During the U.S. EB-5 Immigrant Investor Visa process for Indian investors, the most challenging aspect is where to invest. Having met and consulted with hundreds of potential EB-5 clients in India and Dubai in the last few years, the primary goals for most investors is of course Green Card and Return of Capital. There certainly exists two types of risks – immigration risk and investment risk. While EB-5 investments have to be “at-risk”, they don’t necessarily have to be highly ‘risky’ in nature. There are ways to determine the type of risk and quantum of risk and whether the risk is reasonable and/or acceptable in nature and whether the Regional Center project is a viable one and makes sense from a financial, regulatory (SEC) and U.S. immigration perspective.
Return on Investment
Anytime an investor focuses on ROI (Return On Investment) in terms of interest/capital gains on the principal amount of $500,000, I can almost say that they are going down the wrong path as just by the nature of these investments i.e. what should be low cost of capital to borrowers, EB-5’s aren’t designed to yield a high return and if they do then be prepared to take on a higher level of risk – to your capital and to your green card status. The biggest return is U.S. permanent residency and an investor should use that to open doors and live and work in the U.S. and put the green card status to work for them in terms of generating income and opportunities.
A Project’s returns
The right kind of EB-5 project generally has no or low (less than 1%) actual monetary return and therefore is not attractive to most investors but of course just because a project offers a low return it doesn’t mean it’s low risk but most low risk projects come with a low return. It is essential to take a balanced look at the overall picture. Having a realistic approach and reasonable expectations along with the right evaluation is the way to choose the right EB-5 regional center project. Getting an evaluation from a team of experts who conduct due diligence from a financial, regulatory and immigration perspective should be the preferred route. We at EB5 BRICS with access to a team of experienced U.S. EB-5 lawyers and SEC/FINRA licensed investment bankers who focus on EB-5 investments can provide you with the guidance and advise to make a fully-informed decision regarding this life-changing move.
Read more: Invest into a Hotel | Trump and Modi Effect
DISCLAIMER
The information within this post represents my opinions only. This information does not reflect the opinions and/or policies of NMS Capital Advisors, its affiliates or any other firm I am contractually employed.