9 Feb. We are currently freshening this page up a bit, so the formatting is sloppy for the moment. Please excuse the mess! If you have any questions you think should be answered here in our FAQs, please let us know. We'd appreciate your comments. CW
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FREQUENTLY ASKED QUESTIONS
For easy access to the questions on this page, click on a category below, or to help you find other answers, please look at the Site Map page of our website.
Our EB-5 Investments
Where is my capital invested?
Your capital purchases a share in a Limited Partnership (LP) in which you become a Limited Partner (shareholder). Each LP acquires a building for refurbishment or land for development. The purchase price will be at the same as that negotiated by American Life, which acts as the General Partner, managing the design, construction, letting and rent distribution.
A comprehensive prospectus is prepared for each Limited Partnership, detailing the investment costs, valuation and contractual arrangements. The LP raises sufficient capital from US citizens and immigrant investors, who invest on identical terms, to acquire and complete the project.
American Life cannot come back to you for additional funding. By investing into a Limited Partnership, your liabilities are limited to your capital.
Do I receive income from the investment?
Yes.
Stage 1. Cash. When you invest, your capital will go into an interest bearing deposit account or into US Treasury Bills. The interest, proportional to your investment, is paid monthly in arrears without any management charges or deductions. As your capital is used to build or refurbish the building, the income will reduce as the funds are used.
Stage 2. Rent. As tenants move into the building, all rents received are paid monthly in arrears, proportional to your investment, less a management charge as you would expect from any property management company.
What is a Limited Partnership?
A limited partnership combines corporate limited liability with partnership taxation. The limited partnership, formed by filing a charter with the state government, consists of a general partner and one or more limited partners. The charter details the rights and powers of the limited and general partners, percentages of ownership, and distribution of profits. The general partner manages the business. As in a corporation, the limited partners are passive investors liable only for the value of their investment. As in a general partnership, limited partnership income is taxed at the partner level, not at the entity level.
American Life, Inc. could use a limited partnership or limited liability company with equal effect. American Life uses a limited partnership because the USCIS (US Citizenship and Immigration Service) regulations specifically refer to limited partners, exempting them from the requirement to actively participate in the business. The regulations make no mention of limited liability companies.
Is my investment guaranteed?
No. The EB-5 legislation requires an “at risk” investment. This does not mean your investment must be risky but must be without guarantees or redemption rights.
What are my risks?
There is no such thing as a totally risk free investment. Stocks and shares and even Government Securities rise and fall in value.
American Life invests in real estate without mortgage or bank finance. It is the absence of borrowing which eliminates much of the risk. While property values fall as well as rise, dropping in value during recessions, history has demonstrated that values rise again and soon reach new peaks. No investor in an American Life managed property has sold at a loss.
When may I exit the investment?
Most Regional Centers lock-up your capital for five or six years. That is almost twice as long as it takes to secure an I-829 which removes Conditions, allowing you to exit the investment.
With American Life you may exit at anytime. If you wish to complete the green card process, that means approximately three years, perhaps a little less. However, circumstances can change unexpectedly and, if they do and you wish to cancel your immigration plans, even after a week or so, you may sell your shares.
If the visa process (I-526) has not been completed we will sell to another immigrant investor and, if it has, to a US
Is an American Life investment better than other Regional Centers?
We firmly believe it is and that is why so many Americans, with no immigration requirement and with so many other investment opportunities, place large sums of capital with us. They account for almost half our funds whereas no other Regional Center
Should I pay a deposit?
Only if you wish to invest into a particular project where only a few places remain and you cannot access your capital straight away. A 90 day deferment may be secured with a deposit of US$50,000, payable to American Life, Inc.
A deposit is non-refundable. If it were not, American Life would not be certain that the full investment was going to take place and the process would be self defeating.
Why should I invest before applying for my Green Card?
The regulations permit escrow arrangements but we have found that USCIS looks more favourably on petitions based on a completed investment. Our success record lends weight to that policy.
We offer our properties to US citizens as well as immigrant investors. If your investment capital sits in escrow pending the results of a visa application, the proposed development would have to be delayed. This would deter our American investors. The project may not be completed or may not be as far advanced when you wish to sell your shares, affecting any capital appreciation.
We offer our properties to US citizens as well as immigrant investors. If your investment capital sits in escrow pending the results of a visa application, the proposed development would have to be delayed. This would deter our American investors and the project may not be completed or as far advanced when you wish to sell your shares, affecting any capital appreciation.
If you agree that we offer a sound investment then we require you to commit your capital as any other investor. If for some reason you do not receive your green card (I-526), we contract to refund your capital.
What is the best way to transfer funds into US Dollars?
Irrespective of charges, the exchange rate at high street banks makes them an expensive option. We recommend using a specialist foreign currency exchange company. Moneycorp, HiFX and Currencies Direct are popular choices but there are others. Please see our useful links.
NB: Neither American Life nor Taroa Investment Company, which manages sales of American Life investments, accept commissions from third parties.
Important tax considerations
The United States charges income tax on all US citizens and permanent residents based on worldwide income. Treaties and various exemptions eliminate some but not all of the risk of double taxation. Each state of the United States has its own tax system. All but four states raise revenue through state income tax. Investors should consider the tax effects of becoming a US resident before investing. As a general rule, if you are moving all of your assets to the US you will not have a problem with double taxation. If you will continue working or investing in your home country after moving to the US, a trip to your tax adviser is in order.
