Few investment decisions in life matter as much as an EB-5 Project investment. Apart from risk assessment of the project financials, Your green card process depends on the timeliness of the project & the job creation requirements.
Investing in an EB-5 project is like investing in any other new business venture, there is the risk of losing it all. But in an Eb-5 scenario, the added risk is that, you might not even get the green card. So what can you do to mitigate your risks and make the right decision? For starters, do your due diligence.
EB-5 Projects are sponsored by a Regional Center, so in order for an EB-5 investor to invest in a project, he/she would have to go through a Regional center.
Some questions for you to ask when you are talking to the Regional center (RC).
- Ask for the Regional Center’s USCIS approval notice (I-924) and amendments (I-924A), if any.
- Does the project have an exemplar I-526 filed or approved?
- How many projects has the RC done in the past?
- How many I-526 petitions have they filed till date, what is the approval rate?
- Have they filed any I-829’s yet? What is the approval rate?
- Have they returned investors funds in any of the previous completed projects?
- Check the professional experience and background of the principals of the Regional Center and the Project. Google the project or the principal, check LinkedIn and other sources.
- Ensure the RC sends you the investment documents, including the private placement memorandum (PPM), subscription agreement, escrow agreement.
- Typically, Your investment doesn’t provide for any meaningful return in the first 5 years while you are awaiting your permanent green card. But read the PPM thoroughly to understand the return on investment & the Return of your investment and the General partner’s fees. The Regional Center typically is the General partner of the Project.
- When will the project return your investment? 5 years or 6, 7 or even 10 years. Yes, we have seen Projects where the borrower has the option to not pay back till 10 years!!!
- Your EB-5 investment should generate a minimum of 10 jobs, RC projects normally add a cushion to the 10 jobs requirement, check how much is the cushion for each of the projects you are evaluating.
There are many other things to be aware of, when selecting a Regional Center. Without a Veteran’s knowledge of these things, it’s very stressful for you to choose the right Project. Quite a few of the Regional Centers have excellent track records, but past performance is no indication or a guarantee for success in the future. After all, it is the success of the project that decides whether you get the green card. And No regional center will guarantee you that. And if they are, run away from them, because they are lying.
It helps for you to discuss your EB5 project selection process with other;s who have gone through the same process. My extensive EB-5 knowledge will aid you in your EB-5 process. I have discussed many projects with my clients and shared my own EB5 investment experience, Contact me to discussion your EB5 questions.