What are the disadvantages of eb5 investment immigration in the United States, and what is the risk of investment immigration in the United States?

1. The project party lacks practical operation. Almost all investment projects are new projects and have no actual operating history. If an investment project has existed for many years and is still struggling to raise funds, it is either huge or difficult to sell. The project manager, that is, the managing partner, only exists because of the existence of the project. Because there is no actual operation, the project manager can only predict the prospect and performance of the project, and the actual data is only an analysis and forecast report. And as we all know, data and predictions are generally not completely in line with reality.

2. Profitability forecast. Because the project manager has no actual business history, it is natural that he can't take out data such as balance sheet or income statement to measure the profitability of the project. The prospectus made by the project manager provides a "reasonable" prediction of the project prospect. Although these forecasts can be used as a reference to measure the potential of the project, investors can't completely rely on these forecast data to evaluate the project.

3. Property right risk. At present, a considerable part of EB-5 investment projects are invested in real estate. This kind of limited partner investment naturally includes the risks brought by real estate investment, including: national or local economic turmoil; Excessive construction leads to oversupply of real estate; The attraction of real estate is reduced; Unemployment leads to the decrease of real estate demand, the increase of government tax revenue, policy changes, natural and man-made disasters and so on. However, no matter what factors, limited partners may delay the termination date of the contract. Some real estate projects repay investors through rent, which may reduce the rental income for various reasons, but the cost of maintaining real estate (maintenance and various taxes and fees) cannot be reduced much. Once the rental income decreases and the cost of advertising the rent increases, the limited partner may not receive any share of the rent. On the other hand, due to the rising cost, the project manager may face the situation of insufficient funds. In this case, the project may solve the problem by raising more funds, but for a single investor, the consequence of doing so is obviously to reduce the individual's share of income.

4. The future market value of the investment project. For a certain project, such as real estate project, no one can guarantee that the project will appreciate as scheduled. The fluctuation of investment project value depends on many factors, including the overall economic vitality of the location, changes in interest rates and tax rates, and so on. Once the limited partner's investment project needs additional funds, the project manager may need investors to make additional investments or borrow with existing investments as leverage. If the loan cannot be repaid for various reasons, the project manager may have to sell the property to repay the investor's loan.

5. Risk of return amount, tax risk. Take real estate as an example. Once the rental income decreases, investors may not be able to obtain the rental share. If your investment is obtained through borrowing, you can't expect to repay the loan through the profit of rent. Tax risks include the increase of tax rate.

6. Lack of legal constraints on managing partners. According to the law, the managing partner is the trustee of ordinary investors and is responsible for the management of investment projects. Under the existing laws and regulations, as long as the managing partner does not maliciously cause heavy losses, he does not need to bear legal responsibility for any losses.

7. Lack of actual management right of the project. EB-5 investors, as limited investors, cannot participate in the management of the project, nor can they veto the decision of the managing partner.

Many unpredictable factors, such as floods, earthquakes and other natural and man-made disasters, may cause losses to investment projects. And many factors cannot be insured. These losses are directly borne by investors.

9. Environmental risks. Real estate construction may lead to negative impact on the ecological environment. If you are required to clean up or eliminate this influence, you will incur additional expenses, resulting in a decline in profitability.

10. Potential conflict of interest. The manager of your investment project may have multiple investment projects, and similar projects may compete with each other. In this case, it will inevitably lead to conflicts of interest between various projects, which will directly affect EB-5 investors.