The only safe option for EB-5 visa seekers is to choose Direct Investment Businesses in safe and established franchises (such as 5 Guys / KFC / Subway / Cicis Pizza etc.) or safe and established independent business models such as used car dealerships, scooter & motorcycle dealerships, gun shops, banquet halls, etc. Those who promote not so safe franchises such as Marcos Pizza or Voodoo BBQ usually fail to disclose that they have a financial incentive to promote these not so great franchises.
For $500,000 investment, Investors can start an auto parts store or 2 convenience stores or a Subway sandwich shop or day care or 2 Mexican fast food outlets or 2 used car lots or 3 scooter & motorcycle dealerships in Brooklyn (NY) or LA County (CA) or Fort Pierce (FL). These are just ideas off the top of my head. They can also take bank loans and start a KFC & Taco Bell Locations or banquet halls or other similar businesses, and basically the businesses would depend on the customer’s preference on location and type of business they’d like to run. Some clients prefer good old liquor / convenience stores, many like KFC & Taco Bell or 5 Guys fast food outlets, some prefer car dealerships, some prefer scooter dealerships, some prefer auto parts stores and some even prefer gun shops.
For $1,000,000 + $1-3 Million bank loan, clients can get started with movie theatres, sportsplexes, sports academies, sports arenas, skating rinks, etc. Again, they are all profitable, and the business referral I make is based solely upon the client’s preferences.
The above are only a small sample of lucrative opportunities, but they all have a few things in common, which make Direct Investment Business the smart choice:
1) 0 possibility of fraud as we offer a written guarantee of ZERO Conflict of Interest and FULL disclosure of material information to all clients, whereas regional center executives will always refuse to give this guarantee to EB-5 investors.
2) The annual ROI ranges between 15% to 50%, but averages about 22% for most businesses. In contrast, regional centers usually don’t even pay 1% annual ROI.
3) Easy exit strategies, which means investors can sell whenever they want and freely, whereas the shares of the regional center are not freely resellable and investors are locked in for at least 5 years.
4) Investors in regional centers usually experience capital loss, whereas investors in Direct Investment Businesses usually exit with capital gains. In 9.7 years as a Broker, I’ve yet to see even one regional center investor exit without capital loss, and in that same time, none of my clients made less than 20% capital gain.
5) The approval time for petitions based on Direct Investment Businesses is about half that of regional center sponsored petitions, and I’ve 100% approval rate at the I829 stage, and I have yet to see a regional center with 100% approval at I829 stage.
6) I confidently offer a 100% fee refund guarantee to clients because I know I do a professional job, while regional center promoters expect investors to pay for the negligence, greed and incompetence of regional centers and their marketing agents.
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616