JWesson

Does anybody have any experience of the EB-5 visa program which grants a conditional green card if $500,000 is invested in a designated regional center

Thanks

Ray

In most cases read designated regional center as somewhere you don't walk alone at night...or even the day in some case...The allotted visas available never get used up...

ben1970

I considered this, but there is no proof they actually work (I assume you have been offered the Seattle Property scheme).

You will probably get the initial conditional green card, but factually no-one has had the conditions removed and most people get sent 'home' whilst owning a 500K investment somewhere in US.

Politically it is seen as buying a green card. Which is what it is, but some people have a problem with this......

Face it America doesn't actually need any more millionaires....

ben1970

I should add that investing $1M in a new business that employs 10 people or $500K in a nasty area in a biz that expands for ten people to work in, will work (I am aware of successful cases).

However, they will check out where your money came from and this is not as easy as it sounds, and it has to be 1M cash. you can't generate profits from the biz and re-invest.

Basically this class of visa is fraught with difficulty (aren't they all) because of the political perception that you are buying a green card. You are looking at maybe 200 sucessful ones. There is a 5000 limit and it never ever gets anywhere near it.

1M into a new biz is possible though, but I wouldn't touch any of the regional center schemes....

The scheme was signed into law by Bush senior, and extended by Bush Junior. As only a few get passed each year they had an inquiry into why it wasn't working late last year.......err cos the immigration service (or whatever they are called this week) won't give the visas out........that's the reason they don't bloody work.

Don't expect it to change or get easier anytime soon.

Best way forward if you are still keen is come in on an E2 and then invest the mill in the biz etc and try to upgrade to an EB5 in my opinion

Jonathan McNeil Wong

ben1970 wrote:
    >>I considered this, but there is no proof they actually work (I assume
    >>you have been offered the Seattle Property scheme).
    >>You will probably get the initial conditional green card, but
    >>factually no-one has had the conditions removed and most people get
    >>sent 'home' whilst owning a 500K investment somewhere in US.
    >>Politically it is seen as buying a green card. Which is what it is,
    >>but some people have a problem with this......
    >>Face it America doesn't actually need any more millionaires....
    >
    >
    > I should add that investing $1M in a new business that employs 10 people
    > or $500K in a nasty area in a biz that expands for ten people to work
    > in, will work (I am aware of successful cases).
    >
    > However, they will check out where your money came from and this is not
    > as easy as it sounds, and it has to be 1M cash. you can't generate
    > profits from the biz and re-invest.
    >
    > Basically this class of visa is fraught with difficulty (aren't they
    > all) because of the political perception that you are buying a green
    > card. You are looking at maybe 200 sucessful ones. There is a 5000 limit
    > and it never ever gets anywhere near it.
    >
    > 1M into a new biz is possible though, but I wouldn't touch any of the
    > regional center schemes....
    >
    > The scheme was signed into law by Bush senior, and extended by Bush
    > Junior. As only a few get passed each year they had an inquiry into why
    > it wasn't working late last year.......err cos the immigration service
    > (or whatever they are called this week) won't give the visas
    > out........that's the reason they don't bloody work.
    >
    > Don't expect it to change or get easier anytime soon.
    >
    > Best way forward if you are still keen is come in on an E2 and
    > then invest the mill in the biz etc and try to upgrade to an EB5
    > in my opinion
    >

Three comments:

One reason many early ECs failed to pass the condition was because INS
changed the rules in the middle. The agency had issued early
administrative guidance suggesting that certain investment formats were
ok, then changed its mind. Immigration lawyers howled in protest, but
in a case called Matter of Izumii, the Board of Immigration Appeals said
that because the guidance was not a formal regulation, applicants could
not rely on it.

In terms of the lousy area, you don't have to live in the same place
where your money is invested.

The money really does have to be yours, and it has to be "at risk",
meaning you have to be at risk of losing it all. USCIS will ask for
documentation about where the money came from, but the purpose there is
to be sure that it isn't a disguised money laundering operation (at the
time of its enactment, certain features were written in disqualifying
money obtained from drug and criminal activities). The money does not
have to be cash. If you borrow $500,000 from a bank and invest it all,
that counts, so long as the investment isn't secured by the business.

This is the kind of case that needs a lawyer; don't try it on your own.

--
Above intended as general commentary, not specific legal
advice. Your mileage may vary.

================================================== =============
Jonathan McNeil Wong Voice: 510-451-0544
Donahue, Gallagher Woods LLP Facsimile: 510-832-1486
P.O. Box 12979 http://www.donahue.com
Oakland, CA 94604-2979 E-mail: [email protected]
================================================== =============

JWesson

Thanks for the info.

