Is EB5 investment by American immigrants a worthwhile project?

Hello, American EB-5 investment is risky. If you really want to choose an American immigration project, please be sure to consider the project side and pay attention to the strength background of the developer. There are many large projects in the market (large capital investment, many places and long construction period) and some small projects. As an EB-5 investor, which is better?

As an investor, we must first understand what all parties involved in EB5 do. First, investors pay the bill. Immigration intermediary is a bridge between investors and American EB-5 project or regional center. The regional center and EB-5 fund are fundraisers. They raise funds and then invest (lend) them to collect project management fees. Immigration lawyers send materials to investors, and their income is legal fees. The project party will use the project money to create jobs.

Regarding the explanation of GP and LP, the limited partnership is the fund company of the invested project. Definition of limited partnership: A limited partnership is an enterprise with two owners, namely general partner (GP) and limited partner (LP). General Partner (GP) is usually responsible for the day-to-day management of an enterprise and plays an important role in the enterprise. They also have most decision-making power and bear the responsibility of the enterprise. This means that when the enterprise goes bankrupt or has legal problems, they are personally responsible for all corporate debts. On the contrary, limited partners (LP) have less decision-making power and fewer obligations. Limited partners do not play an active role in enterprises. For example, a limited partner cannot conduct any business transactions on behalf of a limited partnership. This restriction also protects limited partners from liability risks. They are only responsible for their own investment in the enterprise and will not be forced to use their own assets to repay corporate debts. Although limited partners (LP) do not retain control over how their investment funds are allocated, compared with general partners (GP), their roles are less work and responsibilities, and at the same time, they provide very valuable legal protection.

Simply put, the relationship between them is that LP(EB-5 investor) and GP (regional center person) set up NCE (project fund company) to invest in JCE(EB-5 project) to create employment opportunities and realize EB-5' s immigration purpose. NCE is the issuer of securities and the entity invested by investors. Capital investment, and then loan to JCE. Each such entity must prepare documents to raise EB-5 funds. ? ?

EB-5 investors want to be eligible to get green cards for themselves and/or their families, make wise investments, and return the investment principal at the end of the specified period. Most EB-5 investors are not interested in starting or managing enterprises in the United States for a long time. They prefer "passive" investment strategy, while still meeting the requirements of "active management" stipulated in EB-5 project. In addition, the limited partnership allows EB-5 investors to withdraw their funds without damaging the legal status of the partnership. Once the prescribed investment period has passed, investors can leave the partnership once they get an unconditional green card, which is usually the ultimate goal of most EB-5 applicants. EB-5 is a venture capital. As we all know, if we can see the selected projects more thoroughly, the risks are relatively controllable. It's not that investors can't bear certain investment risks, but that investors don't know how much risks they will bear in the future. The fund you mentioned is actually set up by the regional center for a specific project. The fund collects investment funds from investors and transfers them to project implementers.

That is to say, the regional center is a company that collects the project issuance fee and the income from the investment made by the fund company (usually LP) established for a specific project. The regional center is similar to the business scope in the business license of domestic companies. This business scope allows EB-5 projects, which is equivalent to a qualification. The actual project recruitment operation is carried out through the fund company of the project.

You don't have to worry too much about how the regional center (a) and the project fund company (b) distribute profits as different subjects. In fact, A+B can be profitable, and the project can generate qualified employment and return the principal. Try to choose such a project. The function of the regional center is only to set up EB-5 fund, so his income should come from the income distribution of the fund he set up. The regional center belongs to a qualification, or the license plate may be easier to understand, and setting up EB-5 fund is only one of its functions. As for the income, it needs to be realized and distributed through established fund projects. To put it bluntly, the regional center earns EB5 loan interest, so now many developers set up their own regional centers, which can save a lot of costs.

Hope to adopt thank you! Our skilled immigrants in Canada are RMB 300,000, and there is no charge for failure! !