When a new regional center is launched we often receive questions and requests for opinion from potential EB5 visa applicants on the regional center’s advertising and any potential red-flags.  A recent article in the Orlando Sentinel regarding the Lake Buena Vista resort regional center prompted the following questions:

Q. What do you know about the new regional centre near Orlando which appears in this article in the Orlando Sentinel?

Q. Is the fact that it is located in a well known tourist area a positive thing?

One of the Which EB5 senior partners had previously spent time at the center undertaking research and discovered several important issues which potential EB5 investors should be aware of, all of which we cover in depth at our personal briefing/consultations.

Here are a few of the issues which we uncovered.

The Fact that the center is in the tourist area of Central Florida may in certain ways be irrelevant; under the EB5 regional center program you can live anywhere in the United States regardless of which regional center program you invest in.

As a relatively new centre it is impossible to measure track record against other centers which have been proven over longer periods, in certain cases up to 5 years. Several Regional Centers have a 100% track record of visa petitions granted to investors.

Many of the proven centers only require an investment of $500,000 so you need to be aware why the investment at Buena Vista is double this at $1,000,000.

Many EB5 investors are concerned about the likelihood or otherwise of getting their investment back - we have looked extensively at the track record for condo developments in this area and our findings have thrown up some useful points.

It is interesting what the Orlando Sentinel has to say on this subject:

The article presents an interesting perspective and among the points it raises are:-

“So far, it [Lake Buena Vista Regional Center] has no takers for its million-dollar-visa offer. The recession and global financial turmoil have taken “a bit of a bite” from the program’s potential”.

“Though the resort says its offer has drawn interest from investors in Russia, China, Venezuela, Canada and elsewhere, it has not yet sold any of 105 slots set aside for investors. One issue it faces is that the federal program’s other EB-5 regional centers have lower initial investments because they are in a rural area or a high-unemployment urban area. To spur job growth in those situations, the government requires only $500,000 from the foreign investor seeking a green card”.

The article goes on to say:-

“Risk of bankruptcy?”

“Still, a million-dollar investment would carry risk”.

“A wave of condominium hotels hit the Orlando market at the height of the real-estate buying binge several years ago. Many of the proposed projects never left the planning stage. Of those that did materialize, some are already bankrupt, including the Lexington Orlando City-Place downtown and Sage Resorts near SeaWorld”.

If you would like further information on all available EB5 regional center options contact experienced independent EB5 professionals at Which EB5

You can read the entire Orlando Sentinel article here.