US Permanent Residency by Investing in a
Regional Centre Property Development Partnership EB5 ENQUIRY FORM
Ambler Collins have been
appointed and authorised to represent an American organisation in the United
Kingdom and Europe. Ambler Collins has been working with this organisation
since their establishment in 1996 and collectively achieved a 100% success
rate in obtaining visas under this category.
Investing in a Regional Centre Property Development offers a secure investment
in prime real estate. This investment offers superior monthly income and
a significant capital gain opportunity that has been proven over the last
decade. The current property available for Investors requires USD$535,000
to participate. We are currently managing in excess of USD$300,000,000
worth of property investments.
The structure is that each property under the legal structure of a Limited
Partnership. Our American partner as the General Partner are an established
commercial property company offering investments in prime real estate which
qualify immigrant investors and their immediate family for Permanent Residency
( the Green Card ) via the EB-5 visa category.
The EB-5 Visa is unusual in that it provides you with Permanent Residency
from the outset. As a guideline we advise clients to allow 12 months from
deciding to proceed to when they should expect to have their visa issued,
although time frames can differ.
The EB5 Visa provides the most flexible path to a green card based on a
US investment. The EB5 visa does not require the applicant to manage the
day-to-day affairs of a business. One may invest in an existing business,
or a new business. More than one person may invest in the same business.
The EB5 investor may be a minority owner of the business.
You can qualify
for an EB5 as follows:
- Invest $1 million and hire ten employees anywhere in the USA
- Invest $500,000 and hire ten employees in an area where the unemployment
rate exceeds the national average unemployment rate by 150%
- Invest in a regional centre.
INS designated specific areas, called Regional Centres, as eligible to receive
immigrant investor capital. INS approved over 20 Regional Centres. Regional
Centre investors may rely on indirect job creation rather than directly hiring
ten employees. A competent professional, such as an economist, must quantify
the indirect employment. If the regional centre is in a high unemployment
area the required capital is reduced to $500,000.
Of the 10,000 investor visas (i.e., EB5 visas) available annually, 5,000
are set-aside for those who apply under a pilot program involving an INS-designated "Regional
Centre." To date, the quota has not been exceeded.
ENQUIRY FORM
Sections
Who should invest? <back
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EB5 investors include people from all walks of life; professionals,
business people, persons wanting to facilitate a child's education, and retirees.
Because the EB5 visa permits employment in the US, many EB5 investors become
involved in charity or part time work. Simply put, the EB5 visa gives you
the flexibility to do what you want in the USA.
- If you don't want to actively manage your business, you should consider
EB5
- If you have a US citizen parent or child over 21 years of age, you should
consider family class visa categories.
- If you have exceptional skills or are famous you may qualify for a green
card based on your skills or fame.
- If you want to manage your own business, consider L-1, E-2, international
manager visa categories.
If your goal is to have a green card and not to actively
manage a business, it is most often cheaper to utilize the EB5 category rather
than to start and maintain a business.
Is EB5 a truly passive investment? <back
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The EB5 regulations require involvement
in management or policy making. The regulations deem a limited partner in
a limited partnership that conforms to the Uniform Limited Partnership Act
as sufficiently engaged in the EB5 enterprise. However, the Uniform Limited
Partnership, adopted by most states of the United States, prohibits the limited
partner from actively participating in management.
On one hand you must be involved in management or policy making, while on
the other hand you can't. We resolve this contradiction by granting the limited
partners the right, as a group, to oust the general partner for "cause" and
to suggest or recommend issues of overall policy. Furthermore, our limited
partnerships complies comply with the Uniform Limited Partnership Act.
How is your investment structured? <back
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Each Limited Partnership owns one building.
Your investment purchases an interest in the Limited Partnership. You become
a Limited Partner. Your percentage share of the Limited Partnership depends
on the percentage your investment bares to the value of the project. The
prospectus for each project describes the valuation methodology.
The general partner, renovates the property, leases
the property, and manages the property. The Limited Partners receive their
share of the income from the properties. All investors receive 70% of the
profits.
What is a limited partnership? <back
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This is best explained through an overview
of the various entities available to investors.
