An important consideration for prospective EB-5 investors is deciding which method you will use to invest your funds. There are two paths: investing in a regional center project or operating your own business, known as direct investment. You should give careful consideration to determining what path of investment suits your lifestyle best.
Through years of helping clients navigate the EB-5 process, we have compiled a list of general characteristics of direct and regional center investors. We hope that this list will give you a better idea of the type of investment to choose. Please use it to determine which investment path is right for you.
Generally, direct investment is well suited for investors whose primary motivation for coming to the U.S. is to invest their money in either a new business or troubled business. A direct investment client is someone who enjoys creating and managing a business, someone who wants to have control over a business, and someone who wants to maximize profits and returns on his or her investment. It is interesting to note that investors in direct investment project are usually people with business acumen and who are able to supervise employees.
Some questions you might ask yourself:
- Is your primary goal of immigrating to take advantage of the favorable business environment of America, invest your money, and maximize profits?
- Have you successfully created and managed a business in the past?
- Are you comfortable speaking English and navigating the American legal environment?
If you answered yes to some of all of these questions, you could be well suited for the direct investment path.
Regional Center Projects
Regional center investors, on the other hand, are usually those whose primary focus is becoming a US permanent resident, and not necessarily starting their own business. Investing in a regional center project allows the investor to hand over the details of business operations to the Regional Center to take care of.
Regional Center Investment is popular among the following groups:
- Recent college graduates wanting to start a family in the US
- Those who already have businesses outside of the US and require that they remain geographically mobile
- Clients who do not have a strong command of the English language or U.S. laws
In our experience, the majority of clients usually opt to take the regional center path because of the flexibility and streamlining of the investment. When a person invests in a regional center, the regional center takes care of the business and job creating aspects. The regional center charges an administrative fee, and the client only has to deal with documenting the source and path of funds. This option is less troublesome for foreign investors, as they do not have to worry about running a business in a new country or having to figure out how to meet the direct job creation requirement on their own.
To see which route best suits your unique circumstances and lifestyle, contact our office for a free consultation. We can help you determine which investment path is best for your. Call Jatoi & de Kirby, APC today at 415-221-2345.