Immigration Process: Investment Question
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INVESTMENT QUESTIONS
1. What investment options do I have for consideration with the Los Angeles Regional Center?
The American Dream Fund, LLC utilizes immigrant investor capital into projects throughout Los Angeles County that meet program criteria, including job creation in Targeted Employment Areas (TEA), to promote job growth. The Los Angeles Regional Center focuses on projects within five business sectors:
1. Hotel
2. Manufacturing
3. Retail Shopping Centers
4. Medical Office
5. Nursing Homes and Assisted Living Facility
2. What is a limited partnership?
A limited partnership combines corporate limited liability with partnership taxation. The limited partnership, formed by filing a charter with a state government, consists of a general partner and one or more limited partners. The charter details the rights and powers of the limited and general partners, percentages of ownership, and distributions of profits. The general partner manages the business.
The limited partners are passive investors liable only for the value of their investment. The limited partnership income is taxed at the partner level, not at the entity level.
3. How is my limited partner interest protected?
The Certificate of Limited Partnership must be recorded with the State of California as a public record. The Limited Partnership agreement lists the names and percentage interests of the limited partners. The deed for the investment property is held in the name of the limited partnership. The deed is also of public record. This means the property cannot be sold, mortgaged or altered without complying with the terms of the limited partnership agreement. ADF only works with experienced and established EB-5 partners and projects. We personally provide rigorous due diligence for each business. We work with the EB-5 business or project to plan aggressive and realistic financial goals and we secure our EB-5 investment with substantial collateral to ensure the safety of your investment. We have maintained an exceptional record of return to our investors and safety for our valued clients.
4. Is my investment guaranteed?
No. The law requires an "at risk" investment without guarantees or redemption rights.
5. What are my risks?
As in any investment there is a risk of total loss. By U.S. regulations, all funds must be put at risk. All investors are provided with sound references to permit independent verification of the information contained in the investment prospectus.
6. Should I consult my own financial advisor before investing?
Yes. The American Dream Fund, LLC urges prospective foreign investors to please consult their own financial advisors for advice on investing through this program.
7. Why must I invest before you will apply for my green card?
Investment companies and designated Regional Centers accept EB-5 investors by placing funds in an escrow account pending I-526 Petition approval. The funds may only be released upon approval of I-526 Petition unless otherwise agreed upon in the Offering Memorandum.
8. Can money gifted by a parent, other relative or business be used for an EB-5 investment?
Yes, provided that any applicable gift taxes are paid. It must be demonstrated that the gift is an actual arms length transaction and is a not a mere ruse or that the gifted funds will be given back after permanent resident status is granted.
9. Can several investors combine or “pool” their investment capital through one limited partnership?
The regulations specifically allow for pooling of funds by several investors to establish a limited partnership sufficient to qualify all participating investors. The only requirement is that each investor individually must qualify for the minimum at risk capital requirement and new job creation requirement.
10. What issues have been problematic in EB-5 cases?
The most common problem area has been insufficient documentation of the source of funds. Many people try to disclose the least possible information only to have the file returned with a request for further information. It is better to provide too much information rather than too little information. In this era of terror alerts, and suspicions about money laundering, USCIS case examiners require a well-documented source of funds.
11. Can I visit the project location?
Definitely! The American Dream Fund coordinates many visits for its interested investors. We welcome you to visit us, meet our staff at our office in Los Angeles and tour the latest EB-5 projects.
12. What is the rate of return on investment?
EB-5 Program regulations and USCIS rulings require all EB-5 investments be “at risk.” As outlined in the Confidential Investment Memorandum, each investment is specific to its risk reward analysis and pro forma analysis. While ADF cannot guarantee a specific rate of return, we believe it can achieve results consistent with or exceed those of other Regional Centers.
13. What exit strategies will ADF use to provide investor liquidity?
ADF structures our EB-5 investments to divest the investor and return the original principal balance after 5 years to the investor. The exact strategy used to exit each project investment will be determined on a project-by-project basis in order to provide the maximum financial and immigration benefit to our EB-5 investors.
Links to Additional Information Sources:
USCIS & General:
EB-5 & Regional Center:
