EB-5 Regional Center Offerings Evaluation

The immigration attorneys at Visawolf specialize in the EB-5 immigrant investor process and would be glad to assist you.

Transparency:

  • Who owns the hard assets?
  • Investor role in approving expenditures?
  • Investor access to bank records?
  • Investor access to visit project?

Security of the Investment

  • How much of the Investor’s capital is spent on hard assets (land, equipment, etc.)
  • Is the Investor identity shared among other EB-5 investors?
  • Do other project lenders have a higher priority in repayment?
  • What hard assets or cash has the RC contributed?
  • Is the project insured against business losses?

Fairness

  • What criteria are used to declare a distribution to the Investor?*
  • Priority of distribution: RC or Investor?
  • How long can the RC keep the money in escrow, while looking for other investors?
  • Does the RC take a share in profits in proportion to its contribution?

Business Risk

  • Qualifications of RC Management and Board of Directors, Board of Advisors
  • What is the worst case scenario?
  • Strategic Partners: Immigration Law Firm, Securities Law Firm, Auditors, Technical Experts
  • References from industry suppliers, customers, etc.

Job Creation (Immigration Risk)

  • Is Job Creation based on the investor’s own project, or a third party’s project?
  • Use the standard “RIMS 2” or “IMPLAN” job creation methodology, or an individual methodology?
  • Multiplier: based on “Output” or “Direct Employment”?
  • Real Estate Projects: Construction last > 2 years? Exclude land costs? No tenant job counting?
  • Jobs created in the NAICS code and location listed in RC Approval Letter?
  • Previous I-526 and I-829 approvals for the same project

Return of Capital**

  • Timing: Formula decides or RC decides when investors get repaid?
  • Amount: Formula decides or RC decides how much investors get repaid ?
  • Source: Where will money to repay come from?
  • Type: Asset in lieu of money? RC buy out option?

 

* An EB-5 Regional Center cannot guarantee any rate of return

** An EB-5 Regional Center cannot guarantee any return of capital