If you choose to invest in an EB-5 investment program, then you are either coughing up some serious cash or things that are worth that much cash. An investment can cost as much as 1.8 million dollars or 800,000 dollars if you are investing in a targeted employment area, and you will need to invest in cash or in things like equipment, inventory, cash equivalents, and other tangible property that is worth that much.
While you will be building a sustainable and growing business that is capable of supporting 10 US jobs, as well as gaining visas for yourself and your family, you might still be asking what you need to do in order to gain your investment back. Will you get your money back as an EB-5 investor? And if so, how long will that take you?
How Does The Return On Investment Work For The Loan?
The return on investment often can’t be guaranteed, but also works in different ways depending on whether you invested with a Regional Center. A EB-5 Regional Center is a place where many investors can come together to pool their resources, and if you invest in there instead of doing a direct investment, then the business plan will follow an exit plan that allows the EB-5 investor to get their investment back with interest.
It will take a while, mostly depending on the project, but investors can expect to see their return on investment get done in about five to seven years. However, the entire investment will be at risk during this time, so there’s no guarantee when you invest in EB-5 projects.
Understand What The EB-5 Is For
People who are looking to gain a substantial return on their investment from their EB-5 investment might be a little disappointed to know that the return can’t be guaranteed and even if it is, you will get the loan at a moderate percentage compared to other loans. After all, the main purpose of investing with an EB-5 investment is to obtain a United States green card.
For many investors, a low earning project that will allow you to have a low immigration risk is much better than a higher earning project that has a greater immigration risk. Because the main purpose isn’t to make money, but to make sure that immigrants can invest in the country.
Getting a green card is going to be the biggest benefit for immigrants looking to live and work within the United States anyway, so even if you don’t make a high return on your investment, you will at least have that!
Make Sure You Know The Risks And Advantages Of Your Project
You will need to do a lot of research whenever you are creating an EB-5 investment project, even if you have the necessary cash or capital. Not only do you need to focus on whether the project can succeed in the U.S, but it also needs to be long term and supply 10 jobs for U.S citizens.
Like all other investments, EB-5 investments come with risks and rewards, and no project will guarantee a return on the investment. Making sure that you know what risks the project you are investing in will have before money changes hands can make sure that you make your investment with the best chance of success in mind.
Do Investors Make Their Money Back At All?
That being said, even if the return on investment is very low, you can make some money back. You will have a business that is bringing in some cash, and can also grow and be scaled over time. However, the amount of return that you make back is something that is going to depend on the size of your company and various other factors as well.
That’s why doing as much research as possible before you make your investment can be very helpful, because the more information you have, the more certain you can be that you are making a wise investment that will get you a green card. Not simply throwing money at something that won’t give you any return whenever you and your family finally move into the U.S!