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How can an EB-5 investor assess a regional center project?

How do I assess whether a regional center project will be profitable and whether the principal investment amount of $500,000 will be returned after a period of five years? Will I, the investor, receive any monetary benefits while my investment is bound to the regional center project?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It is in your best interest to hire an experienced EB-5 immigration attorney and due diligence specialist.

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    Yazen Abdin

    Immigration Attorney
    Answered on

    One option is to seek the help of an investment advisor. The amount of return on your investment will vary based on the project you choose to invest in.

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    John J Downey

    Immigration Attorney
    Answered on

    You should obtain help from a business consultant to perform "due diligence" regarding the business and the principals involved. Return of investment and receipt of dividends, etc., will be controlled by the initial agreements signed by you and the regional center.

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    Charles Foster

    Immigration Attorney
    Answered on

    There is no way to 100 percent determine whether or not you will see the return of your capital investment or any profit on same. The program requires a true investment; you can either make money or lose money, but hopefully at least receive a small return. The best way to make sure you invest in a sound EB-5 regional center project - think about its reputation and prior success. It is not necessarily the length of time that the regional center itself has been in business, but whether or not the project developer has a successful record. There are also a very few registered security brokers who specialize in giving advice with respect to EB-5 regional center investments.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    An EB-5 investment has some additional unique characteristics, like job creation, but the starting point like with all investments is to undertake thorough due diligence with a due diligence specialist.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Please note that most of the EB-5 investment projects/vehicles are not designed to be profitable, but more focused on providing immigration benefits by creating the requisite jobs. Thus, most of the successful (high approval track record) regional centers will provide 0.5-1 percent interest payments in most of their projects. In fact, some regional center projects with an unusually high rate of return are a red flag that require more scrutiny.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    If you do not feel confident to do this yourself, you should retain a business advisor or one of several agents who evaluate the regional centers.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Look at their track record to see how many people have invested and how many got their money back.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    The due diligence required to make an informed decision is very complex. I recommend you retain a licensed broker-dealer or a registered investment advisor to complete your due diligence.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Investment advice may be obtained from an investment advisor. There are some EB-5 specific investment advising services now, but any experienced financial professional should be able to review an EB-5 project for its investment and business viability. This should be paired with U.S. immigration advice from an EB-5 immigration lawyer. As for returns on investment, it will depend on the project offering, but monetary returns on the investment are common.

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