Masami Hibino

Reinvestment risk

Does the reinvestment risk happen only because of retrogression or are there other reasons why it could happen?


Marko Issever
May 28, 2018 05:00 PM  Marko Issever

Yes. If the project is in its final stages of completion, on the one hand the project is very safe from a job creation standpoint since most if not all the construction jobs are likely to have been created. By the time the investor’s I-526 is approved, it is possible that many of the indirect and even the induced jobs are created. This makes the eb5 investment very safe from an immigration standpoint. On the other hand, since the investor in this case would most likely have a few more years for his whole process to finish, he would most likely be facing reinvestment risk. Therefore, even though the investor is not a citizen of a country subject to retrogression, he could still be subject to reinvestment risk by simply choosing a “safe” project that is ready to return his principal back when he is not ready to receive those funds as of yet.


Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.