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Who pays back an EB-5 investor in a regional center project?

If I am an EB-5 investor in a regional center project, when can I get my invested money back? Would the developer or the regional center be the one paying me back? Or I will never see this money again?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    In an EB-5 regional center loan model project the job creating entity will pay the loan back. Then the investor can sell their interest at fair market value.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You can exit an investment after you receive full, lawful permanent residency (that is, after I-829 approval). You can sell your interest in the investment entity at fair market value or receive a distribution proportional to your ownership interest in the entity. Any promise made to simply return all investment funds is an impermissible redemption agreement and subject to denial.

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    John J Downey

    Immigration Attorney
    Answered on

    Usually the developer of the project will provide you with an exit strategy. This must be in written form and made part of the documents. There can be no guarantee of return of funds.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you choose well, the money should be returned within five to seven years. However, it is critical to carefully select your lawyer and the project.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Normally, the structure of the investment through the regional center is that the regional center will gather the investors and bundle the investments in a Limited Partnership (LLP) to lend/invest into a project being developed by a developer. The regional center will be the General Partner of the LLP and assumes all of the administrative duties of the LLP, including quarterly or annual reporting of the investment to you. If it is set up correctly, the developer will pay the regional center as the General Partner of that LLP and then they will in turn pay you back. If you have invested in a reputable regional center with great track records, including a track record of paying back the investor, you should be able to get your investment back as long as the investment had a clear exit strategy. If the investment was in an equity-based investment, you may not get your principal investment back, but may receive an annual investment return as long as the project/business continues to operate successfully.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    There is no guarantee on getting your money back. As you negotiate with each regional center, you need to ask about their "exit strategy" and expected rate of return during the project.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You should review the offering documentation of a particular project in which you plan to invest, such as a private placement memorandum, limited partnership agreement, or subscription agreement. These documents should contain the terms of how your capital contribution (EB-5 investment) will be repaid to you. Generally, funds may not be returned until your I-829 is approved.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    Generally you will be investing in a Limited Partnership that will loan money to a developer. The developer will repay the Limited Partnership who will in turn return investment capital to the individual investor.

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    Robert Cornish

    Securities Attorney
    Answered on

    The entity in which you have invested would return the money, which would likely be a Partnership with the regional center or an affiliate acting as its General Partner. All of this will depend on the terms of the deal you are involved with, the operating documents and PPM, as well as the nature of the investment itself.

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