EB-5 Investing: Guide

Key Considerations When Investing Through the EB-5 Program

Navigating EB-5: Understanding the Risks and How We Protect You

Investing through the EB-5 program is an exciting opportunity, offering a pathway to U.S. residency while supporting economic growth. However, like any significant investment, it comes with risks. Our role is to guide you through these waters, ensuring you’re well-informed and protected every step of the way.

1. Spotting potential problems in Regional Centers

Not all regional centres are created equal. Some might claim they’re approved by USCIS, but that doesn’t mean they’re endorsed by the government. Be wary of those promising guaranteed visas or sky-high returns. We thoroughly vet each centre to ensure you’re only dealing with legitimate, trustworthy entities.

2. Keeping Your Investments on Track

Your investment should be working towards creating jobs and meeting EB-5 requirements—not funding someone’s ventures. Unfortunately, misuse of funds does happen. That’s why we meticulously track where your money goes, ensuring it’s used exactly as promised.

3. Don’t Fall for False Promises

It’s easy to get caught up in the excitement, especially when projects boast about being the next big thing. But remember, not every claim you hear is backed by facts. We help you cut through the noise, verifying every detail, from permits to endorsements, so you can make informed decisions.

4. Independent Verification is Key

One of the biggest mistakes investors make is taking everything at face value. We encourage you to ask questions, dig deeper, and most importantly, let us do the heavy lifting. We verify every claim independently, from property values to construction permits, giving you peace of mind.

5. Understanding the Structure and Incentives

New ventures can be thrilling, but they come with risks, especially when they’re set up solely to secure EB-5 funds. Without the right incentives, developers might not have the drive to see the project through. We ensure that the projects we bring to you are structured with success in mind, with developers who have real skin in the game.

6. Common Warning Signs to Watch Out For

Anything that seems too good to be true, such as visas or promised returns, most likely is to be considered a warning. High, consistent returns are often a red flag in the EB-5 world. We help you identify these warning signs early, steering you clear of potential pitfalls.

How We Keep You Safe

Our team is dedicated to your success. From verifying regional centre designations to scrutinizing every document, we leave no stone unturned. We believe in transparency, providing you with all the information you need to make confident, informed decisions. Your investment is important to us, and we treat it with the care and diligence it deserves.

Steps to Protect Yourself

 Verify the Regional Center Designation

Verify the Regional Center Designation

USCIS List: Check the USCIS list of designated regional centres. Understand that designation does not mean endorsement of investments.

Review the documentation

Review the documentation

Scrutinize Documents: Obtain and review documents provided to USCIS by the regional centre, including Forms I-924 and I-924A.

Demand written investment information

Demand written investment information

Investment Memorandum: Ask for and review the investment offering memorandum. Research similar projects to understand the risks.

 Check Promoters’ Compensation

Check Promoters’ Compensation

Compensation Inquiry: Inquire about the benefits promoters receive for recommending investments.

Seek independent verification

Seek independent verification

Validate Claims: Confirm the validity of claims about construction permits, property values, and company endorsements.

Evaluate structural risks

Evaluate structural risks

Risk Structure: Understand the risk structure of new commercial enterprises and review loan documents.

Consider Developer Incentives

Consider Developer Incentives

Equity Investments: Assess whether developers have made equity investments in the project.