Investments can generally fit into one of three models; Steady Regular Return, Long Term Reward or US Green Card eligible. Each has it's own set of merits as described below.
1) STEADY REGULAR RETURN - Typically an investment in a Restaurant, or similar, where the NET profits are fairly high from the beginning which allows the investor to recover the principle investment back relatively quickly but with a lesser payout post equity return.
2) LONG TERM REWARD - Typically a Real Estate Investment like an Office Complex where intitial returns are low but the rewards are higher on maturity of the business.
3) GREEN CARD ELIGABLE BUSINESS - Strategy is modelled as below which could be a mix of different businesses to meet the stringent requirements. Running costs are higher too but achieves full US Citizenship for investor and family whilst still yielding returns. This is covered in more detail on the EB-5 Business page.
The diagram above explains the strategy we adoptfor an EB-5 investment to return the investors equity while still generating an income from the total equity invested. The timeline is as follows:
1) The investor puts funds into the business via the Investment Manger.
2) Once the business is set up, it starts generating income. From the GROSS income, a preferred return on the outstanding equity is paid to the investor first.
3) From the NET profit, a proportion is paid pro-rata in favor of the investor (building up his/her equity pot) and the remainder retained by the Investment Manger.
4) Once the investors entire equity has been returned via the Equity Pot, the investor will have received a Green Card and the process is complete. The investor may re-invest into the business again but as a 'regular' investor.
Therefore, the strategy delivers the unique benefit for the investor to receive the full principle amount invested back, accumalate interest and ultimately gain a Green Card and Visa to remain in the USA.
Investment in new and existing private businesses carries high risks as well as the possibility of high rewards.
The foregoing information is not an offer to sell, or an invitation to subscribe for, or the solicitation of an offer to buy or subscribe for securities of any company. The information presented is intended only to present general information to gauge the interest of qualified individuals in participating in a business relationship as described. An offer to sell, an invitation to subscribe for, or the solicitation of an offer to buy or subscribe for any security will only be made in formal documents to be provided to qualified potential investors.