Answers to Common Complaints

March 1st, 2011 | No Comments

The reality of the EB-5 visa program is that not all regional centers are created equally.  There are many established and reputable regional centers that provide investors with great projects and well run processes.  But like business in general, not everyone runs their business as well or as ethically as they could.

More and more regional centers are qualifying for operation in the program and this creates a situation where there are many different levels of quality.  While the operate in a similar fashion, not all the regional centers use the same arrangements, agreements, and methods of business.  It is important to review each one when considering investment for eb-5 visas.

We do get a number of complaints though in certain areas and we can look at them here.

Complaint 1 – I Don’t have control over the project
Many investors feel like they lose control over the management of their project. This is true in almost every regional center project.  Investors usually become limited partners in a new venture created between the investors and the regional center.  Together, they create the new entity that either owns the project or lends money to another entity to complete the EB-5 visa project.  Investors do have a right to vote on major decisions, however, they do not have a right to manage the project.

Complaint 2 – I can’t get my money out after two years
The nature of the EB-5 visa program and investment projects requires that funds stay in the business for five years.  The business requires cash flows to operate the venture and to create and sustain the required number of jobs.  Also, some projects involve accepting investors during the actual business operation and in order for later investors to get their jobs, the venture must have enough money to keep the doors open.

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