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How do I
decide which USA Investment Visa is right for me? Different
EB-5 programs
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There
are over seventeen different regional centers approved by the US
Government to offer the EB5 visa and the number is growing. The
marketing information they send out obviously focuses on their positive
points. Our managing partners regularly visit regional centers to keep
abreast of their various programs and to identify any concerns which
need highlighting. After undertaking research and visiting centers in
depth (not just the conducted tour!) we have a number of points of
concern that you should be aware of before committing to a particular
regional centre program. We can go through these important points at our briefing consultation with those of you registered through
us.
To date the vast majority of investors have opted for certain specific
programs, you need to understand why in certain circumstances, past
performance is not necessarily indicative of future performance. Many
investors have been concerned that their chosen option have a proven,
measurable track record; we explain how to identify this. There seems to
be a preference for freehold commercial properties or property secured
options and programs which can be financed in a number of ways including
applicants' pension funds. However, there are important implications
that applicants often fail to realize when considering which program is
right for them, we cover these questions with you at your free EB5
briefing.
Loans to government
agencies - Californian ex- military facilities
This program is based on a the conversion of a number of ex military
bases (army and air force) in California and directs its efforts at
financing projects such as infrastructure developments such as bridges,
roads etc. The investment period of this program is 6 years. The Centre
emphasizes the security factor as the invested funds are loaned to
various local and regional government agencies. This program appears
well established. The present area of focus, an airport investment
program, is intended to contribute to the successful regeneration of the
area, leading to a more diverse economy. Potential
reasons make this program of interest in specific circumstances, we also
have concerns that are rarely pointed out which we cover with you.
Various processing and administration costs add $30,000 bringing the
final investment to approximately $530,000, plus legal fees.
Warehouse Conversions
- 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 and warehouses, hotels and offices.
By buying a warehouse for example, dividing and refurbishing as 'out of
town' retail units, investors achieve two things. Increased indirect
employment, which should qualify the investor for the visa, and higher
rents to produce a return claimed to be between six and seven per cent
after refurbishment.
The area can be seen to be improving as buildings and the local rail
infrastructure are being upgraded. Costco, the giant retailer, has built
a store in the old industrial area, and Starbucks has offices there, a
major hotel is being built.
Each property designated under this investment program is a limited
partnership in which investors own a share proportionate to their
investment. The properties undergo a thorough refurbishment prior to
letting and rental checks are distributed monthly. The management
company looks after the whole process from acquisition through letting
and ongoing management
Investors can receive about $25,000 (5% per annum) after management
charges and under the visa rules are 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 this
point.
Various legal and processing costs add $35,000 bringing the final
investment to approximately $535,000.
The company has a range of legal and financial references relating to
its transactions, there are however some points of concern that are not
flagged up anywhere. You should be aware of these points which we cover
at our free EB5 briefings in the UK and USA.
This investment project has attracted both immigrants and non immigrants
(local Americans, which is an interesting factor that has both positive
and negative implications) for around ten years, and immigrants that
have opted for this program are able to recount their experiences, which
we feel is an important factor, however, there are certain implication
regarding this centre and it is important you are made aware of them.
It's recent projects have tended to be significantly larger than the
earlier projects which have a number of specific implications.
Business Loans
Eastern Sea Board City
This program based on a Regional Center in a major City on the eastern
seaboard directs its efforts at financing projects and developing
enterprises within targeted sectors, including hospitality and tourism,
trade, technology, higher education, and transportation. The investment
period of this program is 5 years which has a number of important
implications.
This program appears large and well established. The funds are secured
by property lien or corporate guarantee. The area appears to be
regenerating successfully leading to a more diverse economy. The program
has a waiting list with new openings being on a first come first served
basis. The down side is implications of the return - there are reasons
for this which we cover at our briefing consultation. Various legal and
processing costs add $30,000 bringing the final investment to
approximately $530,000 plus legal fees. The history of this centre is of
particular relevance which we cover with you – this centre is also
planning to expand to other States with projects coming up in Hawaii as
well as the film industry in Los Angeles California.
Vermont Resort
Development
This program is focused on a regional center developing an existing ski
resort/ golf facility in an area in 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 centre of
the complex which on completion will be sold as fractional ownerships.
This program raises some interesting questions relating to the area it
is in, competition, and time frame amongst other issues which are only
really answered when spending time at the existing complex after
attending our briefing consultation.
Various processing and administration costs add $55,000 bringing the
final investment to approximately $555,000 plus legal fees.
Renovation of major
City area devastated by hurricane – South
This program is focused on a regional centre 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. Unusually it sets out to combine
humanitarian aid in hurricane devastated area with for profit business
opportunities.
In this program, which began last spring, 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.
So far, the fund has attracted about 50 investors from South Korea,
China, Britain and the Middle East, according to the company. Nothing
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
Capital investment is to be targeted at:-
• Motion picture, film and art options.
• Lodging, hospitality and restaurants.
• Community based healthcare and mobile medical clinics.
• Family housing.
• Resort communities.
• Retail entertainment.
• Universities.
This program raises some interesting questions which we will cover in
more detail when we go through the options with you.
Various processing and administration costs add $60,000 bringing the
final investment to approximately $560,000 plus legal fees. The fund is
intended to distribute capital and profits when it is felt market
conditions are appropriate, this is an area we feel needs to be
identified in depth.
Hotel Development –
Washington DC
This program is presently being reviewed by us as there are a number of
issues which we feel it important to highlight.
Assisted housing development - Far north west
This program is presently being further reviewed by us as a number of
issues require clarification.
The project is the construction of assisted living facilities primarily
for Senior Citizens in a variety of accommodations offering various
levels of support to the residents. There is a planned exit strategy
after five years which may be of interest. The growth in an aging
population due to increasing numbers of the post war baby boomers
hitting retirement age makes this a particularly interesting Regional
Centre.
Various processing and administration costs add $50,000 bringing the
final investment to approximately $550,000 plus legal fees.
Agricultural meat
processing - mid west
This program has recently been 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.
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