What is meant by the requirement that the investor’s assets must be lawfully gained?
Can money gifted by a parent or other relative be used for an EB-5 investment?
Is EB-5 truly a passive investment?
What are the investor’s financial risks?
Will an investor’s funds be reimbursed if they do not get their green card?
Must every investor be an accredited investor?
How do I invest?
What is a limited partnership?
What is the rate of return on an EB-5 investment?

 

 

What is meant by the requirement that the investor’s assets must be lawfully gained?

Under USCIS regulations, the investor must demonstrate that his assets were gained in a lawful manner. This requires the investor to prove his investment funds were obtained through lawful business, salary, investments, property sales, inheritance, gift, loan, or other lawful means. As part of the I-526 phase of the EB-5 investment process each applicant will have to provide documentation showing that his or her investment funds are legally sourced and acquired.

back to top

 

 

Can money gifted by a parent or other relative be used for an EB-5 investment?

Yes, provided that any applicable gift taxes are paid. It must be demonstrated that the gift is an actual arms-length transaction and is a not a mere ruse or that the gifted funds will be given back after permanent resident status is granted. The parent, relative or other giver’s source of funds also must be lawfully gained, meaning that the giver will be asked to provide documentation showing that his or her funds are legally sourced and acquired.

back to top

 

 

Is EB-5 truly a passive investment?

No. EB-5 investors are required by USCIS to be actively involved in the management of the new commercial enterprise into which they invest their money. Involvements in the day-to-day operations of the enterprise or on issues of policy are both acceptable. In the Regional Center context, most investors take the role of Limited Partner, taking on rights, powers and responsibilities elaborated by the Uniform Limited Partnership Act (ULPA). In reality this means that the investor has minimal regular responsibility for managing their investment. This is the reason that EB-5 is often referred to as a passive investment.

back to top

 

 

What are the investor’s financial risks?

EB-5 investors are required by statute to place their investment funds at risk for the entire period of the petition. As with any investment the risks associated with an EB-5 investment vary widely depending on the project in which the investor places their funds. Generally speaking EB-5 investors risks include changing economic conditions, various risks associated with the ownership of real estate, statutory changes, and other risks associated with a private offering. Prospective investors should carefully read and seek consultation on the offering materials provided for a project before investing their capital.

back to top

 

 

Will an investor’s funds be reimbursed if they do not get their green card?

Yes, if an investor’s EB-5 petition is denied the principal investment will be returned.

back to top

 

 

Must every investor be an accredited investor?

Yes. The U.S. Securities and Exchange Commission requires investors to have a net worth of $1 million, $200,000 annual income for two years with the expectation to make the same amount in the current year, or $300,000 joint annual income for two years with the same expectation stated previously. You must be an accredited investor to review and invest various types of higher risk investments, including those offered by the New Fortune Global EB-5 Regional Center. To become an accredited investor you will need to fill out a Qualified Investor Questionnaire.

back to top

 

 

How do I invest?

You can begin the process of investing by completing the Preliminary Investor Questionnaire on our website. After completing this form you will receive more information about making an investment in the New Fortune Global EB-5 Regional Center.

back to top

  

 

What is a limited partnership?

A limited partnership is a type of business organization in which one or more General Partners and one or more Limited Partners form the ownership of the enterprise. General Partners are tasked with the management of the enterprise including the assumption of debts, and obligations, binding the company etc. Limited Partners, much like shareholders enjoy return on their investments, but are only liable to the extent of the nature and quantity of their original investment. The exact terms of each limited partnership can differ.

back to top

 

 

What is the rate of return on an EB-5 investment

This type of information is available in a Confidential Offering Memorandum specific to each different project. While the New Fortune Global EB-5 Regional Center cannot guarantee a certain rate of return we believe that returns on our investments will be competitive with those of other Regional Centers.

back to top