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?
This would vary and there is no set standard or average here.
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.
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.
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.
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.
The range of return depends on the projects.
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.
Four percent is not unusual, but there is no such thing as a standard return.
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.
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