Many potential investors would like to know what the EB-5 regional center investment success rate is so that they can get a good idea of whether or not the program is right for them. This, however, isn't the right approach, and here's why.
There is no typical EB-5 regional center investment success rate. There is a USCIS list of how many apply applications are made to the EB-5 Program each quarter and how many of these applications are approved, denied, or pending, but this doesn't exactly answer the real question.
Why can't you find a EB-5 regional center investment success rate?
There isn't one because every regional center has a different success rate. All EB-5 investment projects must be at-risk projects. It is recommended that every potential EB-5 investor conduct thorough due diligence into the type of project they're interest in.
For EB-5 investors, it's important to look at the type of EB-5 industry the project is in, the location of the project, and the background of the regional center.
- Certain industries appear to be stronger and safer investment options than other industries. Hotels appear to be one of the stronger industries for EB-5 projects. Cases of fraud seem to appear more in less popular industries such as obscure healthcare fields, oil, and ski-resorts.
- The location of the project is also important. In order to qualify for the reduced investment amount of $500,000, the EB-5 project must be located in a targeted employment area (TEA). This does not mean that the project has to be located in a remote location. Many TEAs have been located in major cities such as New York or Los Angeles. Cases of EB-5 fraud appear to show up in projects located in more remote areas of the country.
- An EB-5 investor must not only conduct due diligence on EB-5 projects, but also the regional center that is sponsoring them. Since every EB-5 project must be an at-risk project, every EB-5 investor must determine the amount of risk they can tolerate. It's also important to note that when researching regional centers, although successful past performance is a good indicator of a strong regional center, past success does not guarantee future success.
For more information or questions regarding your EB-5 investment interests, consult with an experienced EB-5 immigration attorney.