EB-5 Regional Center selection tips you should know.

There are two programs within the EB-5 Program: the traditional EB-5 Program and the EB-5 Regional Center Program. Both programs are fairly complicated, but one has grown in popularity tremendously.

Each year, more and more foreign investors flock to the Regional Center Program. Here's why:The traditional EB-5 Program requires applicants to invest $1,000,000 in a commercial enterprise, actively manage the commercial enterprise, and create 10 direct jobs. The Regional Center Program, on the other hand, typically invests in high unemployment areas so applicants need only invest $500,000 instead of $1,000,000. The regional centers also manage the projects, taking the day-to-day management responsibilities away from the investors. Additionally, the Regional Center Program permits indirect and induced job creation, making it easier for EB-5 investors to fulfill the requirements of job creation. Unlike the traditional EB-5 Program, the Regional Center Program allows developers to pool EB-5 investors' capital giving them opportunities to create larger scale projects with more job creation potential.Selecting a regional center is a complicated and daunting task, but when more than 80% of EB-5 applicants are choosing to invest in regional centers, it may prove beneficial to look into the major regional center players. But how do you start looking? If you're thinking about investing in a regional center, consider these EB-5 regional center selection tips:

Is the regional center USCIS designated? Are they ready to provide you with all the necessary documents and forms? Is the regional center knowledgeable about the EB-5 Program? Is their focus on helping EB-5 investors attain green cards by creating the required number of jobs?♦
Look at the track record of the regional center. For best security, find a regional center that has experience. Although there is no guarantee that a regional center who performed well in the past will perform the same in the future, but it is much safer to invest with a regional center who has a track record as opposed to a regional center with no history of completing projects. Find out how many I-526 petitions approvals and I-829 petitions approvals the regional center has on record. How many projects have they completed? Are you interested in one of their projects that's the same if not closely similar to a project they completed in the recent past?♦
Do they have a solid marketing plan? Are you the first investor on board with their project? That could be extremely dangerous. An investor may face the unfortunate reality of sitting and waiting for a project to acquire enough capital to move forward. Additionally, an investor does not want to be the last investor on a project as those investors may not be credited with the required job creation if the project falls short of creating the amount of jobs they estimated they would.♦
Who is on your team? What expertise do they have? Is your regional center familiar with all the requirements of the EB-5 Program? Are they familiar with the process and deadlines? Does the management team have experience completing projects? Again conduct due diligence and find out their track record. Some of the strongest projects are developed by regional centers who only work on one specific type of project. They have completed these types of projects over and over again and know the industry inside and out. One huge concern for EB-5 investor is that a project may face an unforeseen snag in construction. That's why having an experienced team is critical. One small problem could turn into a huge problem for EB-5 investors if they their project faces delays and they miss application deadlines.♦
What is the regional center's plan and methodology for job creation. The creation of 10 direct, indirect or induced jobs is a requirement for the EB-5 Regional Center Program. Ideally, developers are more conservative in their approaches and estimation of job creation. If they are not, however, EB-5 investors risk not fulfilling their requirements and petition denial. Look into how many jobs the developers estimate the project will create and study their methods for coming up with the number.♦
Seek professionals to assist in selecting a regional center. Analyze agreements and documents. Find out the exit strategy. Find out if the regional center's success is tied to the project's performance.♦

There are no guarantees in the EB-5 Program. An EB-5 investor must place his or her capital in an at-risk investment. However, through due diligence, and speaking to the right professionals, risk can be greatly minimized.