There are over 700 Regional Centers currently registered with the USCIS, not all of them have projects and quite a few have no clue about the EB-5 process and the rules & regulations as stipulated by the USCIS.
In fact the USCIS website categorically states:
“USCIS approval of an EB-5 regional center application does not in any way:
- Constitute USCIS endorsement of the activities of that regional center;
- Guarantee compliance with U.S. securities laws; or
- Minimize or eliminate risk to the investor.
Potential investors are encouraged to seek professional advice when making any investment decisions.“
Often times, an EB-5 investor is a seasoned, savvy financial investor who has done well for themselves and because of that are now in a comfortable position to invest $900,000 USD in the EB-5 program.
If an EB-5 investment was like a stock market investment, you would be able to do your market research and easily find out enough information about the stock that you are planning to invest in. There are enough market research reports that have detailed analysis with buy/sell/hold ratings on the stock. The company has to file quarterly financial reports which outline the revenue, EBITDA & profitability numbers in black and white.
But an EB-5 project is not a publicly traded company nor has anything to disclose by way of past financials as it is a new project. The only information available to you is the fancy marketing material given to you by the regional center. Any other information is not easily forthcoming, unless an advisor like myself meets with the project developers repeatedly and spends months interviewing and reviewing the project documents and progress of the project. There is simply no other way to measure the promises made by an EB-5 project. The EB-5 industry is not at all regulated like the stock market or publicly traded companies. There has been some action from the SEC recently to cut down fraud and the opaque nature of the regional centers, but regulation is still in a nascent stage of formulation. USCIS does not interfere with the Financial due diligence of an EB-5 project. Immigration lawyers are not trained to give advice on the fundamentals of an EB-5 project.
I myself am an investor in the EB-5 Visa program having completed the EB-5 process for myself and my family. I have also helped my brother successfully receive the conditional green card for his family. I received my I-526 approval in just 12 months, and received my conditional green card in just 16 months from the date of investment. There is no secret other than fanatical due diligence in selecting the right project out of a bunch of available projects at the time and an extremely well documented preparation of SOF to avoid any queries from the USCIS.
Going through the EB-5 process myself, I realized that the EB-5 industry was not mature enough for investors to invest in well regulated projects that have undergone a thorough project vetting from an independent 3rd party. Ask yourself, does the S&P/Moodys provide EB5 project ratings. Does a Research Analyst release research reports on EB5 projects like say, a report on how Amazon stock will do over the next 12 months. No!
After studying multiple EB5 projects for 2 years, I finally invested in a project that gave me comfort enough to invest. During this time, I went through lots of project PPMs and met with over 20 regional centers to understand their EB-5 project experience and knowledge. I immediately realized that a regional center does not always have the investors interest at heart. In order to maximize profitability, quite a few of the regional centers including the very well known big ones have tied up with questionable developers to invest EB-5 investors funds into questionable projects. The return on these investments are murky. There are quite a few EB-5 investments where investors are given back only a portion of their original investment once the project was complete.
I have been offering EB-5 investment advice from 2016 to qualified clients who are interested in the EB-5 program. My clients have received their I-526 approvals and have also received their conditional green cards.
If you are interested in finding out more about the program or are looking for a EB-5 project to invest in, contact us, Our services are totally free to you. We work with only the safest EB-5 projects which ensure full transparency of operations at all points of an EB-5 investors journey. We have personally visited the projects to evaluate and check the promises made by the regional center and the project developer. Only when we are fully satisfied with our due diligence, we recommend a project to our investors.