scrubbedexpat099

We are talking about the future, wife working outside the business is one route open

Pulaski

I wasn't.

I was hoping to get some clarification from our semi-house-trained attorney.

ottotheboar

There have been a few petitions and action groups over the years all resulting in nothing.

Tracey136

Hi Adicosuk

I've just joined britishexpats because my husband & I are currently in the process of the EB-5 system, I have read so much rubbish spouted on this website from people not in the process & not knowing what they are talking about so would like to give you an insight to my experience.

My husband & I filed our EB-5 application last October 2014 so we are currently 8 months in to a process I have become quite knowledgeable about. I do not represent any Regional Centre, I am a retired Met Police Inspector who is currently going through the EB-5 process so thought I would share my experience so far, whilst I wait & wait to get adjudicated in the I-526 stage to advance to the Visa stage.

We invested $500,000 in a TEA Project (Targeted Employment Area) if it is a TEA you need $500K not 1 million, the initial EB-5 filing process is for your investment to be adjudicated by USCIS, to ascertain that your funding is from legal gains, they deny a small percentage of petitions & I assume that they fail due to a lack of monetary paper trail or have not invested in a viable project. You can be gifted the $500,000 but have to pay any relevant tax on that.

Firstly my choice of EB-5 Regional Centre, I was looking at only 2 companies; American Life & CMB Export LLC, they were amongst the first so have a good track record and I had a contact with someone who had already gone through the process, he & another colleague had chosen American Life. After meeting a representative of American Life I was not impressed with their 'exit strategy', it is very important to us to get most of our investment back but is worth the 'risk' for the lifestyle we want. I met with the Vice President of CMB Kraig Schwigen at our Florida home & was impressed with a defined exit strategy to their projects.

Basically their projects are loans to developers for a 6 year period, there will be a syndicate of EB-5 petitioners like myself who add the $500K into a given project, the borrower pays interest on the loan & at the end of the loan the syndicate dissolves & monies paid back. A borrower cannot pay back before 42 months. Syndicate member funding is roughly 20-25% of the overall project so is not all dependent on EB-5 funding. Have a look at CMB's website for current projects. CMB – EB5 Visa

Besides your $500K loan you need to factor $50,000 subscription fee into your outgoings. This is typical of any Regional Centre, CMB & American Life charge this. ALL RC's are money making machines at the end of the day.

Also the below legal fees. I also intend to reside in Florida, as we have had a home their for 15 years. The Immigration Lawyer I use is based in Sarasota & experienced in EB-5 Immigration USA - U.S. Visa and Green Card Lawyer - EB-5 Green Card (Anthony Olsen)

I-526 petition
legal fee of $10,000
government fee of $1,500
administrative fee of $95
Fedex shipping fee deposit of $150

Consular processing of immigrant visas for you and your family members
legal fee of $3,000
government fees of $1,140
administrative fee of $95

I-829 petition for removal of conditions
legal fee of $5,000
government fees of $3,920
administrative fee of $95

Timeline
Sept 2014 $500,000 invested with CMB Export LLC in a TEA project
Oct 16th 2014 Papers officially received by USCIS
now just waitingggggggggggggggg I'll update when I have them,Visa process, medical, Embassy interview etc

Let me know if you have any questions, I am more than happy to advise anyone as I have had much advise from someone who has now had their I-829 conditions lifted, so it's good to get reliable info from those who have gone through the process.

Pulaski

Your post appears correct, legally and with respect to how the EB-5 process works, and you are thinking the right way -being concerned about the exit strategy. However I am concerned that you might be discounting the risk of the project not generating sufficient returns to repay the EB-5 "investors". As an EB-5 investor you are at the back of the line when it comes to being repaid, and it is perfectly possible for a project to be completed (built) and operate "successfully" without ever generating sufficient revenue to repay the EB-5 investors. I know of one project up in Washington or Oregon, that over twenty or so years built at least four "pilot plants" to recycle tyres into oil. None of the early investors saw any return whatsoever, I doubt those who funded the later plants did either.

scrubbedexpat099

It would be nice to see reports from those who have exited successfully, they never seem to come back.

Pulaski

Indeed. Tracy has started the process. It will be a number of years before she has "gone through the process".

sir_eccles

I'm curious, how is your investment "at risk" if they are guaranteeing repayment of the loan after six years. I didn't think such guarantees are allowed?

Tracey136

The investment must be at risk.
With CMB even though it is a loan to be paid back any borrower can default on the loan, as many companies have in recent years with the worlds financial crash, this is enough to be 'at risk' for USCIS CMB have never had a project turned down by USCIS.
Any Immigration Lawyer will give you free advice as they want to reel you in as a client

Tracey136

As I said in my post, the project I have invested in is a business LOAN, so you are not at the back of the queue as they face penalties in defaulting interest payments along the way & is 'at risk' because the borrower can default, although no borrowers have with CMB, research their website & projects, for anyone considering an EB-5 as the way forward contact CMB & American Life so you can compare the two.

At the end of the 6 years or when loan is paid off the syndicate members dissolves the partnership & monies distributed.

They are both amongst the very first reputable companies with a longstanding history with CMB.

Pulaski

You might want to look more into the priority of your "loan". In a typical EB-5 project there is some bank finance - loans from banks. They have first priority. Then there is some finance from pension funds and insurance companies, which have second priority. Then there are some investments by private investment funds or high net worth individuals, and they have third priority. Then there are hedge funds and high risk investors, and their loans are fourth priority. Then, at the back of the line are the EB-5 investors, their loans are last in line to be repaid, after all the other investors have received their loan back, and all the interest they are due.

I am not trying to rain on your parade, but that is how most EB-5 projects work. It'll be great if your loan performs as you believe it will; some do, many do not. It is all too common for the EB-5 investors to lose their investment, because even a small hiccough in the project, a small drop in the market, fewer customers, lower prices, a recession has the effect of reducing the overall revenue, and often insufficient funds to repay the EB-5 investors anything.

ian-mstm

What is your long-term goal; what do you expect to get out of this? A return on your investment? That plus interest? A green card? What?

Ian

John_K.

Look at my earlier posts for some real information from somebody that has gone through the whole process of EB-5 and who is now living the dream in Florida for over 4 years. We love our community, our children are happy and we did not have a hurricane for 10 years or so. In 9 months from now we will be able to apply for citizenship if we so wish.

You must be willing to put the USD 500.000 at risk otherwise don't do it. Personally, I do not know anybody who has their money back in full. We will learn about our own exit strategy probably next year but it is quite likely that it will be a process that will take many more years. In the mean time, we receive a modest annual yield.

There are a number of other posters on this forum who have gone the same route succesfully. A search of past forum threads on EB-5 will give you much more information than only this thread. With success I mean getting the unconditional greencards, not so much getting your money back on short notice.

Pulaski

Thank you.

Please keep us updated if you are comfortable doing so.

tht

A few firms to avoid....