EB-5 Direct Investment Presentation Investments in the USA USA is - - PowerPoint PPT Presentation

EB-5 – Direct Investment Presentation

Investments in the USA

è USA is a stable economy with a sound legal system and ownership

rights that do not depend on investor’s nationality and citizenship;

è Investments in the USA have a high level of liquidity and

profitability:

§

Commercial real estate: 8 – 12% annual return

§

Direct investments: 15 – 35% annual return

è Possibility to obtain permanent residence in the USA (green card)

and citizenship;

è Real estate prices and multiples for business valuation are at their

record lows due to the economic crisis.

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ACG Services Suite

è Identification and assistance in the purchase of real estate with

existing 5-20 years leases and average annual returns of 8-12%;

è Identification and assistance in acquiring existing businesses with a

successful track record and average annual returns of 12-30%+;

è We conduct thorough analysis, market research, due diligence,

negotiations, deal structuring and other transaction related tasks;

è We actively manage the acquired asset post-acquisition and our

compensation is directly tied to its profitability.

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Obtaining the Green Card

è Investor needs to invest at least $500 thousand in a rural area or an

area with high unemployment; or a minimum of $1 million

• therwise;

è The new business must create at least 10 new American jobs and

sustain them for 2 years;

è Upon submitting relevant immigration documents, investor and his/

her family must undergo an income source verification and a criminal background check;

è Obtaining green card is not mandatory – many clients invest in to

the USA predominantly to diversify and preserve their capital.

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Process and Timing

2 weeks

• Deposit payment
• Company registration

8 weeks

• Choosing business, purchase offer and negotiations
• Closing the deal

4 weeks

• Submitting EB-5 visa application
• Interview at the US consulate or embassy

6 months

• Obtaining temporary “green card” for 2 years
• Application for permanent “green card”

2 years

• Obtaining permanent “green card”
• Application for the US citizenship

3 y e a r s 9 m

• n

t h s

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EB-5 Direct Investment Vs. Regional Center

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Business Control

è Regional Center

è Investor has NO control whatsoever;

è Direct Investment

è Investor has 100% control; è Investor retains final decision making power; è Investor can hire/fire management.

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Greater Number of Options

è Regional Centers are focused on a very

limited number of industries;

è Majority of the projects are commercial real

estate development;

è Direct Investment allows the investor to

invest in any industry he/she wants.

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Involvement Level

è Regional center

è Investor has NO choice; è Passive role;

è Direct Investment

è Investor has a choice; è Passive role; è Active role; è Hybrid role.

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Transparency

è Regional center

è Investor depends on third parties to access

information about his or her investment;

è Reported transparency and misrepresentation

issues.

è Direct Investment

è Investor has full direct access to all information

related to his or her investment.

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Liquidity

è Regional center

è Selling shares in a RC project is very difficult; è Given low returns shares often need to be sold at a

discount.

è Direct Investment

è A profitable business can be sold relatively easily

and often for a profit at the time of exit.

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Tangible Asset è Regional Center

è Investor owns a minority shareholder interest

(typically less than 1%) in a large project with

• ther competing interests;

è Shares may not convey ownership of underlying

asset;

è Direct Investment

è No confusion; è Investor owns the business free and clear.

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Global Business Diversification

è Direct Investment

è Investor has option of expanding the business in

their home country;

è Example: If the investor has a trucking company at

their home country, they can establish a subsidiary trucking company in the U.S. and qualify for the EB-5 green card at the same time.

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Higher Returns

è Regional Center returns range from 0% to 1.5%

annually;

è Direct Investment returns range from 12% to

30%.

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Reduced Risk

è Advantaged of Direct Investment

è Longstanding track record; è Cash flow from day 1; è Easy to demonstrate job creation; è Easy to assure required job creation; è No leverage (no collateral pledged

to a 3rd party);

è 100% transparency. è Perfect alignment of stakeholder’s interest

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Direct Vs. Regional Center Summary Table

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Metrics Direct Investment Regional Center Business Control 100% control No control Number of Options Virtually unlimited Very limited Involvement Level Passive/Active/Hybrid (options) Passive only (no options) Transparency Full Limited Liquidity Liquid Illiquid Tangible Asset Free and clear

• wnership of business

Minority shareholder Business Expansion Optional Not an option Returns 12% to 30% 0% to 1.5% Risk Low High

Service Fees

è Brokerage fee

§

2-6% - from the acquisition price of the property/business;

§

Final commission depends on the purchase price; è Asset management

§

Investor get first 3.5%, ACG get next 2%;

§

ACG and Investor share profit above 5.5%;

§

If asset is not profitable then ACG gets $0 or 0%;

§

So we are interested to maximize profits of the asset managed;

§

At any time, Investor can terminate the management agreement and either engage another professional management firm or manage the business by himself/herself; è 3rd Party legal immigration services

§

One-time fee of $15,000 to $20,000.

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Aginsky Consulting Group Company Profile

è 13 years of successful track record of international investments, M&A,

and business development;

è Broker licenses to sell properties and businesses in various states such

as Florida, California, Oregon, and Washington;

è Experienced professionals with MBA from top US universities (Harvard,

Columbia, Vanderbilt, Thunderbird, etc.);

è Multilingual staff fluent in English, Russian, Spanish, Hindi, Chinese and

French;

è In spotlight of leading international media; è Global presence, with satellite offices on the West and East coasts of

the USA.

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Example of Sold Property

è

Gym 24 Hour Fitness (Vancouver, Washington)

è

Investment size: $9,920,000

è

CAP (profitability): 8.57%

è

Net Operating Income: $850,500

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è

Construction date: 2008

è

Area: 1,44 hectares

è

Lease area: 4181 square meters

è

Parking: 203 parking slots LEASE INFO

è

Lessee: 24 Hour Fitness

è

Lease guarantor: 24 Hour Fitness USA, Inc.

è

Lease duration: 15 years

è

Lease rate increase: 10% every 5 years

è

Lease termination date: August, 2023

è

Lease type: NNN

Example of Sold Business

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è

Commercial janitorial services company

è

Investment size: $1,500,000

è

Profitability: 27%

è

Net Operating Income: $400,000

è

Stable, predictable income flow (more than 98% of business comes from contract clients);

è

Labor-intensive (easy to create 10 new jobs to satisfy USCIS requirements for EB-5 visa and to

• btain “green card”);

è

High margin/low overhead business;

è

Low degree of technical expertise, making it ideal for an owner-operator.

Contacts

Email: info@aginskyconsulting.com Phone: +1 503.546.4049 Fax: +1 503.549.8990 Website: www.aginskycapital.com

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411 NW Park Ave., Suite 402 Portland, OR 97209