1) Approval speed: USCIS statistics show that most EB-5 petitions filed by regional centers are being delayed for over a year due to regulators investigating regional centers for fraud. In contrast, it now takes less than half the time to get approval of an EB-5 visa petition filed on the basis of a Direct Investment Business.
2) Fraud: Regional Centers engage in securities fraud and conflict of interest, and this problem is usually absent in Direct Investment Businesses.
3) Operating profits: It is usually easy to earn hefty profits with Direct Investment Businesses, while it is hard to get more than 1% annual profit in Regional Centers.
4) Capital loss is very common when investing in regional centers, and capital gains are common when investing in Direct Investment Businesses.
5) Exit Strategies are very easy when investing in Direct Investment Businesses and very hard when investing in regional centers.
How to avoid being defrauded by regional centers?
Ask the regional center's promoters to give a notarized affidavit affirming that they've fully disclosed ALL material facts and are fully complying with securities laws in the US and abroad.
How to avoid fraud in Direct Investment Businesses?
1. Do NOT invest in a franchise that has less than 300 operating units or is not on an approved list of SBA qualifying businesses franchises with Chase, Citi or Bank of America. For example, safe fast food franchises are KFC, McDonalds, Subway, Burger King, 5 Guys, etc. Unsafe examples of fast food franchises would be Elevation Burger, Marco's Pizza, Quiznos, etc.
2. Do NOT invest in a partnership. The same issues that make regional centers an unwise choice are also issues that make Partnerships an unwise choice.
The ONLY safe and easy way to get your EB-5 visa is by owning and controlling your own business. We've helped 48 investors get EB-5 visas since 2004, and we'll be glad to help you too.
For further information, please visit our website http://www.smartbusinessbroker.com
Mohammed Shaikh, MBA, CFE, Licensed Business & RE Broker (CA & FL)
Phone: +1 407 535 0616