ASDZiva

Does anyone have experience of selling their investment in any American Life projects after all the visa and green card stuff is done and dusted?

scrubbedexpat099

I am pretty sure nobody has got that far.

Think of of it as buying a GC, any money back would be a bonus.

cranston

As Boiler says.

eb5s

Then, it is too expensive. I think at least there should be a plan for exit instead of nothing at all. If it is like that, no one will think it worthy.

christmasoompa

Holy thread resurrection Batman!

Pulaski

For you, maybe, not for others.

Many EB5 holders are probably still blissfully unaware that even the the return of their capital is unlikely, much less any profit.

ian-mstm

That's the choice that people make when they invest. It up to the individual to determine whether or not they "think it worthy".


Just because you think it's too expensive, it doesn't mean that others should think that also.


That's the chance you take when you invest.

Ian

civilservant

Then don't invest. Simple really.

eb5s

EB5 is really too high risky!!!

Bob

It's the cost of buying a greencard though.

ottotheboar

An element of risk is a requirement in the EB5 program.
In many EB5 projects you do not own any part of the project but are part of a separate entity which lends money to the project.

sir_eccles

Not just "an element of risk " my understanding is that it must be relatively high risk investments.

ian-mstm

If that's what you believe, then I suggest you don't invest. There's no need to keep going on about how risky it is. Other people don't believe what you believe... and it's their choice.

Ian

jxv73

The law says the investment must be "at risk" but nothing on the level of risk.

That said, how does a project end up in EB5? Because they have not been able to find investors through any of the usual channels (investment banking, venture capitalists, etc.). ANd that's probably becuase they are very risky projects to begin with.

Pulaski

That's not entirely true, because many of the EB5-financed projects, especially those engaged in some form of real estate development, including not only residential, commercial and industrial projects, but also hotel and resort projects, have multiple "tiers" of investors with different degrees of risk and security. So the bank investors probably have first mortgages over the land to secure loans with a specified interest rate, then there may be pension funds that have taken a risk/equity stake, then hedge funds expecting a higher return in exchange for more risk come next, and last in line come, ..... guess who?

Only the most stunningly successful projects generate the profits to pay the banks' interest and loan repayment, give profits to the pension fund investors (or similar), give the hedge funds their profit, AND leave enough "cake" to give anything to the EB5 investors. In short the deck is very stacked against the EB5 investors.

Foot note: Hedgefunds are usually the big risk takers in large and complex projects, making the riskiest investments with uncertain, but potentially large, profits and a significant risk of loss. It is telling that the EB5 investors are last in line, behind even the hedge funds.