Is Moderno Porcelain Works a Good E2/ EB5 Visa Business?
Moderno Porcelain Works: An excellent business opportunity. Read this article to learn how to obtain your E-2 Visa.
Written by
Visa Franchise
Published on
4 Mar 2022
Table of Contents:
This article is based on a video originally recorded on Visa Franchise Youtube Channel
Moderno Porcelain Works offers an EB-5 and E-2 visa investor program through their licensed business model.
Moderno is one of a few companies solely dedicated to porcelain. They use state-of-the-art machinery to cut and fabricate porcelain panels and bring jobs to the economy on both the production and installation side of the business. The company typically installed its porcelain panels in commercial buildings such as offices and conference rooms.
How to obtain an Investor Visa in the U.S.
Moderno’s investor visa program is offered by Houston EB5, Texas-based immigration, and relocation agency. Moderno boasts to be one of the few operational business models in the EB-5 industry ready to process direct investments for EB-5. The company enables investors with high liquid net worth to pursue legal status with a mature business model, and Moderno is their primary offering.
Houston EB5 was founded by Roberto Contreras Sr. in 2011, who also came to the United States with an EB5 Visa. Although Moderno Porcelain Works is a relatively new company (founded in 2019), the principals of Moderno have decades of experience.
As an EB-5 investor in Moderno, you would take ownership in a manufacturing company that specializes in installing luxury porcelain fixtures.
Additionally, many residential customers install porcelain in their bathrooms and kitchens. This unique product is in demand across the US but takes a very particular operational approach to manufacture and install, which is why Moderno’s products and services would succeed in almost any market. The company is also doing remarkable work in their area of expertise, with the Moderno Porcelain Works of Houston receiving a 5-star rating on Google Reviews. Customers regard Moderno’s work as very beautiful, but also celebrate the friendly service from employees.
PRODUCT |
AVERAGE PRICE (Installed) | LEAD TIME |
|---|---|---|
| Moderno Porcelain | $40-$65 | 1-7 Days |
| Laminate | $29-$45 | 10-16 Days |
| Granite | $46-$79 | 18-22 Days |
| Quartz | $52-$84 | 18-22 Days |
| Porcelain | $58-$96 | 18-22 Days |
| Marble | $80-$110 | 18-22 Days |
Houston EB5’s Moderno porcelain works investment differs from other franchise opportunities
Many franchises offer the opportunity to own/ run a business by paying a franchise fee and royalty percentages to the parent franchisor in exchange for brand awareness and ongoing support. Many franchise opportunities allow for an investor looking for permanent residence to operate a profitable franchise that services the local economy.
The current investment requirements for EB-5 opportunities are currently established at $500,000 with evidence of at least 10 jobs being created. For the Moderno program, however, investors will spend an estimated total project cost of about $3 million divided between multiple investors ($600,000 + admin fees each).
This amount is higher than the baseline of $500,000, but the opportunity creates many more jobs in a high-demand area. The result of this is a higher chance of being granted an EB-5 visa. It can be difficult to create 10+ jobs at the $500,000 level, especially given the labor shortage suffered by the U.S. economy in 2021/22.
Learn how to invest in Moderno porcelain works
As of August 2021, Houston EB5 was seeking investors for the Moderno Los Angeles & Denver HUBS. Here are the key terms to the project:
- $600,000 investment, $70,000 administrative fee
- 4% Preferred Return paid annually in years 1-2, $24,000 per year, $48,000 total
- 5% Preferred Return paid annually in years 3-5, $30,000 per year, $90,000 total
- 25% Share in Project’s Profit Distributions
- Only 4 spaces for investors per HUB
- Direct Equity Shareholder in Company
Visa Franchise generally advises against any opportunity that offers a ‘guaranteed’ or ‘preferred return’. If the business has trouble, as was the case for many businesses during the COVID-19 pandemic, these guarantees/ returns often are not honored.
Moderno offers multiple Visa options depending on the possibility of investment
There is also an E-2 visa option for $300,000 total ($250,000 + $50,000 admin fee). The E-2 visa licensees specialize in the installation of high-quality porcelain surfaces in the residential and commercial markets (as opposed to manufacturing). Moderno recently increased the E-2 visa investment amount and admin fee for two main reasons:
- To ensure that the substantial investment requirement is more easily met (generally higher investments are easier to meet this E-2 visa requirement).
- To continue to grow responsibly, they needed to increase their administrative fees to cover our overhead expenses. They plan to hire more staff to be able to handle prospective E-2 visa licensees.
Moderno’s E-2 visa program has proven to be popular over the last couple of years. They boost no denials as of May 2021 from over 35 E2 visa investors.
How Moderno porcelain works Franchise operates
Moderno runs its operations differently than a franchise, where the immigrant investor owns 100% of the business. Investors and the parent company, Houston EB-5, share in the operations and profits jointly. On Moderno Porcelain Works website, the company explains that investing in the Moderno program allows for you to invest in the program and relocate elsewhere (important to consult with an immigration attorney on this point).
If investors get the Moderno program off the ground, they can live in a city outside their investment area and let the business run under Moderno’s supervision. For investors with enough capital, looking for a hands-off approach to Visa investing, Moderno Porcelain may serve as an opportunity to relocate to the US.
Get to know the Focused Employment Areas of the Moderno Franchise program
Moderno is headquartered in Houston, TX. But has opened operations in Miami, FL, Central TX, Twin Cities, MN, Dallas, TX and, San Diego, CA. They have also announced they would be opening locations in Orlando, FL, Los Angeles, CA, Phoenix, AZ, and Atlanta, GA. Currently, most Moderno Porcelain locations revolve around urban areas, but can also be opened in rural areas in high employment demand. Targeted Employment Areas designed The Moderno program, which require a lower initial investment in an area that can benefit from new jobs.
Before you invest in a Moderno Program, it is important to speak with at least 5 existing licensing partners. Then evaluate other options for your E2 visa or EB5 visa. For questions to ask the licensees, click here.
Looking for support for your investor visa business search/ analysis?
At Visa Franchise, we strive to deliver you accurate business insights and help you translate your business aspirations into success. Read more about our service offerings here, or reach out to us to schedule your US business consultation today!
Latest
From the blog
The latest industry news, interviews, technologies, and resources.
View all posts