Eb 5 Visa:
A Regional Center is basically a private company. It’s involved in the promotion of economic growth, job creation, and capital investment into the U.S. economy. So, generally speaking, a Regional Center is usually a private company. There’s a lot of information on the internet where it might indicate otherwise that perhaps a Regional Center is perhaps a public/private company, public/private partnership, but it is generally not owned by a public entity or a governmental entity. So one has to be sort of cognisant of the fact that a Regional Center is an economic entity which is a private company that is involved in raising capital for EB-5 projects.
There are about 800 approved Regional Centers in the country and any given day, those 800 Regional Centers in the country will likely have, I would say about 600 odd EB-5 projects in the market, no two projects tend to be the same, each project carries its own degree of risk: there are low risk projects, there are medium risk projects, and there are high risk projects. And I’ll shortly go into those factors as well. Most Regional Center projects that you’ll see in the market tend to be low – or no-return. When I say low – or no-return, I’m really talking about perhaps a 1% return on investment, perhaps %0.5 return; I’ve seen it up to 5-6% generally but there are projects in the market that might promise or project 7-8% return. Just sort of remember the rule of thumb that I like to follow is, the higher the risk, the higher the return may be. So you do have to be careful about that. And, hence, you should think about engaging professionals to help you make a fully informed decision when it comes to Regional Center Investment.
View Complete video here:
When we look at a Regional Center Investment, what are the various factors that one should take into account? Or how does one go about selecting a Regional Center Investment? One, I said that you should definitely take advice from a financial or investment advisor because you are putting at least $500,000 at risk and perhaps if you’re taking the $1 million route than you’re putting $1 million at risk for the next 5-6 years.
Now, again, that’s not the only factor one should look in terms of deciding what Regional Center Investment they’re going to put their $500,000 investment into but it’s one of the factors because at the end of the day it’s really not the Regional Center that’s returning the investors money, it’s the developer, who’s the borrower of that $500,000 along with funds from other investors that is going to be signing that loan agreement and saying, you know, he or she will return say $10 million or $20 million from 40 EB-5 Investors in 5-6 years. Yes, one should look at the Regional Center track record but at the same time it’s really the developer or the borrower that one should be really, really, looking at and seeing whether they have the capacity to return that capital and how they’re going to go about returning that capital when it comes due.
Regulatory compliance: In the U.S., there are two agencies that oversee a lot of capital raising, one is the Securities and Exchange Commision and one is the FINRA – Financial Industry Regulatory Authority. More and more, these two agencies are taking a very close look at the EB-5 program, and there’s quite a few Regional Centers in the country, now that are embracing the fact that the SEC and FINRA are asking them to be compliant with securities laws of the U.S. and hence, they are engaging securities broker dealers in the U.S. to help them raise this kind of capital. And of course there are Regional Centers in the country that don’t think that they need to comply with SEC and FINRA because they are what you call exempt securities. Again, without going into too much about the technicalities of what’s an exempt security and what’s not, because it really depends on who you ask.
The economist report: it is related to the Job Creation model; the immigration compliant business plan is closely tied to the Job Creation model. So, all of these things are things one should be looking at when making a decision as to which particular Regional Center they should be investing in.
See our other Videos:
Our Youtube Channel:
source