What are some of the investment risks associated with EB-5?
The EB-5 program offers significant advantages for obtaining a green card, but it’s crucial to understand the inherent investment risks. Here’s how to make informed choices and minimize those risks:
Choose the Right Partner:
- Experience matters: Choose projects that are being managed and represented by an experienced Regional Center with a track record of success. While most Regional Centers are quick to advertise their success on the immigration side, it is important to assess their track record of returning funds to investors. Many Regional Centers have not been around long enough to go through several EB-5 cycles of investment and repayment.
Focus on Project Completion:
- Prioritize Fully-Financed Projects: Choose projects with secured financing to complete construction. This increases the likelihood of job creation, which is essential for both your green card and potential future returns on your investment.
Beware of Expedited Processing Claims:
- Prioritize Project Fundamentals over Speed: Don’t be swayed solely by promises of faster processing. Whether based in a rural area or an urban area, a strong project foundation is critical for success.
Choosing the Right Project Matters:
- Compare Project Milestones: With the same investment amount, you could choose a project just starting out or one nearing completion with job creation already underway. The latter offers a significantly better chance of achieving your EB-5 goals.
By carefully evaluating these factors you can make informed investment decisions within the EB-5 program, increasing your chances of success.
