Advantages of Investing through the CMB Export Regional Center
CMB Export, LLC Approval Letter
Investing through our Federally-Designated Regional Center offers the potential investor the most expeditious means for the EB-5 Investor visa. All CMB partnerships in the past and in the future will or have the same approved structure. The USCIS, when adjudicating a CMB investors petition, will know the project contains the same basic structure because they will have seen it before. We will always have a Government involved investment as we believe the various government agencies are a more solid investment. The project's jobs creation methodology has been approved and will also be the same as in our previously approved investments. The daily expenses of the partnership will be capped so that there is predictability in profit projections and no surprise or hidden costs. The exit strategy for all investors will be well defined or determined and not dependant upon selling something for “fair market value” as how do you define market price? In many existing Regional Center projects the only foreseeable buyer when the investor wants to leave the investment is the Regional Center operators themselves or the general partner. Additionally all of the “other” investors will be wanting out at or about the same time. How will all of the aforementioned affect any investors hope to get their original investment back?
CMB has the following strengths that should be considered when choosing a Regional Center for your investment path to the United States.
Approved Proof of Jobs Methodology - Investors should be very interested in the details of any EB-5 program and paramount to understanding EB-5 is proving new jobs. CMB combines investor capital with government funds and private capital to multiply the effects its investment capital has on job creation thus creating many more new jobs than are required. Since Regional Centers are allowed to utilize both direct and indirect job creation to support the investor’s requirement of generating a minimum of ten American jobs, it is easier to prove this minimum level of job creation. The concentration of capital investment in CMB investments creates so many jobs that CMB chooses to ignore the direct jobs numbers. By ignoring the direct jobs count CMB investors are able to claim only indirect jobs and avoid the uncertainty of direct jobs creation where there is no certainty if the jobs will be created and also the added risk of job counting at the condition removal stage (I-829).
Proof of jobs is the single leading cause of denial for petitions under the EB-5 program. The problem with finding out that the jobs are not provable from an investor standpoint is that it is too late once they find out the jobs are not there! The investors are already in the investment irrevocably and they may loose their visa altogether. Proof of jobs should be one of the first considerations of every EB-5 investor!
Defined Exit Strategy - The term of the loan to the government agency is six years from the time the first investor funds are placed. When all public sector investments are paid back, the investors simply vote to liquidate the partnership. There is nothing to sell to get your original investment back and, you are not dependent upon any segment of the economy such as real estate, travel, construction, entertainment or the farm market for the return or preservation of your original capital.
Low Risk Safe Investment – CMB is unique among all other Regional Centers and individual EB-5 programs. CMB structures its investment opportunities with governmental agencies. The funds are invested within those agencies; therefore the government agencies are the responsible party to repay the investment. Even if the investment is made with a private entity (Master Base Developer) the loan will be backed by a government security such as Mello- Roos bonds. This type of investing is not without risk; however the risk is minimal. Nearly all of the government agencies have many entities providing oversight because they are joint powers authorities comprised of the various cities, counties, and sometimes the State of California as participants. These entities have multiple sources of revenue to pay back the investment. Some of those sources of revenue include the power to issue bonds, receive tax increment financing, to obtain outright grants from Federal, State and Government, they can receive lease revenue, and they have the ability to sell property among other sources of funding. These Government Agencies have far greater sources of revenue than traditional private entity investments. The safety of CMB’s investment is paramount to our goal of obtaining the green card and return of the original capital for our investors.
Transparency Of Investment - Investors in CMB have a right to access to partnership records. The government entity financial records are also available. Thus our investors can see all the financial records of all parties.
Authorized 4.25% Cap on Business Expenses – Day to day expenses are capped at 4.25%. An investor can expect a modest return on their investment as anything above a 4.25% return is all that is needed to turn a profit. Investors are without worry that a “poor” performing investment may result in losses on both return on investment and day to day expenses.
Targeted Employment Area - Investors must also understand that each program must provide proof that the investment qualifies as a high-unemployment area. CMB Export, LLC has maps and letters from the State of California verifying our TEA status. This is done without manipulation of data, which would risk denial for our client’s petitions.
No Day to Day Management -Investors in the CMB Regional Center do not have to have day-to-day management responsibility because of the use of the limited partnership structure. The requirement of management participation by the investor is met with this structure.
Convenient California Location - California is the United States gateway to the Pacific Rim. California is still one of the most desirable locations to live.
Escrow Account Used to Protect the Investor - CMB uses an escrow account in both Asia and the United States. Our client’s funds are deposited in the accounts and only released to the partnership upon a successful adjudication of their I-526 petition. The escrow is structured that should the bank fail the investors funds are safe. CMB has no access to the client’s funds unless the petition is approved.
Overall Simplicity of the Program - We invest funds through a loan agreement with a government agency or master base developer. Costs are fixed day to day. There is nothing to sell, rent, or actively manage day to day. The loan return is fixed and the principal is safe. The job creation methodology has been approved nearly 100 times at the I-526 petition level on previous investors and the same report on indirect jobs provided at the I-526 will be provided at the I-829 condition removal stage of the petition process. Additionally, the exit strategy is simple.
