What Are The Top EB-5 Investment Options?

What Are The Top EB-5 Investment Options
Here at Lead PPC, we are huge fans of the USICS EB-5 green card program. In addition to working with close to 100 franchise brands, we actually own quite a few franchises ourselves. And, in order to grow more quickly, we have started to partner with various immigrant investors via EB-5 Investment and E-2 Investment programs.
How Does An EB-5 Investment Work With Franchising?
About 99% of all EB-5 investments are made in large $50,000,000 – $1,000,000,000 projects such as infrastructure, hospitality, residential, and other types of real estate investment projects via what is called a “Regional Center”. But, when these projects fail, they fail big. Not only do the EB-5 investors lose their money, but they don’t even get their green card. One of the EB-5 investors that we are working with currently chose to do a restaurant franchise with us instead because he had already lost $800,000 once with a large Regional Center and just wanted to invest in something that only required his investment, he could see, and could even potentially make him more money over time than just receiving a small interest return from the Regional Center.
An EB-5 investment into a franchise is known as a “Direct” investment because you’re not working with a Regional Center. Essentially, the immigrant investor ends up putting in either $800,000 or $1,050,000 and if there are any other costs, it’s typically covered by the partner such as us that you work with. In our case, we usually give the immigrant investor 25% ownership of the new company that we create together. So, we’re partners. And, we use the funds to build a franchised location that we’re all interested in. The main thing that is important is that we don’t actually use all of the $800,000 – $1,050,000 to build the franchise but keep a decent amount of reserve capital in order to make sure that we 100% meet the requirement of maintaining 10+ employees over the initial 2 year period so that you get a green card for sure, regardless of what happens to the business.
But, we’re here for the long haul. As much as possible, we try to re-coup the portion of the money that used to create the franchise within the first 1-2 years. And, from there we seek to create a solid recurring revenue situation where we all earn a consistent cash-flow based off of the revenue and profits generated from the franchise itself. After you receive your green card, we can have a discussion about either buying you out so that you get your money back with a return over a certain amount of time or continue to be partners together with the existing business and even expand into other locations if desired.
Essentially, we are business partners in a franchised small-business here in the United States. We know a ton about franchising. In fact, we’ve worked with hundreds of franchisors and helped sell around 2,000 franchises via our sales and marketing services here at Lead PPC.
Interested In Working With Us?
While we are newer to the EB-5 and E2 franchising space, we are veterans within franchising in general. We like EB-5 and E2 migrant investors because it allows us to scale more quickly, and it provides a long-term win win for the migrant investor with much lower risk and potentially a much higher ROI than what you can get from large projects via Regional Centers.
If you’re interested in learning more, please fill out the form on our website EB5Franchising.com.
Entrepreneur with a focus on Lead Generation, Google Adwords, Bing Ads, and Conversion.
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