Yes it was the Seattle Scheme, did you look int this in any detail? It sounds as though you are none too impressed with the regional center/property investment route.

Also, do your comments on people being sent home relate to the current situation (i.e. post 2003) or the problems resulting from the INS interpretation of the rules which were overuled on appeal in the "Chang" case?

Thanks again for your feedback

ben1970

Well I think there are red flags on the seattle scheme. i.e. they don't want to be legally connected through their lawyer (who has reputedly been an immigration lawyer fior 20 years!) by actually putting in the immigration application.

So here you have a scheme set up by an immigration lawyer, but he doesn't want to put in your application for you because of a conflict of interest........well that smells funny to me. Seems like someone is covering their arse cos they know the application has a small chance of suceeding. I don't think they are crooks, more they are taking 500K of your money and you would want a reasonable guarantee of success - which they know they can't give. In fact they know there is probably a high chance of failure. As investment schemes go it isn't so bad, but I would put my money elsewhere to make more.....

Also when I finally managed to get a straight answer from the company about how many people had actually got their conditions removed it was.....wait for it........yes that's right........0

I have yet to see a scheme that actually works. I would dearly love to invest in one.

Again I repeat that I don't think these people are crooks, or even misselling - just read the small print and ASK THE RIGHT QUESTIONS

As schemes go this is better than most - you won't lose your money at least.

Sorry I know this isn't what you want to hear - it was the same for me. You can message me direct if you want.

Ingo Pakleppa

Before pursuing this strategy, TALK TO A LAWYER. While fundamentally a
good idea, there are some concerns related to the fact an E status
precludes immigration intent. You may find it difficult to renew the E
status, while still waiting for the GC. Another problem an potentially
be that the business needs to be *new* to qualify for EB-5.

ben1970 wrote:
    >
    > Best way forward if you are still keen is come in on an E2 and
    > then invest the mill in the biz etc and try to upgrade to an EB5
    > in my opinion
    >

Nigel brown

Hi I am currently looking at an EB-5 have an E2 at present which expires in a year have found a almond grove in California and the seattle scheme
any others you are aware of?

JWesson

No, I am having trouble identifying any others. I have, however, found a list of Designated Regional Centers which may be a good starting point (http://www.twmlaw.com/resources/immigrant/eb5.html) it is right at the bottom of the page.

Sorry I can't be of more help. Let me know how you get on.

hbooth

My name is Henry Liebman, I am the President of the company that runs the Seattle scheme. There is a regional center in Philadelphia called PDIC, theres another in Moses Lake, Washington called ASPI Group Int'l, there two devoted to dairy farmers in South Dakato and Iowa. I think thats about it.

hbooth

I am intimately familiar with the Seattle scheme, as Im the President of the company that manages the Seattle Regional Center. Its true America doesnt need more millionaires and there are always political issues around investment immigration. This is true for UK, Canada, Aussie, and New Zealand to name a few. Whats not true is that nobody has had their conditions removed and nobody was deported even during the worst of times between 1998 and 2003. Prior to 1998 there were about 600 Eb5s approved about two thirds of them had their conditions removed. In 1998 the government froze the program because people were not investing the required $500K. We started in 1997 which means most of our investors got caught in the freeze. We sued and finally in 2004 received a favorable response from the courts. Just last week the court ordered BCIS to adjudicate our pre 1998 files within six months. All of the investors invested $500k and have done so for about seven years. Im hopeful justice will be done. Not enough time has gone by for 2004 approvals to have condtions removed. Given the Court decisions adverse to BCIS Im hopeful that they wont trash the program again. In our case all of our investors made a profit and most of the pre 1998 investors are still investing with us. All of the approximately $300,000 in legal fees over 6 years were paid out of operating profit, no investor contributions were requested. Henry

hbooth

Im the President of the Seattle program. The reason we dont do the immigration legal work, even though Im an attorney and could do so, is to avoid a conflict of interest. In a sense we are coverning our arses because the ethical rules of the bar association are designed to promote the concept of independent counsel. We arent independent if we represent the investor and sell the investor a financial product. For this reason we give referrals to indendent attorneys so that the investor will have objective legal advice and be able to make an informed decision.

Removal of conditions is zero because two years havent passed since we received the first approvals in 2004. The pre 1998 saga is a different story, we have information about that on our website.

