How do I decide which USA Investment Visa is right for me?
Different EB-5 programs
There are ever growing numbers of regional centers approved by the US Government (USCIS) to offer the EB-5 visa. The information sent out by these regional centers focuses on their positive points. WhichEB5 make in-depth visits to regional centers (not just the conducted tour) to keep up to date on their various programs and to identify any concerns which need highlighting. In recent months there has been a trend by some companies to openly use the EB-5 program as a way of raising capital from overseas to finance programs that cannot be financed from the normal sources of capital. This has significant implications that you need to be aware of.
We have a number of points of concern that you should be aware of before committing to any particular regional centre program. We go through these important points at our briefing/consultation with those of you registered with us. (We do not charge a fee).
A few years ago there seemed to be a preference for freehold commercial properties or property secured options. However, the economic and property downturns seem to have made more recent visa applicants somewhat more cautious with a greater focus on track record of the regional center operators, specific exit strategies, and return of capital investment.
Some programs seem to have a wow factor; an excitement, others by contrast may seem at first glance dull and boring. By looking below the surface of the different regional center programs we have found that all that glistens is not gold. There are important implications that applicants often fail to realize when considering which regional center program is right for them; we cover these questions with you at your free EB5 consultation/briefing. One very important point you need to understand is, why, in certain circumstances, past performance is not necessarily indicative of future results. Many EB5 investors have been concerned that their chosen option has a proven, measurable track record; we explain how to identify this and issues to be aware of.
Here are samples of the EB-5 regional center programs currently on offer
Loans to quasi-government development agencies
This program is based on the conversion and development of a number of ex-governmental facilities in California and directs its efforts at financing projects such as infrastructure developments - bridges, roads etc. The investment period of this program is generally between 5 to 6 years depending upon timing of entry. The Regional Center emphasizes the security factor as the invested funds are loaned to various local and regional governmental supported development agencies. The present area of focus is intended to contribute to the successful regeneration of the area leading to a more diverse economy. This program will be of interest in specific circumstances however, we also have concerns that are rarely pointed out which we can go over with you. The regional center administration costs add $30,000 bringing the final investment to $530,000, plus legal fees.
World renowned tourist location - resort development.
This program is unusual in the job creation model of its program when compared to the vast majority of regional centers; this may have both positive and negative implications. We have looked into the real estate implications of the program which, in the current real estate property market, are issues that need to be taken into consideration.
The program does offer an asset which can be sold at the end of the removal of conditions period. This may be an advantage compared to other programs. We have made several visits to this on-going project. In certain circumstances the program may be of interest however, there are concerns which we can go through with you. The regional center administration costs add $39,000 bringing the final investment to $539,000, including legal fees.
University Medical Facility.
This is a more recent but nevertheless interesting program due to the reputation and history of the companies involved. The program involves loan funding for a world renowned university medical center which will place it at the leading edge of medical research at a huge facility with a nationwide reputation. Certainly such a program, given the names involved and the type of loan investment, has been of interest and again like all programs we have identified a number of strengths and weaknesses. The regional center administration costs add $30,000 bringing the final investment to $530,000, plus legal fees.
Redevelopment Industrial Area North West USA
This program based in a major pacific coast City specializes in investment and management of commercial properties. Much of this property comprises factories, warehouses, hotels and offices. Each property designated under this investment program is a limited partnership in which investors own a share proportionate to their investment. The properties typically undergo refurbishment prior to letting and rental income, when obtained, is distributed to the investors. Investors may receive a return after management charges, and under the visa rules are in theory, entitled to sell approximately two years after receipt of their green card. However, there are other very important and significant factors you need to be aware of regarding these projects. Regional center administration costs typically add $35,000 bringing the final investment to $535,000 plus legal fees. There are certain factors regarding this center, it is important you are made aware of them. The recent projects have tended to be significantly larger than the earlier projects; this may have a number of specific implications.
