You also don’t want to flush money down the toilet.How do you increase your chance of getting your EB-5 investment back? 

The answer is, “it depends.”

In this guide, we share what it depends on, common pitfalls, and what you should be considering to increase your chances of getting your EB-5 visa money back.

Most EB-5 Investments With Other Companies Are Not Collateralized, Putting You at More Risk

Do EB-5 investors get their money back every time? Unfortunately, this simply isn’t possible. Any investment, even the most secure EB-5 investment, still carries some risk.

Ideally, you would want to be in the first position of the capital stack with an EB-5 investment. However, many companies don’t prioritize EB-5 investments like Motcomb does.

At Motcomb, we carefully select our investment opportunities and offer a bespoke, modern approach to RCBI (Residency/Citizenship By Investment). 

This Is a Huge Risk – and Covid-19 Proved That

During the COVID-19 pandemic, many non-collateralized investments failed, causing a massive market shift across multiple industries and leaving RCBI investors wondering if they’ll ever get their EB-5 money back. 

While some companies managed to rise above the initial ups and downs of the market, many have not yet recovered. The gap between those that have recovered and those that haven’t is rapidly growing.

Motcomb’s EB-5 Investments are Collateralized, Putting You in “First Position”

Collateralize your EB-5 investment by choosing Motcomb as your investment management firm. Our tailored solutions put investors in the “first position” — minimizing risk while investing in growth industries.

Our goal is to help you reach your residency and financial goals with institutional-grade, well-structured equity investment funds for RCBI investors.

We’ll get to know your unique situation during your free consultation, and make our recommendations based on your specific goals.

We want you to get your green card and your EB-5 money back. Give us a call to learn how.

No Investment is Ever Guaranteed. If You’re Told That, Run!

No investment is 100% secure. Every investment comes with risk. 

Some investments are high risk but generally promise greater returns. Other investments are lower risk, promising higher security on your capital investment but potentially lower returns.

Regardless of the type of investment or whether it’s considered risky, if any investment firm offers a 100% guarantee, you should consider going elsewhere as they are likely not honest about your investments.

To Understand Your Likelihood of Getting Your EB-5 Investment Returned, Ask Yourself These Questions

Before you invest, you need to be fully prepared to assume the risk of an EB-5. 

Getting your EB-5 money back isn’t always easy, especially if you jumped into an investment without asking these questions:

Where Are You in the Capital Stack?

Before you invest in any EB-5, it’s important to know where you will stand in the capital stack. Here’s how it works:

Senior Loan – Also referred to as senior debt, the senior loan is usually the largest component of the capital stack, ranging from 50% to 75% of the full stack. Commonly, it’s considered a traditional bank loan because it’s secured by a deed of trust on the property or a mortgage. It’s a lower risk to the lender because it’s the first in line to be repaid should any problems with the investment arise.

Mezzanine Loan – Payment priority of a mezzanine loan falls right behind the senior loan, but often offers higher average target returns and higher risk. It’s been a popular capital structure for EB-5 projects because of its sheer size, but anyone considering this type of investment should review the experience of the firm involved, the strength of the market, and the creditworthiness of the borrower.

Preferred Equity – Coming in after mezzanine loans in repayment priority, preferred equity is somewhat less risky than common equity, but it’s not so straightforward to understand. It may act similar to subordinate debts with a fixed return, or it could function just like common equity, but with superior payment rights. 

Common Equity – Usually having the biggest payoff, common equity holders have an equity interest in a property, but lower priority status where payoff or distribution is concerned. It’s considered the highest risk, but the returns could be outsized compared to the rest of the stack.

No matter where you fall in the stack, it’s important to remember that no investment is fully guaranteed. 

Be sure that you can afford a loss or hang onto the investment long term, should it not pan out the way you would have hoped.

What Is the Plan for Me to Get My EB-5 Money Back?

Approval of your I-526 petition grants you conditional permanent residence, but to qualify for removal of conditions, you must:

• Maintain the EB-5 investment until the removal of conditions, and
• Create 10 permanent jobs for permanent residents or US citizens

Once these conditions have been met, you are free to seek recovery of your investment funds.

