1. Investor performs extensive due diligence and chooses a Regional Center.
2. Investor reads, understands and signs the Regional Center partnership documents.
A. Investor funds their investment with the full investment amount.
3. Funds are released (from Escrow) $500,000 (TEA)/$1,000,000 (non-TEA) to Partnership.
A. Once funding is accepted, and the General Partner approves the investor the investor becomes a member of the specific investment entity.
B. Partnership invests the fund in accordance with partnership comprehensive business plan.
4. In an investment structured as a loan the investment pays the Partnership the interest on the note, interest rate and times of payment will vary.
5. Investors are either equity partners or participating in a loan to a target investment. In either case the way Regional Centers distribute income on profits, if any, vary widely.
6. Some Regional Centers have an exit strategy on the EB-5 investment and others do not. Presumably in a loan structure the borrower pays back the loan amount upon maturity. In an equity situation the asset must be sold and a suitable buyer found.
7. In all cases the investor has completed all immigration requirements after the approval of the I-829.
The business side of the process follows whatever exit strategy has been stated in the individual partnership agreements by the various Regional Centers.