The EB-5 project is designed for foreign investors to allow them to invest $500,000 into the economy of the US in exchange for unconditional permanent residency.
When it comes to getting green cards for your family via EB 5 investment, it is highly essential to select a safe EB-5 project. In order to qualify for green cards, the main thing for investors is to get their investment refunded completely with a little bit of interest. Choosing the right project to meet these necessities is not challenging. However, investors have to spend a good amount of time to conduct thorough due diligence. Below are some of the important tips to select the right EB 5 project due diligence.
It is essential to check out the reputation of the project as well as a team of the regional center. Does the project developer have enough experience to complete similar projects to the one you are looking for? Does the regional center have a good amount of experience with such type of projects? Did they complete projects on time and within budget?
TEA stands for Targeted Employment Area. It is a rural area or region of high unemployment. EB 5 projects are usually located in these areas in order to qualify for a reduced investment amount of $500,000 from $1 million. When talking about proving that a project is located in a targeted employment area, a regional center needs to provide data and approval letters.
How do regional centers count job creation? Are these centers utilizing direct, indirect, as well as induced job creation? Does the EB 5 project have a job creation buffer so that all foreign investors will get ten requisite jobs to be qualified for their I-829 petition?
Does the regional center EB 5 project have pre-approval of the United States Citizenship and Immigration Services? Is the regional center designated by USCIS?
Where do different sources of funding come from? Does it have a loan? Do they have selected bridge loans? See how much come from project developer capital and construction loans as well.
The investor’s capital must remain at-risk. There is no surety that a foreign investor will get a refund on investment. Even if a project developer commits that the money will be refunded, the United States Citizenship and Immigration Services might refuse to petition of EB 5 investor. It is important for an EB-5 project to approach a lawyer of EB 5 immigration and check out what level of risk they are comfortable with.
A project of an investor might be at-risk, and there is no surety of ROI, an investor must examine the exit strategy of the project. Under specific situations, an EB 5 investor’s capital may be returned. It is essential to go over the exit sections in the offering memo with a qualified lawyer.
When the project is located in a targeted employment area, it is essential to check out the economic impact the project will have on the surrounding areas.
The procedure of EB 5 puts foreign investors on a strict time schedule. Knowing the financial structure of the project helps EB 5 investors to understand when and how their capital will be utilized. An attorney can review the loan documents and give the right advice on whether the project comes with the necessary funds, documents, resources, and experience in order to complete the project on time.
For more details, just get in touch with the right service provider and make the right EB 5 investment decision wisely.