Business Loans Eastern Sea Board
One company promotes various regional centers across the U.S., several of which are with government-affiliated organizations and all projects are based on a loan business model. The regional centers work in a variety of locations within a multitude of industries such as hospitality and tourism, higher education, transportation, film, technology and trade. The regional center is a large well-established company and promotes one of the largest running regional centers in the program. This program is large and established, although not marketed extensively outside China. The funds are typically secured by property lien or corporate guarantee. There are concerns on the number of investors from specific countries, the potential implications of this, and also the rate of the return - We can cover all of these points at your briefing/consultation. This Company has been operating long enough to return the full $500,000 to initial investors. Loans are for a five-year term. Currently, their administrative fee is $39,000 and legal fees are not covered with this fee. The history of this operation is of particular relevance which we cover with you – the company has expanded to a number of States
Vermont Resort Development
This program is focused on a regional center developing an existing ski resort in an area in close proximity to the Canadian border. The completed resort is intended to extend the season by offering year round facilities including a resort style indoor leisure/pool complex. The program has a number of stages and the present plans are based on the construction of an apartment/lodge style complex at the center of the complex which on completion will be sold as fractional ownership. This program raises some interesting questions relating to the area it is in, competition, and time frame among other issues. Our briefing/consultation will point out advantages and disadvantages.
The regional center administration costs add $55,000 bringing the final investment to $555,000 plus legal fees.
Renovation of major city area devastated by hurricane damage
This program is focused on a regional center program rebuilding, through various funds, a metropolitan area that was devastated by hurricane and flood damage. The program has a number of stages and the present plans are based on a five year funding arrangement with re-payment and any profit distribution at the end. In this program, money raised by immigrant investors and pooled as venture capital funds will be used to develop office buildings, hotels, restaurants and medical clinics in the city. Little has been built as yet, but with a 30-year contract with the city, the regional centre hopes to invest about $100 million in projects that it says could create thousands of jobs. This program raises some interesting questions which we will cover in more detail when we go through the options with you. Regional center administration costs add $60,000 bringing the final investment to $560,000 plus legal fees. The fund is intended to distribute capital and profits when it is felt market conditions are appropriate, this is a subject we feel needs to be covered in detail with you.
Assisted housing development - Pacific North West
The project involves the construction of assisted living facilities, primarily for senior citizens, in a variety of accommodations offering various levels of support to the residents. Following visits to this regional center and further research, there are a number of issues we cover at our briefing/consultation. Regional center administration costs add $50,000 bringing the final investment to $550,000 plus legal fees.
Agricultural
This program has recently been re -reviewed by us. One of the longer established centers it has had a particular focus on far-eastern investors. The focus on agricultural production has a number of significant implications which you need to be made aware of. The regional center has an extensive track record although individual programs it authorizes may have limited experience and there is some important feedback from trade magazines and local newspapers that we have been monitoring.
Redevelopment of a US Navy facility in New York
This regional center has attracted significant interest, particularly from China. The center has been visited by our senior partners and we have identified several points which will be of interest if you are looking at a New York based program. This program will be of interest in specific circumstances however, to make sure you have all the information you need regarding this project we strongly suggest a briefing/consultation. The regional center administration costs add $30,000 bringing the final investment to $530,000, plus legal fees.
Among concerns relating to a number centers we can discuss with you are:-
- Visa not granted
- Conditions not removed
- Losing all or part of your money
- Legal claims made by investors
- Negative local press
- Programs not completed and the job implications
- Centers at risk if sufficient funds are not attracted
The EB-5 Investor Green Card Visa regional center program is an excellent choice for those looking to quickly become a permanent resident of the United States. Which EB5 researches all regional centers; you make the same investment plus get all the independent advice of Which EB-5 at no cost to you.
To date, the vast majority of investors have opted for certain specific programs. The partners of Which EB5 have successfully advised over 150 families who subsequently obtained EB-5 visas and are now permanent residents in the USA.
For further information on the various regional centers, a copy of our radio interview, details of our book or discussions with one of our partners contact us by clicking the blue button below now.
Immigration Procedures under the EB-5 Immigrant Investor Pilot Program
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