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How is the return and profits of my EB-5 investment distributed?

I talked with an EB-5 regional center and they told me that if I invest now I will be able to get the return and profits of my investment in six years. I am wondering what the common mechanism of distributing the money would be? Monthly? Quarterly? Semi-annually or annually? Will I able to get the money back after six years even if my I-829 is still pending?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The funds usually are distributed at one time, as a lump-sum payment. If your I-829 is still pending, you cannot get the funds back. You will have to wait for I-829 approval.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    The return and profit distribution arrangements vary, depending on what was discussed , negotiated and agreed upon at the time you invested in the project. It is critical that you fully understand and are comfortable with these elements, especially the exit strategy. Return of initial capital while the I-829 is pending may also be subject to the terms you agreed upon.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Each project has the right to do this any way they see fit and you agree. Most have some type of small annual dividend.

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    Barbara Suri

    Immigration Attorney
    Answered on

    The return and profits distribution from your EB-5 investment should be spelled out in your contract with the regional center.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    These are excellent questions, and the answer will vary, depending on the individual project. Moreover, I recommend you not only get answers to these questions, but that you verify they are accurately stated in writing in the legal documents. Yes, the money can be returned after the I-829 is filed.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    The timing of the distributions will depend on the practice of the regional center. USCIS allows return of the principal to the EB-5 investor after the investor has filed the I-829 petition. However, the regional center may choose to not return the principal until the investor has an approved I-829 petition.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    You should not receive the distribution of your principal investment until your I-829 is approved. Distribution of interest or profit income could be done as long as the principal investment is intact, at risk and it is not noted as guaranteed income or some other prohibited term that may be seen as a redemption.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is no standard mechanism for the EB-5 industry on investment distribution. In order to get the most current information with a regional center you are dealing with, look at the terms of the agreement before you signed it. As such, consult an attorney to go over your agreement to make sure your interest is protected.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    When you invest in EB-5 you are generally becoming a limited partner. When and how you will get your capital and interest are controlled by the terms of the documents you signed. On the return of your investment funds, this will generally occur after your I-829 is approved. However, USCIS has recently given guidance on cases where the I-829 is pending more than two years, wherein you can receive a return of your capital despite the fact that your I-829 has not yet been approved. I recommend you consult with your investment immigration attorney for guidance on this question.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    ROI is usually a balloon payment at the loan's maturity date. You cannot receive your investment capital if the I829 is pending.

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    Blake Harrison

    Immigration Attorney
    Answered on

    Generally, you would receive annual interest payments. The investment amount would be returned after you receive your permanent green card, assuming the project is successful.

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    Charles Foster

    Immigration Attorney
    Answered on

    In terms of the return and profit from your EB-5 investment and how same is distributed, it would depend upon the terms of your investment. Those terms should be set forth in the private placement memorandum and they vary from one EB-5 regional center project to another. In terms of whether it is monthly, quarterly or semiannually, again, that depends on the terms of your agreement at the time of your investment. Whether you get your money back within six years will depend upon the soundness of the investment, but typically if you have already filed your I-829 petition to remove conditions, even if it still pending, you would be able to recoup your funds.

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