EB5 Investors in Search

by a searcher

4 years ago

Does anyone here have any experience merging EB5 investment into a search fund? To me it seems like a very reasonable path. Foreign investors primarily looking for "safe" investment to come to the US; search fund looking to acquire and grow the business (adding the required employees according to the EB5 system). 

If any Brazilian capital would like to fund a retired Army Ranger for an acquisition let me know;)

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searcher from University of Kentucky

Hello Wesley: You will find that it is easy to satisfy the letter of the law for EB5 requirements. However, it is the investor preference that might be a greater hurdle -- most investors prefer a "safe" investment, and to them, CRE is the safe investment and not an investment in an operating business. Further, if USIS denies the immigration petition, the invested capital has to be returned to the investor, if demanded, which might be a problem with an operating company but not in CRE (another investor preference: EB-5 investors prefer getting "income" on their investment). There are legal issues to contend with including applying for EB5 on behalf of the investor, family, etc; the supporting investment documentation that needs to accompany the application, etc.

I also looked into forming a regional center, but the licensing, legal, and marketing expenses were not justifiable (at least to me) to warrant such action.

More than happy to share more if there is interest.

All the best. Regards, Madan.

4 years ago | like reply | 2 likes

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