Friday, November 22, 2013

Why is a Genuine Direct Investment Business the best choice for EB-5 visa investors? How do EB-5 visa investors distinguish between scams and Genuine Direct Investment Businesses?

There is no shortage of crooks who're out to defraud EB-5 visa investor with fraudulent offerings ranging from fraudulent regional centers such as those marketed by Brian Su (including the now notorious Green Tech Automotive) to risky and / or unfair partnerships (that are basically regional centers in disguise) such as those offered by Phil Cohen, David Tashroudian, Mark Gordon (of E3 Investment Group), Zoe Makhsous, etc. to even risky franchises that don't have a strong history such as Voodoo (marketed by the conflict of interest infested partnership of Fred Burgess and Joe Sloboda), Marcos Pizza, etc. Let us not forget the aspiring EB-5 service providers such as Marc Hyman who lie about their track record and refuse to answer questions when exposed.

EB-5 visa investors read about the above entities and ask 1 simple question:

What is the safest and quickest way to get an EB-5 visa?

We offer Genuine Direct Investment Businesses, which are arguably the SAFEST, FASTEST and usually most PROFITABLE way to get the EB-5 visa.

EB-5 Visa investors should remember that IT IS VERY HARD TO EARN MONEY AND VERY EASY TO BURN MONEY. We are as careful about safeguarding our client's wealth as we are about protecting our reputation as Real Estate & Business Brokers and Advisors.

What is a Genuine Direct Investment Business? How can an EB-5 visa investor know what is a Genuine Direct Investment Business?

A Genuine Direct Investment Business has the following characteristics that makes it the BEST choice for EB-5 visa investors:
  1. The business is 100% owned, operated and controlled by the investor. This helps avoid conflict of interest and significantly reduces the possibility of fraud. This means that regional centers and partnerships can never qualify as Genuine Direct Investments due to the presence of fraud, conflict of interest and violations of securities laws.
  2. The business is in either a premium franchise such as Five Guys / KFC (for Fast Food), Napa (Auto Parts), Hertz (car rental) etc. or in a solid non-franchise business such as banquet hall, used car lots, child care business (these can be franchised or non-franchised), etc. If the proposed investment is in a relatively new franchise such as Voodoo BBQ, Marcos Pizza, etc. the investment is likely to be quite risky. Some easy ways to decide whether a franchise is suitable for investment is to find out if it is on a major bank's list of approved franchises, features in a list of top performing franchises (see link ) and is recommended by an experienced business advisor. Please remember that most franchises are unsuitable for EB-5 visa investors due to their inability to PROFITABLY generate 10 jobs. If you see promoters such as Joe Sloboda and Fred Burgess asking you to invest in Voodoo BBQ, ask them to full disclose their financial stake in Voodoo BBQ, and why are they engaging in conflict of interest.
  3. The Business Advisor / Broker as well as the CPA (and the franchisor in case the EB-5 visa investor chooses a franchise)  are there to guide and mentor the EB-5 visa investor till approval of the I-829.
  4. The business is easily saleable in the open market and there exists a ready market demand for the business. For example, it is easy to sell off a Five Guys Burger Franchise location or a KFC location in the open market in a relatively short time and get multiple offers for the business, while there is no market for partnership and regional center shares or debt, due to which EB-5 visa investors are stuck for 5-9 years and have to PAY to sell their share. Similarly those who invest in risky franchises such as Marcos Pizza or Voodoo BBQ or some no-name burger franchise would have to wait a long time to sell their business.
  5. It is usually easy to PROFITABLY generate the 10 jobs.
What are the advantages of choosing a Genuine Direct Investment Business to get the EB-5 visa?
  1. The EB-5 visa investor gets FULL control and ownership of their business and corporate funds. This helps prevent if not eliminate conflict of interest and fraud, and results in higher returns and capital gains.
  2. The EB-5 visa investor usually earns 20-35% Return on Equity each year, while regional centers offer measly returns of 1% and some partnerships are now known to offer returns of up to 5%, but most offer between 0 and 1% annual return on equity.
  3. The EB-5 visa investor usually earns solid capital gains averaging 25% after 3 years, while those who invest in risky franchises, partnerships and regional centers usually end up with capital losses.
  4. The EB-5 visa investor has an easy exit strategy and can sell their business (usually for a profit) as soon as they get their permanent green card (I-829 approval), whereas those who opt for risky franchises, partnerships and regional centers are often unable to exit their business for 5-9 years.
  5. It takes about half the time to get the I-526 approval (temporary green card) using a Genuine Direct Investment Business in comparison to regional centers.
  6. Genuine Direct investment Businesses are usually able to help the EB-5 visa investor get their I-829 approved, whereas less than half of the EB-5 visa investors who chose regional centers, partnerships and risky franchises were able to get their I-829 approved.
  7. There is usually no conflict of interest and fraud seen in a Genuine Direct Investment Business, whereas there is usually extensive conflict of interest and fraud to be found in regional centers, partnerships and risky franchises. An excellent example is how Joe Sloboda and Fred Burgess used to sell Voodoo BBQ franchises to EB-5 visa investors without disclosing the fact that they were the master franchisors and earned money on the back end.

Finally,  when making a decision on who you’re going to choose, please ask the service provider / marketer if they’re willing to offer the following 3 guarantees to you in writing, and if they don’t offer these guarantees in writing, I advise EB-5 visa investors to avoid them like the plague.

1.    Guarantee of full and ongoing disclosure of all material information.
2.    Guarantee of freedom from fraud and conflict of interest.
3.    Guarantee of full refund of your fees in case you’re rejected by USCIS.

I know I can confidently offer these guarantees in a notarised affidavit to my clients as I only deal with Genuine Direct Investment Businesses and owe a fiduciary duty to my clients. Our client always owns and controls the corporation 100%, and can immediately repatriate the funds back immediately in case our client is rejected by the USCIS, and any interest earned by client's funds in the bank is given 100% to our client. As far as we know, nobody else allows you full control of your corporation and funds at all times.

If you're an EB-5 visa investor interested in getting their EB-5 visa quickly, please contact us. You'll be really glad that you did.

Yours truly,
Mohammed Shaikh, Licensed RE and Business Broker (CA & FL)
Phone: +1 407 535 0616 Online: htttp://

No comments:

Post a Comment