Jalsalmi

Hello, hope there are still EB-5 investors on this forum. My husband and I are thinking about investing in the EB-5. We are looking into Jay Peak and CMB. Has anyone got their initial investment returned? I am concerned that Jay Peak does not seem to have a clearly defined exit strategy. Your advice would be appreciated.

Thank you.

Duncan Roberts

I have no idea about either of those but my understanding of that visa is you should look at the investment as buying a visa and any money you get returned from the investment at any point in the future should be considered a bonus. Maybe I'm wrong but the general sense I get about that visa is you go in not expecting to get any money back.

civilservant

I agree with Duncan, we always advise anyone considering an EB-5 that they should look at the investment as 'buying' the right to live in the US, and to not expect any return on the investment nor the return of the capital sum.

Jalsalmi

Really that's how it works? The lawyers and Regional Offices do not explain it that way. They talk about exit strategies in 5 to 6 years. True their is no return expected. I know it is not secure like the Canadian investor program, but they market it as it is most likely that your capital will be returned.
Thanks for your views.

civilservant

Of course they do - would they get anyone to 'invest' if their business plan consist of them taking your money and you get nothing (other than a Green Card) in return?

Duncan Roberts

The few articles I've read about it basically say that because there are enough wealthy people that want to live in the US and the easiest/only way is to invest a lot of people set up projects so they can do it. However, the projects are things that are unable to get funding elsewhere for valid reasons so the investors often lose most or all their money, but they end up with a greencard. I guess it's a tradeoff that you have to decide the pros and cons of.

You also have to understand that lawyers working for the regional offices are not working in your best interests, they want to get investors. If you walked in and they told you you would need to drop half a million to the cause and likely get nothing back, they won't get many takers. They can talk exit strategies like it's a sure thing but when you start looking into things you'll probably find that there is nothing guaranteed.

Like I said, I don't know the ins and outs but this seems to be the overwhelming view I've seen and heard.

Jalsalmi

That is awful! I was hoping it was a way. The lottery has been closed as I understand by the new immigration law. My husband has a petition by his brother. His priority date is 2004. When we checked at the CVC it is still at initial review for six years it has not moved! Has that happened to anyone? Also has anyone noticed how in previous years the priority dates moved about one calendar year annually, but this past year it only moved a couple of months.
Do you think the processing speed will increase with the new immigration bill?
Thanks

civilservant

Since the new immigration bill has not passed, and is probably not all the likely too, I doubt anything will change. As for the priority dates, they can and do speed up and slow down.

Jalsalmi

Thank you civilservant. Do you know if the DV lottery is still open?

civilservant

Yes, despite the proposal in CIR to do away with it it is still running at present and is likely too for the foreseeable future.

Pulaski

Yes, very much so. Most investment schemes have multiple classes of investors including banks, hedge funds and other investment managers, as well as EB-5s. Guess which class of investor is the very last in line to get their money back?

A "green energy" business I know of in Washington state which is backed by an EB-5 scheme, and brags of being an investment that is "as good as solid gold", is currently building it's fourth "pilot" plant. I have no expectation that this new plant will move them any closer to profitable production. Needless to say the prospects for return of EB-5 investors' money, let alone "profits" is, er, .... not looking to be too good.

ian-mstm

It will take about 13 years for the priority date to become current... so, another few years. There will be no movement until his PD becomes current. Once the PD becomes current, he will get a notice and he will be invited to apply for a visa.

Ian

Jalsalmi

Why do you think it will take 13 years? The PD now is 2001. On average in the past it has moved one year every calendar year. So I would think 3 more years. Am I missing something?

Pulaski

You are both correct: Ian said " ... 13 years for the priority date to become current .... " which would be late 2016 or, as we are rapidly approaching the end of the year, 2017.

ian-mstm

I was counting from the PD... not from today - which is why I also said, "another few years".

Ian