Why should EB5 immigrants choose direct investments as opposed to Regional centers?

desionh1b

Banned
Every choice has pros and cons, and for prospective investment based immigrants who wish to become Legal Permanent Residents under the EB5 category, there are 2 routes to investing in order to qualify to receive Permanent Residency under the EB5 immigrant visa category.

The first option is to go and invest in a regional center. The obvious benefit is that it is usually 2-3 months faster than going with a direct investment. An added benefit is that you don't have to work in the business or even live in the geographic vicinity of the investment and can actually pursue a career independent of the investment. The obvious drawbacks are that the return on investment is a lot less and the risks to the capital far greater than going with a direct investment. It is undeniable that many regional center investors lose all or part of their investment.

The second option is to make a direct investment. The drawback is that it takes about 2-3 months longer to process the application, but from a businessman's perspective it is actually a far safer and more profitable option to go with the direct investment option as the chances of losing all or part of your money are pretty low and the return on investment is a lot higher. Also, it is easier to prove compliance with the US CIS requirements when an investor goes with the direct investment route, and when the investor goes with franchises of nationally renowned brands, it is quite unusual to have an operating loss leave alone lose all or part of the capital. The investor does have to be actively involved in managing the business, but this approach offers a solid pathway to growth and success.
 
But It is good to invest Regional Centers which protects your capital and has a long & good history of success with visa applications.
 
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I disagree, because actively managed direct investments ALWAYS earn more than the regional centers. A lot more actually :)
 
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