February 2nd, 2012 |
 Over the past few months there have been a number of articles written that express concern about the dangers of excess office space in a number of cities throughout the USA.
A recent feature through Associated Press covered potential concerns over the development of the New York World Trade Center project. The article stated that tenants were still being sought for one of the buildings in the development. (link to article)
This is not the first report that has indicated, in the current economic climate, it is proving more challenging to fill leases for office complexes. This situation is not helped as leases come up for renewal in existing office complexes and tenants seek to negotiate lower rentals in the light of increasing availability and market forces.
A number of EB5 visa programs are based on new build commercial office facilities and some of these are totally dependent on 100% financing from EB5 visa applicants. Given current difficulties in obtaining alternative financing for commercial construction, some developers have turned to the EB5 visa program as the only means of raising the necessary funds. However, if office developments are starting construction without potential leases in place, EB5 visa applicants may have a number of questions that need answering, such as:-
• Without tenants in place will the necessary jobs be created? Without these jobs it is possible that the EB5 visa holder will not have conditions removed from their visa, (after two years). This could lead to potential deportation.
• If the project is completed and insufficient tenants are found, how easy will it be to get my $500,000 capital back in a reasonable timeframe? The exit strategy or return of the $500,000 capital is often a big unanswered question about EB5 visa financing.
• Is the project in an area where they may already be an over-supply of similar accommodation, which at best could negatively impact on potential rental income?
• How long before the office lease market is likely to recover in specific areas?
Unfortunately, potential EB5 visa applicants can find it very difficult to get full answers to these questions, particularly if they are reliant on the regional center or their sales agents to give an unbiased evaluation of the potential success or failure of a program.
Obtain independent and unbiased information on the EB5 visa from financial and legal experts contact chase@whicheb5.com or call +1-561-771-1330
|
| |
Tags: EB5 visa, exit strategy, WhichEB5
Posted in Immigration | No Comments » |
January 24th, 2012 |
 A couple of weeks ago we heard from a particular family who were looking at the EB5 visa as their best method of obtaining permanent residency in the USA. They had a number of questions to ask and during the course of our conversation it became clear they had learnt about a particular EB5 visa program through friends in their home country.
The regional center in question had strong contacts with this particular country but was a new and unproven center with no record of visa approvals. Unproven centers maybe a concern given there is often little statistical information to factor into due diligence considerations.
As first generation immigrants we can understand why sometimes potential immigrants place emphasis on working with people who come from their home country, perhaps on the basis that they have experience of the journey they are planning to take. However, looking at the regional center project this family was considering it became clear that they had not been given all the information necessary to make a judgment.
Apart from having no track record the regional center had other critical issues.
• The project in question may or may not have been a viable business proposition, from an immigration perspective it needed to satisfy certain standards including creating approved jobs. Failure to do so could lead to eventual deportation from the USA.
• The project had an ambiguous exit strategy. This raised questions such as when or indeed if they were likely to see the return of the $500,000 they would need to invest to make their EB5 visa application.
• It is also interesting to compare current processing times between various regional centers. We are aware of one long-established regional center that currently is having applications approved in six weeks where a number of new small and un-established centers are still waiting for their I-526 applications to be approved over a year later!
It could take several years before an EB5 visa holder realizes that they have made a bad decision in their choice of a regional center project.
Assuming an applicant does get approval for the visa it could be at least two years before they become aware of a problem and later find they have not been approved for the all-important I-829 (removal of conditions) petition. (This is required after two years and approval is dependent on the funds being invested in accordance with the original application and the creation of ten jobs as laid out under USCIS requirements)
In some cases it could be even longer, maybe five years, maybe ten years or longer before investors realize they may not see the return of some or all of their $500,000 investment. Bottom line, it is critical to get independent and impartial EB5 visa information when considering this visa.
|
| |
Tags: due diligence, eb5, EB5 visa, exit strategy, I-526, I-829, immigrant, immigrants, impartial information, permanent residency, regional center, removal of conditions, track record, USA, uscis, WhichEB5
Posted in Immigration | No Comments » |
January 17th, 2012 |
 For an increasing number of EB5 immigrant investors their analysis of the critical differences between EB5 Visa programs has meant the difference between the success they dreamt about when they first made their application several years ago and a really devastating experience. Many of these early pioneers have adjusted to life in the USA after permanently relocating their family, they have had conditions removed from the green card and have seen the return of their full $500,000 capital in a specific time frame.
However, a minority of EB5 investors who may have failed to carry out adequate due-diligence, or took poor advice and chose speculative, flawed or higher risk programs, failed to keep their green card or lost some or all of their $500,000 when their chosen EB5 project hit a problem, as a number have.
2012 is likely to see an increase in both these two very different scenarios, an ever-increasing number of families who five years ago obtained their EB5 visas and will now receive their $500,000 returned, and the unfortunate minority who fail to consolidate their visa status with the result that they could face deportation and the loss of some or all of their $500,000.
Worryingly, the largest group are those that have invested over the years, have had the conditions removed, and would like, but are unable to obtain, the return of their $500,000.
Too little attention has been paid to this increasing issue where a clearly defined and specific exit strategy was not laid out when these families committed to EB5 programs several years ago and for a mixture of reasons, including the economic performance of the USA, there is little likelihood for the foreseeable future they will see the return of their capital.
It is important, when comparing between a more speculative and risky EB5 visa program versus a more proven well thought program, to obtain independent impartial advice from specialists who have actually visited and reviewed regional center programs.