Shareholders own a Corporation,
formed by filing a charter with a state government. The corporation is taxed
on its income. The shareholders are only taxed on dividends paid to them
by the corporation. Shareholders do not pay tax on the corporation's income.
The shareholders only risk the cost of their investment in the corporation,
they bare no responsibility for the general affairs of the corporation.
A
partnership is comprised of two or more people or entities coming together
for an enterprise, without any particular state charter. The partnership
does not pay tax, but passes through all items of income and loss to the
partners. The partners pay tax on partnership earnings. Each partner, unlike
a corporate shareholder, undertakes responsibility for the entire operations
of the partnership. If the partnership were to be sued and judged liable,
each partner bares full responsibility for the damages. A corporate shareholder
has no such direct liability.
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. As in a corporation,
the limited partners are passive investors liable only for the value of their
investment. As in a general partnership, limited partnership income is taxed
at the partner level, not at the entity level.
A limited liability company
is a corporation that passes through income and loss to the shareholders
but offers shareholders the same limited liability as a limited partner or
corporate shareholder. You could say a limited liability company is a corporate
version of a limited partnership.
How is my limited partner interest
protected? <back
to sections
The Certificate of Limited
Partnership must be recorded with the State of Washington as a public record.
The Certificate refers to a Schedule A of the limited partnership agreement,
which 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.
Is my investment guaranteed? <back
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No. The law requires an "at risk" investment
without guarantees or redemption rights.
What are my risks? <back
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As in any investment there is a risk of total loss. We
invest in real estate without mortgage or bank financing. This lack of debt
eliminates much of the risk of total loss. Like everybody we risk the deleterious
effects of acts of god, war, and market fluctuations in rental income or
real estate prices. We urge all investors to visit us, check our references
and to independently verify the information contained in our prospectus.
Why must I invest before you will apply for my green
card? <back to sections
We understand
that other investment companies accepting EB5 investors place funds in a
trust or escrow account pending visa approval. In this case the funds may
only be released upon visa approval.
Our primary business is real estate
development. Most of our capital comes from investors who do not seek an
immigration benefit. These investors invest on financial consideration only,
without preconditions. EB5 investors, however, have two considerations, the
soundness of the investment, and obtaining their green card.
The investment
must be analysed upon its merits. Our policy is to require that you commit
your capital as any other investor. If for some reason, you do not receive
your green card, our contract with you requires us to refund your investment.
We maintain credit lines with several banks for this purpose. We also have
a constant stream of new investors, providing an alternative source of funds
to refund your investment, should you fail to obtain your green card.
Escrow
or trust agreements present immigration difficulties. We offer investment
opportunities on a first first-come first first-served basis. While your
investment capital sits in escrow or trust pending the results of a visa
application, which may take six to eight months to complete, the target investment,
which formed the basis of your visa petition may have been sold out to other
investors. You would be in the unfortunate position of basing your green
card on an investment that didn't exist, and run the risk of having your
application denied. Finally, although the regulations permit escrow arrangements
we find that INS looks more favourably on petitions based on a completed
investment rather than a pending one
Hopefully, you will be satisfied with
your investment and wish to keep all or part of the investment regardless
of the out come of your green card application. The need for a green card
is situational. You may decide you don't like life in America, or your family
or economic situation may change. The need for sound investments never changes.
While you would not have come to us unless you were seeking a green card,
now that we've met, we hope you will be more than satisfied by our investment
results and service.
How does the partnership distribute income? <back
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Each partnership distributes
profits to its investors monthly. The distributions are based on the prior
month's gross rental income net of expenses. Investors receive a profit and
loss statement with each month's distribution. At the end of the year the
partnership issues a summary report along with Internal Revenue Service form
K-1. Form K-1 details your yearly income and expenses. Your accountant will
require form K-1 to prepare your US annual tax return.
I understand that
EB5 has been the subject of litigation. Will this history effect my green
card applications? <back to sections
It should help, since CIS removed conditions from all pre-1998,
our partners investors in June, 2006. This sets a precedent for programs,
which are full $500,000 investments that create employment in the US.
