What are desirable EB-5 regional center characteristics?
These are 4 EB-5 regional center characteristics investors look for:
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Proven Job Creation Methodology
To successfully obtain a lawful permanent residency, an EB-5 investor's investment must create 10 jobs for qualified U.S. workers. A competitive regional center's projects will utilize direct as well as indirect job creation. Oftentimes, EB-5 investors need the jobs to be created at the beginning of the investment, so regional centers that count construction jobs may have an advantage over regional center's that focus on operational jobs. A strong regional center project will create jobs that are easy to account for and backed with contractual agreements. They will also have job creation buffers to ensure that their investor's requirements will be met.
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Low Risk Investments
Investors look to invest in projects that minimize as much risk as possible while still maintaining the at-risk status for EB-5 Program purposes. Finding a reliable or "safe" investment that will accomplish an investor's EB-5 goals and return their original investment capital is a priority.Finding a regional center with a proven track-record and strong reputation is essential. Often times, a regional center will secure their investments through a combination of interests. One of the most important steps an EB-5 investor can take is to conduct due diligence on the regional center, the project, and the project team. Transparency is key; a good regional center will provide investors access to records.Hire an immigration attorney to review all the project's contracts, documents, and reports.
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Defined Exit Strategy
Will you get your money back? That's the question all EB-5 investors want to know. EB-5 investors do not usually get to choose their exit strategy, but they can learn about each type and the benefits and pitfalls involved. An EB-5 investor should understand all of their options.
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Investor-Minded
The potential capital a developer could raising using the EB-5 Program leads many woefully under qualified teams to seek this type of funding without understanding the complexities and nuances of the program. EB-5 investors must find a regional center with knowledge and experience of the program and who has the EB-5 investor's goals in mind. The primary goal for investors is to successfully immigrate and attain green cards for themselves and their spouse and children. Many factors show that a regional center understands the needs of the EB-5 investor. These include:
- A strong job creation methodology and job buffer
- A project located in a targeted employment area (TEA)
- Maintaining a project "at-risk" for the necessary period of time
- Return of the investor's original capital investment
For more information about EB-5 regional centers' characteristics to look for, send us a message.