Disclaimer: *For sold properties, actual sales price is reported. For active investments, the Estimated Current Value is based on the Managing Member’s estimate of current value. Recent acquisitions are generally valued at the acquisition price. Values may be internally prepared. This web-page/website is for informational purposes only and is qualified in its entirety by reference to the Confidential Private Placement Memorandum (as modified or supplemented from time to time, the “Memorandum”) of any offering of MarketSpace Capital.
The EB-5 Investment Timeline and Redeployment: A MarketSpace Capital Perspective
In this blog post, we at MarketSpace Capital will guide you through the EB-5 investment timeline and redeployment process.
The EB-5 Investment Timeline
The EB-5 visa is a significant investment visa that allows you to invest a minimum of $800,000 into the U.S. economy, resulting in job creation and economic growth while securing a Green Card for your entire family. However, the timeline for this process can be quite lengthy, typically ranging from five to seven years. This timeline includes obtaining the conditional green card, which can take two to three years, and then remaining on the conditional green card for two more years. Only after filing the I-829 form is the investor eligible to get their money back.
The Need for Capital Redeployment
Due to the lengthy timelines and the uncertainty surrounding them, there has been a need to redeploy capital in recent years. This need arises because the initial investment has run its full course prior to the investor being eligible to receive their capital back. The new legislation around redeployment, the Reform and Integrity Act of 2022, has formalized how this works, providing important protections for investors. Under the new law, there are guardrails around redeployment, allowing investors to have some confidence in understanding what will happen if they are in that position.
The Importance of Transparency and Standards in Redeployment
Transparency and standards in redeployment are extremely important. It is crucial for investors to understand what the Regional Center plans to do with their money in the event of redeployment. This includes understanding where the money will be rolled over and what the exit strategy is.
At MarketSpace Capital, we believe that being an investment management shop with a broader scope of strategy that doesn’t only invest EB-5 capital is an advantage for our EB-5 investors. This means that when we’re in a scenario where some capital has to be redeployed, it doesn’t have to be redeployed in another ground up development project. Instead, we can provide an option that is much lower risk and income-oriented.
A Case Study in Capital Redeployment
As mentioned, EB-5 redeployments capital is not required to be invested in real estate construction projects. A recent instance involved CanAm Enterprises, a prominent Regional Center. The investors in this case had comparatively brief redeployment periods and thus chose to redeploy into municipal bonds that comply with USCIS’ policy stipulations to maintain capital at risk until the conclusion of their two-year conditional permanent residency term. Municipal bonds, particularly those aimed at infrastructure-related expenditures, are typically considered safer investments offering steady returns.
Alternatively, investors may seek higher returns with their redeployed capital. In this case MarketSpace Capital offers EB-5 investors other real estate projects which include mezzanine loans, and longer-term preferred equity real estate investments.
Investing in U.S. real estate and obtaining an EB-5 visa is a complex process. However, with the right strategy and guidance, it is possible to navigate the process successfully. At MarketSpace Capital, we have the resources to help you understand these complexities and guide you through your investment journey. Contact us to setup an appointment with a qualified representative to learn more about the EB-5 program.