Can you get back the money you invested via EB5 for 100%?The 500k I mean,not bothered about the interest as I know it's trivial

Asked about 2 years ago - Menlo Park, CA

Hi All,
I was wondering if there is any way to secure that you get back your 500k regardless of the success of the business, because in most cases this businesses you invest in are in rural areas and maybe with a very trivial return...I just want to know if you can secure your 500k? Also I heard that there is a rule that if you buy a house worth more than 500k you can get permit to live in the US as long as you own the house??? Is it true? Does it have any nationality constraints?

Attorney answers (5)

  1. Giacomo Jacques Behar

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . Have you ever heard of "capitalism"? Is there anything "guaranteed" under that? Am sure that even in (red) China there are no guarantees or assurances as to the success (or failure) of a privately owned/managed business entreprise. Same principle applies to the EB-5 investment: invest at your own risk! No guarantees whatsoever that the business you invested in will still be up and running 4-5 years from now..

    As to the "$500K house purchase" story, it was merely a "trial baloon" floated. Never went into effect, nor do I think it ever will.

    Behar Intl. Counsel 619.234.5962 Kindly be advised that the answer above is only general in nature cannot be... more
  2. J Charles Ferrari

    Contributor Level 20

    3

    Lawyers agree

    Answered . To qualify for EB5, the investment must be at risk. No, you cannot qualify for EB5 just by buying a house.

    J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not... more
  3. Robert West

    Contributor Level 20

    2

    Lawyers agree

    Answered . There are programs that offer a buyback at the end of the process. The house rumor is not true.

  4. Alena Shautsova

    Pro

    Contributor Level 20

    Answered . When you apply for EB5, the condition is basically that you are prepared to lose the money. I can imagine, that through some financial institutions you can try to safeguard your investment. The house story: I 've heard it recently couple times. NO, YOU CANNOT get a visa or a green card by buying a house. There is no basis for it in law, yet.

    This advice does not create an attorney client relationship. No specific legal advice may be offered by the lawyer... more
  5. Robert V Cornish Jr.

    Contributor Level 16

    2

    Lawyers agree

    Answered . Your money is at risk as in any investment in EB5 deals. Nonetheless, there is a very slim (if not virtually non-existent) market out there that might be willing to engage in some form of swap on the income flowing from your investment. But such a swap would be VERY expensive to the point where you would essentially be hedging your position with your own funds. But there are firms out there willing to swap or hedge just about anything for the right price.

    The foregoing is not legal advice nor is it in any manner whatsoever meant to create or impute an attorney/client... more

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