It is interesting to look beyond the headlines used to promote regional center programs.

Here are some example headlines we found and the reasons you need to explore deeper to expose ALL the details before you choose a regional center for your EB-5 visa.

1.    “The only Designated Regional Center in the U.S. controlled and supervised by State Government.”

The Regional Center investments that operate under the banner of a state can sometimes confuse prospective investors in terms of the implications of this status. For example, has the “State Government” any responsibility for repayment of the investment?  Some investors assume such designation may offer a safety net. Another question might be: What role does the state government play in the exit strategy regarding the then value of the investment?

Some regional centers, at different times, have made this claim. One program that operated under a State banner is reportedly the subject of litigation. This could raise raises questions as to how far the “state” supervised the program.

2.    “A 100% success record for EB-5 Visa approval and faster approval times.”

Many centers have a 100% successful track record, at least at I-526 stage. As regards faster approval times; centers generally get approvals within the USCIS average time lines however, for specific reasons relating to “Requests for Further Evidence” RFEs, and the nature of some programs, some centers have had longer approval times.

3.    “In 2009, a total of 4,218 wealthy investors from outside the U.S. successfully applied for and received an EB-5 visa. But many are left asking what has accounted for the recent interest the program has been receiving”?

Firstly a few points regarding these figures which may seem a little pedantic but are important for reasons that can be explained.

The figure quoted includes the spouse and children of the investors; it does not mean there were actually 4218 individual investments in regional centers.  -  Many investors have a spouse and at least one child so the number of actual investors is nearer a third of the total number of visas. Secondly, the figure for 2009 contains a substantial number who invested in 2008; delays in processing carried these over into 2009.

The main change to be aware of in the figures for 2009 is actually the nationality of investors, with a greater proportion of Chinese investors in particular. China has seen a significant sales focus by a number of regional centers and their agents based in China. This has meant certain programs have mainly Chinese investors whose particular motivation and awareness may have implications.

4.    “The regional center returned my investment in three years.”

Three years is generally unrealistic given current review times. That is unless the client is selling out at the moment their I-829 petition is approved. This could be extremely dangerous

Andrew Bartlett and Stephen Parnell are authors of Green Card via the Red Carpet. You can read excerpts of the book at our book website and/or contact the authors via Which EB5.