In order to immigrate to the United States through the EB-5 Program, a prospective investor must select a suitable EB-5 project investment.
Finding the right EB-5 project investment can feel overwhelming, but taking these steps will take the complexity out of the process.
Here are the steps to finding the most suitable EB-5 project investment for the prospective EB-5 visa investor:
Select an EB-5 agent with extensive experience with the EB-5 Program.
Find someone who makes EB-5 securities transactions. Look at the EB-5 agent's reputation and speak to former client's about the quality of the services they received.
Decide what your EB-5 investor's profile looks like.
What makes you an ideal candidate for the EB-5 Program? What kind of investor are you? Are you interested in the day-to-day management of the investment or would you rather have a regional center handle that? Any prospective EB-5 investor will want to understand their investment objectives and their risk tolerance.
Research EB-5 project investments that are EB-5 Program compliant.
Only spend time evaluating projects that are compliant with the United States Securities regulations. Next, narrow your search for potential projects by evaluating various industries that suit your investment needs.
Take a more in depth look at particular EB-5 offerings.
Once you've found a project in an industry you like, conduct due diligence into the project. While the EB-5 Program offers an excellent opportunity for foreign investors to obtain visas in exchange for investing in U.S. projects, there is some fraud in the program. It's important to spend the time reviewing key parts of the projects to ensure legitimacy.
Review the following documents carefully:
- Project offering memorandum;
- Partnership agreement;
- Background checks;
- Exit strategy;
- Corporate and capital structure;
- USCIS compliance documentation;
- Regional Center designation;
- Issuers disclosures and conflicts;
- Economic report (The EB-5 Project must create 10 jobs per investor or the investor won't receive unconditional residency);
- Targeted Employment Area letter (The EB-5 Project must prove the project is located in a TEA for the investor to be able to invest at the reduced amount of $500,000);
- Issuers Financial Projections;
- Documents that disclose use of project capital;
- Timelines for construction;
- Escrow account information;
- and, Permits.
This list is not exhaustive. There are more documents that will need review depending on the project. Speak with your agent, broker/dealer, or immigration attorney about additional documentation you may need.
- Visit the project.
Once you've selected a project that fits your objectives, financial goals, and risk tolerance, fly to the U.S. and visit the project site. You may also want to visit the regional center, too. Look at the team in charge of the project before you commit. Conduct research into their reputations, speak to former EB-5 investors, and find out if these EB-5 investors have received their green cards.
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