The EB-5 Immigration Process
Who are the ‘immediate family members’?
Your spouse and your unmarried children under the age of 21.
How do I submit my application for a green card?
The EB-5 visa is complex and it is essential for a satisfactory outcome that you use the services of a US immigration attorney. American Life has an outstanding success record of green card issuance for its investors and while it does not mind which firm you use, it does require the appointment of an attorney with appropriate EB-5 experience. Contact details of EB-5 specialist attorneys are available upon request.
NB: Neither American Life nor Taroa Investment Company, which manages sales of American Life investments, accept commissions from third parties.
What are the application procedures?
- Step 1) I-526 Immigrant investor status. File form I-526 Petition for Alien Entrepreneur with the California Service Center. This petition requests the CIS to certify the applicant and the investment as eligible for EB-5 visa status.
- Step 2) I-485 or Embassy interview. Upon approval of the I-526 petition, (a) if you are in the United States on a non-immigrant visa, you may apply for Adjustment of Status by sending form I-485 and supporting documents to the CIS regional processing center nearest your US residence; (b) if you live outside the US you must wait for notification from the Embassy in your home country to prepare documents for the visa interview.
- Step 3) Conditional Green Card. Upon approval at Step 2, you receive a form evidencing the approval as well as a travel document. You will also receive the temporary green card in the mail. If you are outside the US you must enter the country within six months of the date of the Embassy approval.
- Step 4) I-829 Permanent Residency (Removal of Conditions). After one year and nine months, your attorney will file for Removal of Conditions using Form I-829. This procedure enables the USCIS to verify that you have maintained your approved investment for the required two year period and that the project into which you invested has been started.
Where can I find a copy of the EB-5 law and regulations?
The steps above are described on the USCIS website – Green Card through Investment (Step 1), Adjustment of Status (Steps 2&3) or Consular Processing (Steps 2&3), and Permanent Residence for Entrepreneurs (Step 4). These pages will open in separate windows.
How long does the process take?
Processing times vary and, at present, you should assume six months, from the time your visa petition is filed with the USCIS, before you receive your conditional green card, though this time is sometimes shorter. Once conditions have been removed, a little over three years after investing, you may dispose of your investment. A guide:
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Processing of your I-526 petition at the California Processing Center
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3 months
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Processing at the National Visa Center, Washington DC and
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awaiting consulate interview
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3 months
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Total processing time to receive entry permit to collect green card
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6 months
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Application for I-829 (removal of conditions) after entering the US
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21 months
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Removal of conditions processing
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5 months
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Total time after emigrating
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26 months
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Total processing time from initial application to removal of conditions:
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32 months
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Five years after entering the USA with your green card you and your immediate family may apply for US citizenship. You may elect to have dual citizenship.
What documents must I prepare to process my visa petition?
You must prepare complete biographical information for each applicant and the principal applicant must prove the source of the investment funds. To prove the source of investment funds, USCIS requires five years of tax returns, five years of bank records, proof of ownership in any businesses, financial statements for each business and business licenses. The idea is to present a track record of an honest course of dealing. If your capital came from a specific transaction, such as sale of a house, mortgage, inheritance or gift, you must prove the transaction occurred by providing an official document such as a closing statement, contract or deed. Other documents may be required and vary on a case-by-case basis.
You must prepare complete biographical information for each applicant and the principal applicant must prove the source of the investment funds. To prove the source of investment funds, USCIS requires five years of tax returns, five years of bank records, proof of ownership in any businesses, financial statements for each business and business licenses. The idea is to present a track record of an honest course of dealing. If your capital came from a specific transaction, such as sale of a house, mortgage, inheritance or gift, you must prove the transaction occurred by providing an official document such as a closing statement, contract or deed. Other documents may be required and vary on a case-by-case basis.
American Life, Inc.
How long has American Life been in business?
The company was formed in 1996 to manage property investments for immigrant investors applying for an EB-5 visa which confers Permanent Residency. It is the most established company in the market.
From 1998 to 2003, when the program was not operating, American Life continued, except that it attracted investments from US citizens only. Today, it attracts investments from both the US and immigrant investors and the ratio is approximately 50/50.
If American Life runs out of money or goes bankrupt what happens to my investment?
Your investment is in a separate Limited Partnership which would not be financially vulnerable should American Life cease to exist. However, you and the other Limited Partners would require another company to manage the property. Taroa Investment Company would address this on your behalf, if you so wish.
How much property does the company manage?
American Life manages 34 buildings, totalling in excess of 2,300,000 sq ft, plus two additional undeveloped sites totalling 200,000 sq ft.
The company’s properties are mostly in SODO, which is ‘south of downtown’ Seattle and we have the largest property portfolio in the area after the Government and Port of Seattle.
Why should I choose American Life?
− Properties are freeholds with no debt.
− Income is paid monthly and includes rents as well as bank interest on cash deposits.
− More immigrant investors use American Life than any other Regional Center, by a significant margin.
− It is the only Regional Center to attract substantial funding from US citizens.
− No other Regional Center has a consistent record of returning income to its investors.
− Rental income, net of management charge, is typically 5% p.a.
− Early investors enjoy 12% income on their initial investment.
− As a successful property management company investors have a reasonable expectation of a profit on their investment.
− The company has sustained a 100% success rate for EB-5 visa applications and removal of conditions.
− We have a sales team in Seattle to sell your shares, once visa Conditions have been removed.
− Seattle has been voted the No 1 city for commercial property investment in 2009.