All of our investors, including myself have made money, we dont offer a get rich scheme, the investment vehicle is primarily designed for retirement pension plans and therefore maximizes income and preservation of capital. Henry

Jonathan McNeil Wong

JWesson wrote:
    >>Hi I am currently looking at an EB-5 have an E2 at present which
    >>expires in a year have found a almond grove in California and the
    >>seattle scheme
    >>any others you are aware of?
    >
    >
    > No, I am having trouble identifying any others. I have, however, found
    > a list of Designated Regional Centers which may be a good starting point
    > (http://www.twmlaw.com/resources/immigrant/eb5.html) it is right at the
    > bottom of the page.
    >
    > Sorry I can't be of more help. Let me know how you get on.
    >

The most current list I have:

World Trade Center/Greenville-Spartanburg Inc.
315 Old Boiling Springs Road
Greer, SC 29650

Beacon U.S. Studios Inc.
5610 Sanderling Way
Blaine, WA 98230

City of New Orleans
Mayor's Economic Development Department
1300 Perdido Street, Suite 8E10
New Orleans, LA 70112

North Country Alliance
One Lincoln Boulevard
Rouses Point, NY 12979

Aero-Space Port International Group
512 Strander Boulevard
Tukwila, WA 98188

North Texas Commission
P.O. Box 610246
DFW Airport, TX 75261

Legacy Project
1100 Spring Street, Suite 600
Atlanta, GA 30309

Abacus Advisors, Inc.
195 Boston Post Road
Weston, MA 02193

American Export Partners
10 State Street
Charleston, SC 29401

Danou Enterprises
World Trade Center Detroit/Windsor
1251 Fort Street Trenton, MI 48183

Pueblo Economic Development Corporation
P.O. Box 5807
Pueblo, CO 81002

GV Development
7525 W Highway 68
P.O. Box 10430
Golden Valley, AZ 86413-2430

Unibex Global Corporation
1201 Eleanor Avenue
Las Vegas, NV 89106

State of Hawaii, Department of Business,
Economic Development & Tourism
P.O. Box 2359
Honolulu, HI 96804

Atlanta International Center for Academic (sic) and Athletics
1131 Alpharetta Street
Roswell, GA 30075

The Gateway Freedom Fund (AKA: Golden Rainbow Freedom Fund)
18034 13th Street
Seattle, WA 98177

West Rand Gold Trust
P.O. Box 2222
Ridgecrest, CA 93556

Miami Chinese Community Center, Ltd.
331 NE 18th Street
Miami, Florida 33132

CKS Western Inc. World Trade Center
620 W. Graham Drive
Lake Elsinore, CA 92530

Empirical Entertainment
6255 Sunset Boulevard, Suite 2000
Hollywood, CA 90028

State of Vermont
Agency of Commerce and Community Development
109 State Street
Montpellier, Vermont 05609-0501

Trading Partners International of California LLC
2677 N. Main Street, Suite 930
Santa Ana, CA 92705

CMB Export LLC
Corona Professional Center
400 S. Ramona Avenue, Suite 212AA
Corona, CA 91719

Alameda Trade Center
c/o Lowe Enterprises Commercial Group
1818 East 7th Street, Suite 200
Los Angeles, CA 90021

Matrix International, LLC
P.O. Box 22891
Seattle, WA 98122

California Consortium for Agricultural Export
c/o Spencer Enterprises Inc.
4974 East Clinton, Suite 200
Fresno, CA 93727

--
Above intended as general commentary, not specific legal
advice. Your mileage may vary.

================================================== =============
Jonathan McNeil Wong Voice: 510-451-0544
Donahue Gallagher Woods LLP Facsimile: 510-832-1486
P.O. Box 12979 URL: http://www.donahue.com
Oakland, CA 94604-2979 E-mail: [email protected]
================================================== =============

Richard from ROC

My name is Richard Robinson from Robinson O'Connell in London. I specialise in advising on the EB-5 visa and have been assisting people with applications since Bush junior extended the program for 5 years from Dec 03. All of our clients have invested in Regional Centers, finding the 10 employee route too demanding. Many clients are looking to retire to the US and prefer a relatively passive investment.

From the outset it was up to investors to select a regional center and so far all have opted for the Seattle program. I have since visited and was impressed with the company, its people and the properties and last year I invested and am receiving a yield of over 5%. I also believe the area will benefit from two new rail links into the heart of SODO, which is where the properties are based. Seeing is believing and the renovation of existing buildings plus new builds evidences the area is attractive to edge of town retailers and other community businesses.

It's still early days but our first 10 applicants from the UK have had their visa petitions approved (step 1 of 3) and I learned today that our first applicant has been cleared by the national visa center (step 2) so we expect to be arranging an interview at the US embassy during the next few weeks. I've no reason to believe this will present a problem.

If you'd like an information pack on our EB-5 service, let me know.