Jay Peak EB-5 news

[thetrailboss]

I should have quoted the post, but a guy with one post in broken english said he paid 20.5 and was supposed to be paid out 306500. Its exactly what he said, and hence my lost in translation comment.

Was he saying that he was paid $20,500 a year with a final balloon payment of $306,500?

 

[mbedle]

I pretty sure the case was he was paid 20.5K per year with a final ballon payment. What is weird is that he seemed to be bitching about it, but agreed to it prior to signing up for the EB-5 program.

 

[AdironRider]

Was he saying that he was paid $20,500 a year with a final balloon payment of $306,500?

The way he wrote it yes, but considering the other grammar and spelling issues, I dont think he meant it that way.

Even still 20.5k a year with a balloon of 306.5k leads me to believe Jay is going to be in some deep shit when 9 years is up.

 

[VTKilarney]

I tried reading about the program today and there seems to be a lot of confusion about the actual program.

Two things are true about EB-5:
1) The money has to be "at risk", meaning that there is no assurance of getting your money back.
2) With 400+ projects competing for money, investors are gravitating toward projects with the least perceived risk. Even those with $500,000 to lose prefer the best chance of not losing it.

Care to guess how competitive a tennis center at Burke is to a real estate project in Manhattan?

 

[VTKilarney]

Even still 20.5k a year with a balloon of 306.5k leads me to believe Jay is going to be in some deep shit when 9 years is up.

If this is their model, and AFAICR there has been no evidence here to the contrary, that is definitely the $64,000 question. I'm not sure that they will be in "deep shit", though, since my understanding is that the investors can't foreclose like you could on a traditional loan. The biggest impact will be on future funding, which is why I am sure that they are scrambling to get their projects done before that time.

 

[thetrailboss]

Even still 20.5k a year with a balloon of 306.5k leads me to believe Jay is going to be in some deep shit when 9 years is up.

Yep. By then Stenger will be retired and in the Caribbean.

 

[fbrissette]

Even still 20.5k a year with a balloon of 306.5k leads me to believe Jay is going to be in some deep shit when 9 years is up.

Worse case scenario, they sell the tramhouse units as condos or shared ownership and make more than enough to cover the remaining 306.5 k.

 

[AdironRider]

Worse case scenario, they sell the tramhouse units as condos or shared ownership and make more than enough to cover the remaining 306.5 k.

Thats a big if. Residential units at hotels are nowhere near as popular as they were ten years ago. Who buys timeshares these days?

Thats still ponzi scheme level return promises. While these are at risk investments, theres still ramifications for making promises that large.

 

[BenedictGomez]

Worse case scenario, they sell the tramhouse units as condos or shared ownership and make more than enough to cover the remaining 306.5 k.

I'm not convinced that that math folks are assuming to be the case in the above broken English example is correct.....because it's friggin' insane.......but if it is......trust me, the above is NOT the "worst case scenario" on that puppy. That thing could potentially get all kinds of ugly if it's true (which I doubt it is).

 

[fbrissette]

I'm not convinced that that math folks are assuming to be the case in the above broken English example is correct.....because it's friggin' insane.......but if it is......trust me, the above is NOT the "worst case scenario" on that puppy. That thing could potentially get all kinds of ugly if it's true (which I doubt it is).

I have no first hand information about this buy back program but there is some good reading here that seems to confirm this.

http://britishexpats.com/forum/us-i...4/problems-amlife-eb5-investor-754864/page17/