How your funds are returned is determined at the time of finalizing your investment with the Regional Center. 

For clarification, you should look at the private placement memorandum and limited partnership agreement, where you and the other investors become the limited partners and the Regional Center is the general partner.

What Is the Exit Strategy?

Depending on how the investment was made, each project will have different exit strategies, including: 

• A complete project liquidation with the return of EB-5 investments and any excess funds distributed as profits.
• Leveraging the enhanced equity to refinance and repay investors without liquidating.
• Annual distribution of returns on equity investments, with the exit being sought after by the efforts of each individual EB-5 investor.

We advise working with a reputable EB-5 investment expert to develop a viable exit strategy that won’t impact the at-risk requirement of the program.

Can This Company Show Previous Success in Similar Projects?

Absolutely. Motcomb specializes in tailoring EB-5 investments to meet your specific needs. 

We are not an agency or intermediary. We are an investment management company consisting of seasoned industry veterans, and we are licensed in the jurisdictions of our investment opportunities and portfolios.

Click here to read some of our client testimonials.

How to Minimize Risk with EB-5 Investments to Maximize Your Chance of Getting Your Initial Investment Returned

Is All Financing For The Project Currently Secured?

Before investing, find out if the project already has secured financing in place. Project viability should never depend on EB-5 investments alone. 

Choose a project that has money, knows where capital is coming from or has government funding, loans, or grants available.

In a nutshell, you want to invest in a project that is going to happen even without your investment.

Invest in Growth Industries

When choosing an EB-5 investment management company, it’s important to find one that focuses on growth industries.

Growth industries are sectors of an economy that experience an above-average growth rate in comparison to other sectors. Oftentimes, growth industries are new or pioneering industries that grow due to the demand for new or better services and products offered by the companies in that field.

At Motcomb, we focus many of our investments on growth industries, such as:

• Technology
• Real estate; and
• Agribusiness

Invest in Projects Backed By the Government

Projects backed by government funding, loans, subsidies, or tax breaks are often considered lower risk. 

Whether it’s a rural infrastructure project, agricultural project, or any type of project that supports the supply chain, the US government is far more likely to invest, making the project less likely to fail overall.

At Motcomb, we develop and manage well-structured, innovative, and institutional-grade private equity investment funds for accredited and RCBI investors. Our selection process is based on our years of experience and influence in investment allocation.

Make Sure Your Investment Is Collateralized and That You’re in the “First Position”

At Motcomb, many of our investment opportunities put you in the “first position” as a senior investor.

First position gives you a lien on all property and equipment, so if something were to go wrong with the project, you can foreclose on the collateral and sell it to collect your money back.

With EB-5 Investments, The Goal Isn’t Huge Returns - It’s Getting Your EB-5 Money Back While Receiving Your Visa

EB-5 investments are not a “get rich quick” scheme. The intention of EB-5 investment is to obtain a green card (residency) and recover the invested funds once residency is approved and the conditions are removed.

The program was specifically designed to provide a way for qualified foreign investors, who meet the required capital investment and job creation demands, to obtain permanent residency — not as a way to earn a +20% annual return. 

On average, an EB-5 investor can expect to see no more than 1-3% ROI, if anything.

Will You Get Your Investment Back if the EB-5 Project Fails

The U.S. government requires that you maintain an “at-risk” EB-5 project investment until conditions are removed before you can recover your money. 

Motcomb focuses on investing your EB-5 contribution toward projects that have already secured funding. When funding is secured, the project’s viability often outweighs the potential risk.

In addition, Motcomb puts EB-5 investors in the first position, minimizing risk and mitigating losses from the start.

While there are no guarantees when making an EB-5 investment, you can rest easier knowing that Motcomb invests in innovative, top-performing industries with the least amount of risk.

Invest in an EB-5 Project With Motcomb

Motcomb isn’t just another investment intermediary or agent. We are a fully-licensed investment management firm specializing in bespoke solutions for your EB-5 investments.

With our unique and innovative investment approach, you’ll enjoy a much quicker path to securing your permanent residency and the returns of a well-structured investment.

Book your free consultation to find out what Motcomb can do for you.