The release of our new article “Economic Development & Immigration Clash in Washington” has received PR from all the leading news sites including CBS Market Watch.
You can download a copy of the full article from our website using this link.
Once you have had the conditions removed from your green cards (twenty one to twenty four months after your green cards are initially activated) through an I-829 petition you generally have to wait to cash in your investment – as a general rule of thumb it is unlikely to be less than five years from the date you initially invested funds.
Under the requirements of the EB-5 pilot program, Regional Centers are not allowed to guarantee the return of your investment – it has to be “at risk”.
The various regional center programs often refer to the return of the $500000 investment as the exit strategy. Some regional centers have a specific fixed term/date for the return of your investment others have more complex or sometimes ambiguous exit strategies, some are lost in a mass of legal jargon.
Importantly, some programs focus on countries where the investors primary concern is the visa, not the return of the $500000 – it is very important you are aware of the dangers of this strategy.
The vast majority of regional centers have not been operating long enough to be in position to return investments. One center plans to return substantial amounts later this year.
Please let me know if you would like to discuss this further.
Continuing my theme this week of “Good News” I am pleased to announce that we may, just may, have the start of a bottom in the housing market. Now don’t get too excited just yet, we still have some pain to go through but look at some of the news this week: Mortgage rates at a 20 year low. House prices rise for the first time in 12 months. Re-sales up, new home sales up. Can you see a pattern?
Q. Why is this important for anyone considering an EB-5 visa? A. Because if we are starting to emerge from the recession you may want to consider your timescale.
Take a look at this video.
An enormous opportunity to buy a home at an historically low price is just one of the considerations potential new immigrants are concerned about. Many potential clients are seeking advice on a decision of whether to buy a home now, before they arrive in the USA or wait until later. No one-size-fits-all answer to that questions but it does warrant a discussion of your personal goals. If you have any questions or comments about this or other EB-5 news, please let us know via this blog, Skype or Twitter.
Concern over housing losses and an attempt to stop home values declining have lead to a debate over an idea to have immigrants buy houses to gain a Green Card.
Last Thursday John Mauldin, president of Millennium Wave Advisers and author of the popular “Thoughts from the Frontline” e-letter floated an idea that, “give immigrants a pathway to citizenship if they buy a house”.
The report from Yahoo finance goes on to say:
The economic benefits of this concept are potentially powerful:
An inflow of foreign money into the U.S. economy, which will both boost the dollar and the economy because of related spending.
Help sop up the supply of excess homes on the market, which will help put a floor under prices and revive the construction industry, creating jobs.
Help shore up America’s middle class. This assumes most immigrants with the money to buy a home are educated, white-collar workers who can help do what immigrants have done throughout U.S. history – energize the country as they pursue the American dream.
“Mauldin doesn’t support giving financial incentives to immigrants or making citizenship automatic with a home purchase. We discussed whether this idea could ever fly politically. Mauldin believes that many Americans would welcome hard-working individuals into their neighborhoods to put a floor on their own housing prices and make the local economy thrive”.
You can watch the interview here:
My question to the media is:
”Why are we even discussing this program when we have a perfectly viable EB-5 investor visa program in place that is so under utilized?” A program that not only accomplishes the above goals but also CREATES JOBS FOR AMERICAN WORKERS while providing low-cost funds for infrastructure and other projects, a complete win-win for the U.S. Government and the American taxpayer.
Let’s not mess with the EB-5 program or any derivative of it that even considers the remote possibility of taking away the job creation element of the program. Our EB-5 program should be seen as an “Economic Development Program” first and an immigration program second. We are not going to win over any Washington support (it is not exactly overflowing from DC now) if we seek to remove the employment creation element of the EB-5 program.
A bit of a rant today but I feel so strongly that we need to utilize this outstanding program and we simply are not. First step on my agenda; let’s get a 5-year extension to the current EB-5 regional center program that will give wealthy foreigners the confidence to once again look at the USA as THE place to invest their money. Money we, the American taxpayer, can use to carryout some of those badly needed infrastructure projects the politicians are talking about each Sunday on Meet The Press and This Week.
Would like to hear what you have to say so please reply using this blog, Twitter or Skype.
Yesterday we looked at the views of Federal Reserve Chairman Ben Bernanke. Today we look at the views of Warren Buffet of Berkshire Hathaway. The reason I wanted to show these two clips immediately after one another is the startling similarities of views these two share. This is remarkable when you realize the two totally different positions they come from. It is this similarity that leaves me with the impression, that despite the rhetoric and bickering we hear from Washington DC, we do have at least the beginning of a consensus of where we are heading. Perhaps things are not as bad as the press would have us believe?
Is it important, as potential new immigrants to the U.S.A, to have an understanding of where the country is heading economically? We think so.
Take a look at the second video in our series, and send us your comments, thoughts and concerns via this blog, Twitter of Skype.
Tomorrow we will look at some radical proposals for an addition to the EB-5 visa program and how they could be a disaster for the future of the Regional Center program. Make sure you don’t miss tomorrow’s commentary by subscribing to this blog. (See top right hand corner of this page).
Many calls, messages and emails this week from potential EB-5 investors concerning the strength or otherwise of the U.S. economy and its potential effect on the future of the EB-5 visa.
It is important that potential EB-5 investors see exactly how they US economy can have an effect, positive or negative, on thier choice of Regional Center project.
