According to Charles Oppenheim, the Chief of Visa Controls and Reporting Division at the U.S. Department of State spoke at a recent IIUSA conference in Washington D.C., if the current growth trajectory continues for Chinese EB-5 investors investing in the EB-5 regional center programs, he anticipates that the issuance of Green Cards to Chinese investors will be suspended in the second half of 2013.
On a side note, the Chinese are the leading source of overseas students in the United States and only looks to increase. Besides receiving a green card, many EB-5 investors coming from this region are not only looking at colleges for their children, but more and more are looking to leave China to get their children in grammar schools in the United States.
(Great article in USA Today: http://www.usatoday.com/story/news/world/2012/11/14/china-leadership/1704551/)
Here’s how the Visa Bulletin For December 2012 from the Department of State explains it:
The following advisory is based strictly on the current demand situation. Since demand patterns can (and sometimes do) change over time, this should be considered a worst case scenario at this point.
It appears likely that a cut-off date will need to be established for the China Employment Fifth preference category at some point during second half of fiscal year 2013 [i.e., April to September 2013]. Such action would be delayed as long as possible, since while number use may be excessive over a 1 to 5 month period, it could average out to an acceptable level over a longer (e.g., 4 to 9 month) period. This would be the first time a cut-off date has been established in this category, which is why readers are being provided with the maximum amount of advance notice regarding the possibility.
The above projection[ ] [is] for what could happen during … the next few months based on current applicant demand patterns. The determination of the actual monthly cut-off dates is subject to fluctuations in applicant demand and a number of other variables which can change at any time.
Read full article here: Visa Bulletin For December 2012
ReplyDeleteIT IS VERY HARD TO EARN MONEY AND VERY EASY TO BURN MONEY. A Genuine Direct Investment Business is the SAFEST, FASTEST and usually most PROFITABLE way to get an EB-5 visa.
A Genuine Direct Investment Business has the following characteristics:
It is 100% owned and controlled by the investor. This eliminates conflict of interest and significantly reduces the possibility of fraud. Even ICE, USA's biggest investigative agency says that all Regional centers usually commit fraud, conflict of interest and violations of securities laws (see http://www.smartbusinessbroker.com/EB5_ICE_fraud_memo.pdf)
It is in either a premium franchise such as Five Guys / KFC / Hertz etc. or in a solid non-franchise business such as banquet hall, used car lots, etc. If the business is a risky franchise such as Voodoo BBQ, Marcos Pizza, etc., it is unsafe. A franchise is suitable for investment only if it is on a major bank's list of approved franchises AND features in a list of top performing franchises (see http://www.slideshare.net/MohammedShaikh4/2012-top200 ) AND is recommended by an experienced business broker who owes a fiduciary duty to the EB-5 visa investor. Most franchises are unsuitable for EB-5 visa investors due to their inability to PROFITABLY generate 10 jobs.
It is easily saleable in the open market. For example, it is easy to quickly sell off a Five Guys or KFC Franchise in the open market, while there is no market for partnership or regional center securities, risky franchises such as Marcos Pizza / Voodoo BBQ / Twistee Treat, etc. due to which EB-5 visa investors are stuck for 5-9 years and have to PAY to sell their share.
What are the advantages of choosing a Genuine Direct Investment Business to get the EB-5 visa?
The EB-5 visa investor gets FULL control and ownership of their business and corporate funds. This helps eliminate conflict of interest and fraud, and results in higher earnings and capital gains.
The EB-5 visa investor usually earns 20-35% Returns annually, while regional centers offer measly returns of 1% and some partnerships are now known to offer returns of up to 5%, but have capital losses on exit.
The EB-5 visa investor usually earns solid capital gains of over 30% after 3 years, while those who invest in risky franchises, partnerships and regional centers usually end up with capital losses.
The EB-5 visa investor has an easy exit strategy and can sell their business (usually for a profit) as soon as they get their permanent green card (I-829 approval), while risky franchises, partnerships and regional centers lock in funds for 5-9 years.
It takes about half the time to get the I-526 approval (temporary green card) using a Genuine Direct Investment Business in comparison to regional centers.
Genuine Direct investment Businesses are usually able to help the EB-5 visa investor get their I-829 approved, whereas less than half of the EB-5 visa investors who chose regional centers, partnerships and risky franchises were able to get their I-829 approved.
There is usually no conflict of interest and fraud seen in a Genuine Direct Investment Business, whereas there is usually extensive conflict of interest and fraud to be found in regional centers, partnerships and risky franchises. An excellent example is how Joe Sloboda and Fred Burgess sold Voodoo BBQ franchises to EB-5 visa investors without disclosing the fact that they were the master franchisors and earned money on the back end.
EB-5 visa investors should avoid those who refuse to guarantee the following:
1. Full and ongoing disclosure of all material information.
2. Freedom from fraud and conflict of interest.
3. Full refund of your fees in case you’re rejected by USCIS.
If you're an EB-5 visa investor interested in getting their EB-5 visa quickly, please contact us. You'll be really glad that you did.
Yours truly,
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616 Online: http://www.smartbusinessbroker.com Skype: Mohammed.Shaikh