If you're looking to invest in the EB-5 Program, you may we wondering if you should pick the best regional center or if you should focus on finding the best EB-5 project to invest in?
When it comes to deciding between going with the best regional center and the best EB-5 project it's important to remember that good regional centers can promote bad projects! With this in mind, your focus should be on finding the best EB-5 project to invest your capital into.
By focusing on finding the best EB-5 project, you may be saving yourself a lot of trouble. While, most people think of the regional center as the manager of the EB-5 project, this isn't always true. You may be surprised at the amount of regional centers that agree to arrangements where an outside party such as developer is brought in to manage the EB-5 project.
Therefore, it's so important to focus your due diligence on finding the best EB-5 project. Have a project looked over by a knowledgeable and experienced EB-5 attorney and a registered investment adviser.
Here are a few of the key points to look at when deciding on an EB-5 project:
- Business plan (type of project and projected job creation)
- Securities offering documents
- How many investors are already invested?
- Where is the EB-5 project located? Is it in a major city such as New York City, Los Angeles, San Francisco, Seattle or Miami?
- Is it an Exemplar EB-5 project? (a pre-approved EB-5 project)
- Background on the project's principals (reputation, track record, and project history)
- Risk involved (More conservative projects are better because the goal of EB-5 investors usually isn't to get a high return on their investment, it's to get their EB-5 applications approved so that they and their immediate family can obtain green cards.)
- Release of escrow
- Exit strategy
This list is by no means comprehensive and does not take the place of research. Conduct serious due diligence if the EB-5 Program interests you. Remember that a strong regional center is not always indicative of great EB-5 projects.