A Nysa Global’s Guide to Choosing a Right Real Estate Investment to Earn an 18 to 20% IRR!

A Nysa Global’s Guide to Choosing a Right Real Estate Investment to Earn an 18 to 20% IRR!

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The EB-5 program is a government initiative that allows real estate investors to get a green card by investing in commercial real estate development projects in the United States. This program aims to attract foreign investments for large-scale real estate projects to create jobs and boost the economy. The program targets locations where unemployment is at a minimum of 150% of the national average.

Why Real Estate is a Right Investment Option for EB-5 Investors?

The great recession of 2008 had a devastating effect on the real estate development projects, with most projects not receiving any conventional financing, such as construction loans. Before the recession, the rules around EB-5 job creation to meet the required job creation quota per investor were unclear. Because of this uncertainty, many EB-5 investors would shy away from real estate projects.

But when the EB-5 program relaxed its regulations (during the crisis) to boost real estate investment, the real estate landscape started to change for the better.

What makes real estate an excellent EB-5 investment?

Most EB-5 investors prefer real estate investments because of the following:

  • Real estate projects offer real collateral with a promise of a great return on investment.
  • Unlike intangible investments such as bonds and stocks, real estate is a tangible investment that investors can physically inspect.
  • Historically, real estate investments have proven a good inflation hedge to protect against a loss.
  • Investors have the opportunity to do their due diligence to investigate the real estate project and conduct background checks and appraisals.
  • The new rules are flexible, and the need for real estate investments is real.

Difference of Debt, Equity & Preferred Equity in EB-5 Projects

EB-5 real estate projects are usually structured to have EB-5 capital, making an entry into the project as interest-only, fixed-term debt. The EB-5 investor’s funds are loaned to the project at a specific interest rate for a certain duration (usually 5 years). After the investor completes the necessary EB-5 immigration steps and the term of the loan, the loan amount is repaid, and the funds are returned to the investor.

Another categorisation is the EB-5 funds as preferred equity. This means the investor has a priority claim on the assets and earnings of the new enterprise.

Nysa Global can help you earn an IRR of 18-20% IRR on your EB-5 real estate investment!

Typically, if you have to invest through the Direct EB-5 route, you would have to submit your business plan, invest, manage and run your own business.

Nysa Global does it a little differently to ensure that you earn high returns on your investment. All you have to do is invest $500,000 as an equity partner into a pre-defined, fully structured and qualified investment opportunity and let us manage and run your business.

Why do it with us? Because...

  • We have a local US partner with local US debt already in place; we just need an equity investor.
  • All participants, including the buyers, contractors, operators, etc., are already vetted and signed up.
  • EB-5 investment becomes preferred equity with fixed coupon return PLUS profit share in the project, which simply means an 18 – 20% IRR per annum!

Direct EB-5 Project Models

As an EB-5 investor positioned to be a preferred equity partner, we offer an investment opportunity in the following real estate projects:

  1. Senior housing community:
    Advantages:
    • The operator has a very strong track record and brand in the market.
    • US construction loan is committed.
    • Sites and feasibility are done.
    • Opportunity to earn annual income PLUS a share in the profit of the sale of the project.

  2. Day Care Center:
    Advantages:
    • Branded franchise with a strong track record.
    • US construction loan is committed.
    • Sites and feasibility are done.
    • Opportunity to earn annual income PLUS a share in the profit of the sale of the project.

  3. Rental apartments with HUD financing:
    Advantages:
    • Earn annual income PLUS a share in the profit of the sale of the project.
    • Site identified and HUD secured (low-cost loans offered under the Federal government funding program).
Invest in Nysa Global’s fully structured, pre-defined, and qualified projects and earn an IRR of 18 to 20% per annum. Need any more reasons to speak to our EB-5 expert? Contact us now!

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