Colinsrv

We are considering the EB 5 route and would like to hear from anyone who has successfully done this. We are looking to apply within the next 12 months and are looking for any advice - good, bad or indifferent.
Colin.

civilservant

Be prepared to lose your investment. The best way of looking at this is literally 'buying' a Green Card for your family - with no expectations of a return.

ian-mstm

Many people have "successfully done this". All you need to do is search the forum - there's a handy search feature near the top right of the main page.

Ian

notshipman

Agree with Ian all investments carry a level of risk some more so than others and that applys even to an EB5 one. So do the research find that one suits your level of risk and decide.

General principle low level of risk = low level of return but with an EB5 main thing is you get a GC so if you find something of that nature that probably the best one to go for!

fritz

I'm also looking into the Eb-5 route to get a GC.

Is 1)hiring a capable and professional immigration/eb-5 lawyer independent of any projects 2) asking him for some projects that he deems ideal/less risky 3)hiring "due intelligencer" to do more analysis on the projects the lawyer has recommended 4)get in touch with the project a good way to get started?

looking forward to your input!

Fritz

ian-mstm

I think a good way to get started is to make sure you are in a position to comfortably lose the entire $500,000 investment with no financial harm to yourself. There is no guarantee of return on your investment and you are, in effect, purchasing a green card.

That said, do not hire someone to do the research for you. Do it yourself. After you have done the research and are satisfied that you want to make the investment, then contact an attorney to handle any details you don't want to handle yourself. Let the attorney contact the project people.

Ian

md95065

Putting it slightly differently - if you are not capable and competent to do the research yourself you shouldn't be considering the investment. That doesn't mean that you can't get someone else that you trust to help gather the information but you need to be the person doing the final analysis and making your own informed decision.

Personally, I would not advise anyone to consider an EB-5 unless they were already at least somewhat experienced in making investments of a similar size.

fritz

Yes I do understand that EB-5 is a very risky biz and nobody would do them if the GC were not a possible attachment to it.

I feel like if that to be the criterion then at least 90% of the "investors" involved should quit. IMHO, most educated people (with a bachelor degree) cannot do a thorough and comprehensive (quantitatively) analysis on the projects, even for those who majored in economics/finance/math etc, since the projects are a very complex investment. I think it's fair to call most investors opportunists by giving faith on those regional center management people.

Nevertheless, since the current rate of investors eventually getting PGC is at a rate of 80%(not sure the exact number). It could be a fruitful gamble if played not stupidly, assuming PGC is the main goal. A fair good number of ppl investing in EB-5 have actually no clue of the project even. Risk is opportunity.

cranston

Been here over 4 years on an EB5 visa, have been invested for over 6 years.

All these schemes are crap and no risk does not equal opportunity. There are good risks and bad risk. All EB5 schemes are bad risks. However, some are less bad then others.

If you are not prepared to lose $550K (dont forget the $50K in legal fees etc) don't start.

If you have a specific question ask.

sir_eccles

It's kind of why EB5 exists, these schemes are so bad no one in their right mind would really invest. The only thing bringing in the money is the vague "promise" of a possible greencard.

The money invested must be "at risk" and the scheme cannot guarantee any return of principle or interest or anything.

civilservant

good advice from someone who's already done it

Steve_

I'm not aware of anyone who has actually lost their investment, but it's not uncommon to be in a situation where you can't easily get your money out of the investment without losing a fortune. Because you're buying x part of an office building say, and that is fairly illiquid so when you come to sell it you're only going to get the FMV for it which isn't going to be $500,000.

My advice is to not put it into a real estate based regional investment centre or anything that is obviously mad. Real estate because there's a good chance you will lose money, and mad stuff because it's mad.

The best performing one I'm aware of was: ccax.com but now there's a massive drought. So yeah, risky.

Also since Canada shut down the IIP the expectation is that the Chinese will move to EB-5 en masse so likely the quota will be exhausted.

Also the key word is: conditional permanent resident. You could do all this and get nothing.

cranston

Google New Orleans EB5 Regional Center.

What about a building with tenants and yielding 5 to 7% in a world with interest rates at zero, close to zero or even with negative interest rates??

Steve_

Google "Amlife EB-5 investors sue to get their money back" , probably a thread on here.

Logic tells me it's a bad idea, because real estate is illiquid and partial ownership of realty is even more illiquid, plus they're using your money to build an office building so it's almost certainly overvalued for what it is, plus overvalued real estate based on dodgy investments is what led to the current recession.

The FMV of what you're investing in isn't going to be $500,000 and it may well not get there for many years. And then you've got to try and find someone to buy it.

Obviously I'm generalizing, maybe there's some fantastic opportunity out there I'm not familiar with.

Steve_

Doesn't that prove my point? It's real estate. http://www.eb5insights.com/2012/03/2...gional-center/