What are the expected returns for investors? - EB5Investors.com

What are the expected returns for investors?

I was wondering what percentage investors are typically expecting as a typical rate of return on their investments? Also, is it straight line interest, expressed as a percentage of equity of the project, or a preferred return? Do most EB-5 projects generally make a profit for their investors?

Answers

Reza Rahbaran

Reza Rahbaran

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Many projects provide a rate of return. Rates vary from project to project. Remember that your investment is at risk; therefore, no guarantees can be given.

Shahzad Q Qadri

Shahzad Q Qadri

RC Creators
Answered on

The expected return varies from project to project. You will need to review the prospectus of the investment.

Fredrick W Voigtmann

Fredrick W Voigtmann

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

First, by law any return cannot be guaranteed. Aside from that, there are as many possible rates of return as there are EB-5 projects. Some projects are set up as pure equity investments, while others have loans that typically bear low interest and have repayment due in five years. Some EB-5 projects have lost money, others have earned a nice profit. That is why the up-front due diligence, as with any investment, is so important. The investor must also understand that the approval of the green card (and the removal of condition) is part of the return on investment, so accepting a lower financial return in a good project is better than risking too much in terms of immigration risk in exchange for a higher rate of return.

Julia Roussinova

Julia Roussinova

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

This depends on whether a project is equity based versus loan based. Most loan based are about 1-2% and equity generally will depend on profits of the business. Returns may not be guaranteed because EB-5 investment must be at risk.

Philip H Teplen

Philip H Teplen

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Generally, most deals are structures as 5 year debt instruments with an equity conversion option. The return is normally in the 5% area. I will be happy to consult further.

Lynne Feldman

Lynne Feldman

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Many do provide a rate of return, but it cannot be guaranteed.

Salvatore Picataggio

Salvatore Picataggio

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Apologies for the lawyer answer, but it all depends! Regional centers and projects will offer a variety of returns and percentages. From a business/investment view, it is best to review an EB-5 investment opportunity with a corporate attorney or financial planner, as coordinated by qualified EB-5 counsel (like our law firm) to review the U.S. immigration consequences of any investment.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

There are neither fixed or expected returns for EB-5 investors.

Jinhee Wilde

Jinhee Wilde

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

The return on investment depends on how the project was set upequity vs. loan, etc. There is no guarantee of return on investment, as the EB-5 investment like all the investments are supposed to be "at risk." I have seen some regional centers and businesses use this provision to not disclose what the return you could expect may be, but most of the reputable businesses and regional centers will tell you what they expect to have as return, although not guaranteed. Most of the loan-based projects are paying about 1 percent and equity-based projects will depend on the profits the project will make.

Ed Beshara

Ed Beshara

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

Most EB-5 Regional Center projects follow the loan model. The interest on the repayment of the loan from the job creating entity to the new commercial enterprise is usually at a very low interest rate and this is probably acceptable, as the main goal of the investor is to obtain the conditional permanent residency status as soon as possible.

Stephen Berman

Stephen Berman

Find an EB-5 Visa Lawyer: Immigration Attorney
Answered on

They generally and probably do not make any profit.

DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.