What is a typical EB-5 investment lock-in period? - EB5Investors.com

What is a typical EB-5 investment lock-in period?

For how many years is the EB-5 investment money typically locked? I know it depends on the project performance, but how common is it for investors to get returns on investments? If the project performs well, then do they pay investors a share of the profit from the project?

Answers

Dennis Tristani

Dennis Tristani

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Answered on

This is entirely dependent on the project you invest in. Most projects lend or invest EB-5 funds with a developer that is creating jobs - the loan or investment contract will be for a specific time period. You will not be eligible to receive a return of your funds until the regional center receives repayment of its loan or investment. In terms of return on investment, this is also dependent on the specific project.

Phuong Le

Phuong Le

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Answered on

This is a loaded question, but ultimately it comes down to what type of investment did you make. It is all equity but if you chose an EB-5 loan, your return is very much capped (which you agreed to in exchange for theoretically a lower risk investment). If your investment was preferred equity, then you would get a higher return but it still would not be profit sharing. Unless you are true equity (which almost no investor wants), you are not going to get profit sharing. Lock-in period? Generally, it should be 5+ years or else it does not make much financial sense for the people raising EB-5 money.

Lynne Feldman

Lynne Feldman

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Answered on

Varies considerably by Regional Center but many return monies or offer to after the I-829s for that part of the project are all approved.

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