The
history is outlined as follows:
The EB5 visa category started in 1991. Regional
Centres started in 1993. Our partner formed its regional centre in 1996 and
raised capital from some 40 investors between 1996 and 1998. Several companies
competed for investment capital during this period. Most of the companies
didn't offer sound investments and were really in business to collect fees
rather than to fund an ongoing business. Many investment opportunities didn't
raise the full $500,000 investment capital or hire the required number of
employees.
CIS (formerly INS) rightly wanted to stop these abuses of the program.
In 1998, CIS wrongly applied their revised rules retroactively to people
who already had approved petitions. CIS attempted to revoke these visa petitions.
This started the litigation.
In 2002, Congress passed a new law to protect
the pre-1998 investors. Also, in 2002, in a case commonly known as "Chang" the
9th Circuit Court of Appeals ruled that CIS may not apply their new rules
retroactively. In August of 2003, CIS began approving regional centre petitions
for the first time since 1998.
In September 2005 and May 2006, BCIS approved
all pre-1998 removal-of-condition (I-829) petitions. As a result our partner
dropped its lawsuit against the Justice Department. We were able to settle
with CIS because all of our investors invested $500,000 in job creating investments.
It took 8 years to work through the system and prove the point. During the
interim all of the investors were allowed to live in the US as if they had
permanent green cards. Other than the delay and the legal expenses, which
were paid out of investment income, there was no serious inconvenience to
the investors.
We believe that EB5 immigration petitions based on sound investments,
for the full $500,000 as prescribed by the rules, with proper supporting
documentation, will continue to be approved.
What documents must I prepare
to process my visa petition? <back to sections
You must prepare complete biographical information
for each applicant and the principal applicant must prove the source of the
investment funds. To prove the source of investment funds, INS requires five
years of tax returns, five years of bank records, proof of ownership in any
businesses, financial statements for each business and business licenses.
The idea is present a track record of an honest course of dealing. If your
capital came from a specific transaction, such as sale of a house, inheritance
or gift, you must prove the transaction occurred, by providing an official
document, such as a closing statement or contract or other official documents.
This is not an exhaustive list. Documents Other documents may be required
and vary on a case-by-case basis.
What issues have been problematic in
EB5 cases? <back to sections
We use the same investment model for each case. INS has reviewed
our investment model and has approved visa petitions based on our model.
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, INS case examiners
require a well-documented source of funds.
Where can I find a copy of
the relevant law and regulations to study?
<back
to sections
Please go to the Bureau of Citizenship
and Immigrations Services web site. A direct link to investment visa information
is: http://uscis.gov/graphics/services/residency/investment.htm
How long does INS take to process my visa petition? <back
to sections
Processing times
vary from as little as a few weeks to as much as six months. We can't predict
or promise a particular processing time. You should plan for the entire process
to take approximately one year.
What are the processing procedures? <back
to sections
A general outline of the application
process follows. Your solicitor will be able to give you a more complete
description.
Step 1) File form I-526 Petition for Alien Entrepreneur with
the California Service Centre. This petition requests INS to certify the
applicant and the investment as eligible for EB5 visa status.
Step 2) Upon
approval of the I-526 petition, (a) if you are in the United States you may
apply for Adjustment of Status to Permanent Residence by sending form I-485
and supporting documents to the INS regional processing centre nearest your
US residence. (b) If you are abroad you must wait for notification from the
Embassy in your home country to prepare documents for the visa interview.
The purpose of the Adjustment of Status or consular visa interview is to
make sure you are not subject to a grounds of exclusion, e.g. a criminal
past, infectious diseases, etc.
Step 3) Upon approval you receive a form
evidencing the approval and as well as a travel document. You will also receive
the temporary green card in the mail. If you are abroad you must enter the
US within six months of the date of the Embassy approval.
Step 4) After two
years, you may file for removal of conditions or your permanent green card
using Form I-829. This procedure permits INS to verify that you have maintained
your approved investment for the required two-year period.
How do I
apply? <back to sections
For further information please contact:
Mathew Collins,
Ambler Collins, Eden House, 59 Fulham High Street, London, SW6 3JJ
Telephone: 020 7371 0213
Email: mathew@amblercollins.com
www.amblercollins.com
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