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. June 22, 2014 www.aginskyconsulting.com 2

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. June 22, 2014 www.aginskyconsulting.com 3

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 otherwise; 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. June 22, 2014 www.aginskyconsulting.com 4

Process and Timing • Deposit payment • Company registration 2 weeks 9 • Choosing business, purchase offer and negotiations 3 • Closing the deal m 8 weeks o • Submitting EB-5 visa application n y • Interview at the US consulate or embassy t 4 weeks e h a s • Obtaining temporary “green card” for 2 years r • Application for permanent “green card” s 6 months • Obtaining permanent “green card” • Application for the US citizenship 2 years June 22, 2014 www.aginskyconsulting.com 5

EB-5 Direct Investment Vs. Regional Center June 22, 2014 www.aginskyconsulting.com 6

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. June 22, 2014 www.aginskyconsulting.com 7

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. June 22, 2014 www.aginskyconsulting.com 8

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. June 22, 2014 www.aginskyconsulting.com 9

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. June 22, 2014 www.aginskyconsulting.com 10

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. June 22, 2014 www.aginskyconsulting.com 11

Tangible Asset è Regional Center è Investor owns a minority shareholder interest (typically less than 1%) in a large project with other 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. June 22, 2014 www.aginskyconsulting.com 12

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. June 22, 2014 www.aginskyconsulting.com 13

Higher Returns è Regional Center returns range from 0% to 1.5% annually; è Direct Investment returns range from 12% to 30%. June 22, 2014 www.aginskyconsulting.com 14

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 3 rd party); è 100% transparency. è Perfect alignment of stakeholder’s interest June 22, 2014 www.aginskyconsulting.com 15

Direct Vs. Regional Center Summary Table Metrics Direct Investment Regional Center Business Control 100% control No control Number of Options Virtually unlimited Very limited Passive/Active/Hybrid Passive only Involvement Level (options) (no options) Transparency Full Limited Liquidity Liquid Illiquid Free and clear Tangible Asset Minority shareholder ownership of business Business Expansion Optional Not an option Returns 12% to 30% 0% to 1.5% Risk Low High June 22, 2014 www.aginskyconsulting.com 16

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 3 rd Party legal immigration services One-time fee of $15,000 to $20,000. § June 22, 2014 www.aginskyconsulting.com 17

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. June 22, 2014 www.aginskyconsulting.com 18

Example of Sold Property Gym 24 Hour Fitness è (Vancouver, Washington) Investment size: $9,920,000 è CAP (profitability): 8.57% è Net Operating Income: $850,500 è Construction date: 2008 è LEASE INFO Area: 1,44 hectares è Lessee: 24 Hour Fitness è Lease guarantor: 24 Hour Fitness USA, Inc. Lease area: 4181 square è è meters Lease duration: 15 years è Lease rate increase: 10% every 5 years è Parking: 203 parking slots è Lease termination date: August, 2023 è Lease type: NNN è June 22, 2014 www.aginskyconsulting.com 19

Example of Sold Business Commercial janitorial services è company 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 è obtain “green card”); High margin/low overhead business; è Low degree of technical expertise, making it ideal for an owner-operator. è June 22, 2014 www.aginskyconsulting.com 20

Contacts Email: info@aginskyconsulting.com Phone: +1 503.546.4049 Fax: +1 503.549.8990 Website: www.aginskycapital.com 411 NW Park Ave., Suite 402 Portland, OR 97209 June 22, 2014 www.aginskyconsulting.com 21