Investors can place their funds into a Federally Designated Regional Centers’ (FDRC). An FDRC is a Third party company that develops or undertakes multi-million dollar developments and utilizes EB5 investment capital as part of their funding for the projects. Most common projects are those that have the capability of hiring more than enough full-time employees to meet the EB5 investor’s 10 employee (per investor) requirement. Hotels, resorts, and manufacturing plant are some of the most common types of projects, as the construction, development and running of these businesses should produce 100’s of full-time employees. Most FDRC’s offer a minimum $500,000 investment (per investor) into each the project.
The FDRC company has to show that over the course of the project they will create 10 new jobs for every one investor.
Getting Your Investment Money Back – One of the benefits of investing in an FDRC is that projects often pay annual rate of returns, many of the programs are structured to enable you to “cash out” at the end of 5-7 years. There is no guarantee that an Investor will get his money back. Their for these projects come with a risk and should be investigated fully before choosing one.