EB-5 Equity Ownership Model v. Debt Model

American Life, Inc. Investment Model
Comparison to our Competitors

AMERICAN LIFE. American Life’s EB-5 programs give investors titled ownership in the EB-5 project. The investor owns a percentage of the partnership that owns the project, including the real estate.

COMPETITORS. Most other Regional Programs bundle EB-5 capital and lend it to a developer.

  American Life – Equity Ownership Model Competitor – Debt Model
Investment Amount $500,000 $500,000
Subscription Fees Varies by Project Varies by Project
Ownership of EB-5 Project Yes. You own shares in a Limited Partnership that owns real estate No. Your money is loaned to a third party.
Annual Income Quarterly cash distributions from profits. Average annual yield for hotel and new Class A office, once stabilized is 5%. Annually 0.5% to 1.0% interest, less management fees. Owners may stop interest payments if cash is short.
Profit Potential Yes. EB-5 investors receive their capital, plus 70% of profit when project is sold. No. Return of original investment only.
Guarantee Return of Investment Not guaranteed by EB-5 project. The real estate has value when sold and all investors will share in the sales proceeds Limited guarantee. Possibility that other lenders will be paid before EB-5 investor. PPM says that investor may lose 100% of investment.

Competitor’s Programs: ‘Debt Model’

  • Investor is only a lender not an owner.
  • Investor is behind all other lenders and will be paid last, which increases the risk of non-payment.
  • If project fails Investor may lose 100% of investment.
  • No profit potential; only a return of capital.
  • Visa backlog at USCIS may extend repayment date to 10 years or longer. Investor receives 1% or less for many years before I-829 is issued.

Embassy Suites Seattle level 16American Life’s Programs: Equity Ownership Model

  • Investor is an owner of the Limited Partnership, the titled owner is registered with United States Government – USCIS
  • Investor is equal to all limited partners; there is no seniority.
  • If project fails Investor may lose capital but real estate will have value when sold
  • Profit potential as Investor shares in the profit, if any, when the real estate is sold.
  • Investor receives quarterly distributions from profit upon project completion, generally 1-3 years after investing (depending on when the investment is made in the construction period)

This analysis is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any interest in any specific project. No warranty is given as to its completeness or accuracy of the information contained, facts and statements, while given in good faith, are subject to change without notice.