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What happens if some investors receive the return of their original capital contribution while other investors’ funds are redeployed?

We are Korean investors who just arrived in the U.S. on our conditional green cards. We invested in a large EB-5 project. We know that a majority of the investors in the project are from China and are not in the United States yet because of the visa backlog in that country. We understand that these investors will need to have their investment redeployed to keep it at risk. However, we will be filing for our I-829 in less than two years. At that time, can we get our investment back or does the regional center have to redeploy our investment with the other investors? Is there anything we can do to make sure that our investment is not redeployed?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    These are the questions you should address to the Regional Center because the offering documents will provide terms when you may recoup your investment as part of your exit strategy from the project.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    This depends on the particular documents and how this has been structured. Generally all investors have to be treated fairly and no preference can be given to one unless all agree. This is also an evolving situation.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    After you file your I-829 petition, you are able to obtain your principal back. However, the terms of the agreements that you signed when you made the investment may determine the timing of when you can receive your principal back.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You need to check the exit strategy language on the subscription agreement and the PPM for how/when/conditions under which you will be getting your initial investment returned.

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    Charles Foster

    Immigration Attorney
    Answered on

    Once you have filed your I-829 Petition to Remove Conditions, the reason the Center does not have to re-deploy your investment is for the very reason you have indicated. For the Chinese, given the fact of the lack of availability of visa numbers, they cannot yet obtain their Conditional Lawful Permanent Residency. Their funds must stay at risk throughout the process until they are eligible to file their Petition to Remove Conditions for Form I-829. You should not have to do anything at all to make sure that your investment is not re-deployed because that would not make sense in your case. You should talk to the management of your EB-5 Resource Center Project to verify the same.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    It depends on what your subscription and limited partnership agreements state on your rights as a limited partner. There are many regional centers and their projects that will not allow you to opt-out from having your funds redeployed even though your I-829 has been approved and you need not have your funds at risk anymore, which could mean your money could be tied up to 10, 20 years or more. This is a problem with many very large projects that many of the Migration agents are selling because they are getting a lot of money (up to $ 120,000 or $150,000) as commission. There are some regional centers who will buy out a limited partner's share by using their own funds as General Partner so that a limited partner whose I-829 has been approved does not have to wait 10+ years for Chinese investors to get their funds. However, if you are already invested into a very large project, your rights may be limited per the partnership agreement you signed.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    You need to review the documents you signed with the Regional Center to see their commitment to create the required jobs and keep the project going until the I-829 is approved.

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    Mark AM Catam, Esq

    Immigration Attorney
    Answered on

    Generally, developers may return the capital once I-829 is filed (some projects require I-829 approval before capital is returned). The regional center need not redeploy your investment, however, this is something you would have to check with the regional center. You would need to go back to the offering documents and carefully review the provision regarding redeployment, and if your investment would not be subject to redeployment since you are not subject to visa backlog.

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