be documented and disclosed to all participating investors and it must be disclosed in the annual compliance filing with the U.S. Citizenship and Immigration Services.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    A Regional Center charges for their administrative fee to manage the projects which fall under their Regional Center.

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