What is the standard range of return for EB-5 investors in a project where the EB-5 capital is structured as preferred equity? - EB5Investors.com

What is the standard range of return for EB-5 investors in a project where the EB-5 capital is structured as preferred equity?

In projects where the capital from EB-5 investors is structured as a preferred equity investment, what is the average range of return for investors?

Answers

BoBi Ahn

BoBi Ahn

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

This would vary and there is no set standard or average here.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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

The issue of return has always been debatable as it depends on how a project eventually performs. The common return applicable to the majority of projects is between 1.5% to 2%. Also, do not take any common assumptions as the final words, instead read very well the subscription agreement of the company you are working with and conduct your due diligence to ensure you have all the information.

Ed Beshara

Ed Beshara

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

The rate of return varies from project to project, and therefore there is no uniform standard. A decision to invest in an EB-5 project should not be based solely upon a large rate of return but should be based upon the immigration and business viability of the project.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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

There really is no average rate of return. Often the rate of return is directly related to the risk so many advise that the focus should be on capital preservation for actual returns.

Salvatore Picataggio

Salvatore Picataggio

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

Anecdotally, equity can sometimes be higher than loans, but still, most are very very low. An EB-5 due diligence firm can be a huge help here.

Hassan Elkhalil

Hassan Elkhalil

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

The range of return depends on the projects.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

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

I do not believe a "standard'' exists. Projects are free to set up their deals any way they wish. Generally speaking, however, EB-5 deals do not offer great ROI and the ROI should be the last consideration for an EB-5 investor.

Phuong Le

Phuong Le

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

Four percent is not unusual, but there is no such thing as a standard return.

Lynne Feldman

Lynne Feldman

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

I do not think anyone has this statistic. You would need to contact each of the regional centers you are interested in and ask them. There are agents for hire that evaluate the various regional centers as well, and they may have some of this information.

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.