As an immigrant myself, (I’ve been resident since 1991) who arrived in America during an economic downtown, I can say that this one is different. (Slight understatement there) What I can also say is that overwhelmingly, the American people, through history, have shown an amazing resilience to adversity. That said, we have a lot to put right. But then so does the rest of the world.
I do believe, that despite the current economic climate, and the bickering in Washington over A.I.G bonuses, we are just beginning to see the first signs that a bottom is in sight. But please don’t take my word for it. Below is the first video in a set of two (the second one out tomorrow) which show an amazing alignment of views from a) perhaps the worlds most powerful banker, chairman of the Federal Reserve Ben Bernanke and b) perhaps the worlds most prominent, long-term successful businessman Warren Buffet (second most welathy man in the USA) head of Berkshire Hathaway.
Take a look at the video from Federal Reserve Chairman Ben Bernanke (I assure you it’s worth your time) and note the specific points of light he sees. We will then compare these to the points that are raised by Warren Buffet in tomorrow’s video and you will see why I beleive the USA will lead the rest of the world out of this current downturn.
Feel free to contact us with comments and concerns using this blog, Twitter or Skype.
Among the issues that we come across when we are troubleshooting are advising parents how immigration will impact their children in terms of the initial move and then looking at the years ahead – how will their lifestyle work out in the USA when compared to their lifestyle in their current country of residence?
We have also advised parents who have remarried and wish to emigrate with children from their first marriage and need to make a court deposition concerning the welfare of the child, allowing the child to emigrate with them.
The areas that we have covered based on our experiences in advising thousands of families on the move include;
Why do you wish to move and critically, schooling and lifestyle benefits from the children’s perspective.
The practicalities of the move include timing for each step in the process.
The implications of areas to live and importantly schooling and the differences likely to be encountered with the US education system.
A key aspect is your choice of a visa which can have a critical impact on child welfare.
In worst cases scenarios there are the implications of children facing deportation due to issues with specific visas, which had not been taken into account at the application stage.
Do you need to consider the whole picture before such a major lifestyle move? – If you do, contact us at Which EB5
One of the earliest couples making an investment in return for a Green Card were Michael and Pamela Green.
Four years ago the couple were among the first to immigrate under the then revised EB-5 regional center program. The Greens bought into a retail project and received an annual return, they did not have to live in the area where they had invested.
For the first two years, their Green Cards had conditions related to maintaining the investment which have now been removed. Coming up to five years, they can seek citizenship if they wish.
They left to move permanently into the holiday home they bought in Florida, 12 years ago and sold two properties in the UK to move to their new home in a complex beside a golf course fairway. “There is a swimming pool, a fitness centre and the same amount of land but other people take care of it,” said Mr. Green. “I don’t have to cut the grass or clean the pool.”
He added: “We now enjoy a comfortable lifestyle, a very nice climate, with English-speaking people, and a low cost of living. The investment is a small amount to pay for that benefit.” “The sun shines through the window virtually every day.” Mr. Green, a 12-handicap golfer, and a former managing director of a car dealership, added: “The comparison in the cost of living is incredible”.
The couple have a son, a grandchild, and another grandchild on the way. “At my stage of life my family can come to me,” Mr. Green said.
David and Fran Hodgkinson retired from local government consultancy posts before relocating to the USA four years ago via the EB-5 visa pilot program. They spent several months thoroughly researching options and felt it was imperative they immigrate via a green card route rather than any temporary visa. They felt after stressful high pressure jobs, relaxation in the sun with their dogs was the key consideration rather than having to set up and maintain a business in The USA, which is a requirement of other visa options.
Fran had retained great memories of America after student days as a camp councilor with BUNAC and the thrill was reawakened on holidays to Florida, including Disney.
Having looked at a shortlist of property options in Florida, they chose a ranch style home with 6 acres of land in Myakka several miles outside Sarasota as the ideal move from their home in a small town. Having personally cleared their land of scrub to design their garden, they feel their Florida lifestyle has given them even more than they expected.
They have been very happy with their decision to immigrate via the regional center program. The conditions of their green cards have been removed (successful I-829) and they are coming up to the stage where they could apply for US citizenship. They feel their particular selection of regional center has worked well from an investment perspective.
For detailed help in choosing a regional center contact Which EB5
As the EB-5 regional centre pilot program has been a relatively underutilized visa option it really warrants closer examination particularly over a five year timeframe. On this basis I thought it would be interesting to look at the experiences of those brave pioneers who were among the first immigrant investor to use the program five years ago and have now been through the complete process. Some of the elements that need careful attention are:
• Choosing a center
• Successfully applying for the visa (I-526)
• Relocating to the USA
• Integration in the community
• Conditions removed from temporary Green Card after two years (I-829)
• Choice to become U.S. Citizen
• Position to have the original investment returned
Many regional center brochures are high on promises but upon further probing have not been operating long enough to give important actual real life examples.
Over the next few days we will look at the experiences of those who pioneered the EB-5 pilot program and see what lessons can be learnt.
WhichEB5.com, its owners and associates, do not function as attorneys or legal counsel and do not attempt to interpret immigration law and do not provide or offer legal advice or legal services or investment advice. Anyone considering an Investment based Visa should seek independent professional advice. The information on this site is intended to be general and should not be relied upon for any specific situation. Any reference to designated regional centers on this website is posted as reference material only. For legal advice, please contact one of our attorneys. Prior results do not guarantee a similar outcome. Results depend upon a variety of factors unique to each person.
