+1-800-997-1228
Questions & Answers

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

  • Avatar

    Reza Rahbaran

    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.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

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

  • Avatar

    Fredrick W Voigtmann

    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.

  • Avatar

    Julia Roussinova

    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.

  • Avatar

    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

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

  • Avatar

    Salvatore Picataggio

    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.

  • Avatar

    Lynne Feldman

    Immigration Attorney
    Answered on

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

  • Avatar

    Philip H Teplen

    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.

  • Avatar

    Jinhee Wilde

    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.

  • Avatar

    Ed Beshara

    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.

  • Avatar

    Stephen Berman

    Immigration Attorney
    Answered on

    They generally and probably do not make any profit.

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.