What are the top 10 questions EB-5 investors ask regional centers?
In the last few years, the EB-5 Program has blown up in terms of popularity. There are so many project options nowadays for EB-5 investors that choosing just one can be a daunting task. Knowing what to look for in a project and regional center team, however, can help narrow down the choice.
Investing in the EB-5 Program is a big financial and time commitment; every potential investor will want answers to the following questions before they place their money into a project. EB-5 investors ask:
- How many jobs will the project create and are there buffer jobs? Are the jobs direct, indirect, induced, or a combination? In the event that problems arise, does the regional center have ways to create additional jobs?
- When will the EB-5 investors receive their money back? How does the regional center determine how much capital to return to the EB-5 investors? What is the regional center's exit strategy?
- How many EB-5 projects has the regional center completed?
- What are the regional center teams' qualifications? What are the qualifications of the project developer, if separate from the regional center? How many years of experience does the team have? What are their track-records on previous projects? Was there any financial misconduct?
- Is the project located in a TEA?
- What kind of senior loan and bridge financing does the regional center rely on?
- To-date, how many I-526 Petitions and I-829 Petitions have been approved, withdrawn or denied, and what were the reasons for them?
- What level of transparency does the regional center offer EB-5 investors? Do they provide regular status reports on project progress and goals?
- What are the administrative and management fees?
- For Chinese EB-5 investors, what is the regional center's redeployment strategy? Due to the visa backlog, investors from Mainland China need a carefully structured transaction so that their investment satisfies the program requirements.
For more information or for more questions EB-5 investors ask, send us a message.