Your capital is provided as a loan to the developer, and its return is entirely dependent on the project's success and the developer's ability to repay. The page states that there are no guarantees for capital return, and insurance against non-repayment is either impossible or extremely expensive. You must rely solely on a thorough commercial, financial, and legal analysis of the project.
It is crucial to understand the specific business project your company invests in, as your capital goes to the developer as a loan. Since your company's only asset is the right to claim loan repayment, you must be extremely careful in selecting a project. Thorough commercial, financial, and legal analysis is essential to mitigate potential risks.
The management company makes all investment decisions for you and other investors, as EB-5 is a passive investment. It is crucial to understand who you are dealing with, as they will take almost all the interest income from the loan, paying you only symbolic shares. This is the economic essence of the management company's business.
Yes, EB-5 is a passive investment. This means you are not required to manage the company, hire employees, pay taxes, or decide which project to invest in. All these decisions are made by the management company on behalf of all investors, allowing you to focus on your immigration goals.