For more information on how to obtain independent EB5 visa advice contact Chase Brodsky at Which EB5 via email chase@whicheb5.com or by telephone +1-561-771-1330
+Stephen Parnell 
|
| |
Tags: EB5 visa, exit strategy, investors, USA
Posted in Immigration | No Comments » |
January 5th, 2012 |
EB5 Visa Exit Strategy (or) I Want My Money Back
An important aspect of investing in a regional center program is that the investor should have a well-defined exit strategy. However, the exit strategy cannot run afoul of the legal requirement under the EB-5 program that the investment be placed at risk without a guarantee; i.e., that there be no disguised redemption option to cash out before the conditions have been removed from the investor’s conditional permanent residence; and that the investment not be a loan disguised as an investment. The investor generally wants the fastest and easiest possible exit from the investment. However, one must bear in mind that USCIS’s policy requires that the investment be in place at least until the investor has removed the conditions from his conditional permanent residence. It is a legal requirement that the funds be placed at risk of partial or complete loss, just as any real business investment would be.
Tomorrow we conclude our latest series of: An Open Letter from an Experienced EB-5 Visa Attorney.
|
| |
Tags: attorney, conditional permanent residence, EB-5 Visa, exit strategy, uscis
Posted in Immigration | No Comments » |
December 28th, 2011 |
 Over the next seven days we will publish, in daily segments, an open letter from an experienced EB-5 Visa Attorney.
Subjects covered will include:
If you are considering using the EB-5 visa program in 2012 you should not miss any of this information.
Coming up tomorrow: What is a Regional Center?
+Stephen Parnell
|
| |
Tags: 2012, attorney, due diligence, eb-5, EB-5 Visa, exit strategy, immigrant investor, job creation, pilot program, regional center
Posted in Immigration | No Comments » |
October 13th, 2011 |
 Given the Regional Centers offering EB-5 visa programs face ever-increasing levels of competition it is not surprising that there are concerns about the lavish sales claims made by a number of these centers to gain competitive advantage.
We have for a number of years expressed concern about the information sometimes provided by certain centers and the promises made by some agents which at best can at times be economical with the truth.
We have had firsthand experience of a number of issues with different centers over the past few years when we have sought feedback from clients in various programs.
Responses have been varied and range from those very satisfied with all aspects of the program they chose to situations where some have expressed a number of concerns. One issue revolves around exit strategy or the return of the original $500,000 capital. In one case an agent for an established center has alluded to a possible exit strategy that apparently from those who have tried it is not as specified. Those exiting have found they may receive a lot less than their original $500,000.
Many who are starting the EB-5 process have found it useful to begin researching the EB-5 by reading the only published consumer guide on the EB-5 visa pilot program: Green Card via the Red Carpet.
|
| |
Tags: EB-5 Visa, exit strategy, facts, fiction, Green Card via the Red Carpet, lies, truth
Posted in Immigration | No Comments » |
October 12th, 2011 |
 One approach taken by potential applicants trying to differentiate the various Regional Center options is to try to undertake a statistical analysis of each regional center track record.
This approach requires a number of considerations as statistics do not always tell the whole story:-
- A well established regional center with a very high number of I-526 approvals, I-829 approvals and a record of returning the capital of earlier clients also has had I-829 rejections and has experienced problems on specific programs. It is important to know what lies behind these issues.
- A well established center, again with a high number of I-526 approvals and I-829 approvals has received a declining percentage of the overall EB-5 visa market over the past few years. Its traditional program model has been less favored since the economic and property downturn in the USA and this could impact on the centers exit strategy for return of applicants’ $500,000.
- Another well established center lays emphasis in its sales material with its ties to State Government. However, less emphasis is given to explain that the program is a private sector business and the exit strategy for the return of the funds is not tied to the State – in other words if the program hits problems the State is unlikely to step in and refund capital.
- A number of regional Centers sell the majority of their places to applicants from China. There have been a number of concerns expressed on selling practices by some agents in China which are worth considering including the fees paid to some Chinese agents. Problems resulting from this may not appear until the I-829 or exit strategy stage.
Many who are starting the EB-5 process have found it useful to begin researching the EB-5 by reading the only published consumer guide on the EB-5 visa pilot program: Green card via the Red Carpet.
For more information about how to choose an EB-5 visa program contact the experts at Which EB5 for a free in-depth consultation.
|
| |
Tags: china, EB-5 Visa, exit strategy, Green Card via the Red Carpet, I-526, I-829, regional center
Posted in Immigration | No Comments » |
September 14th, 2011 |
 When applying for an EB-5 visa and considering which Regional Center program to invest in, it really is important to consider how your requirements and circumstances may change over a five or six year period.
Circumstances can and do change and although you may be initially quite happy investing in a program that has no clear exit strategy you may feel very differently if your financial position changes and you want to cash in your investment more quickly than you originally planned.
Some of the EB-5 programs are, in reality, likely to be very difficult to cash in due to the way they have been set up, and having $500,000 locked away for an indefinite period can be far from an ideal situation.
Given these circumstances, an increasing percentage of EB-5 investors are opting for programs that have a specified fixed term investment period (usually between four and six years).
The reason for this was illustrated yesterday when we received a phone call from a gentleman who we last heard from over four years ago.
At that time he had decided to invest in a particular program. Although the program had provided him with his required visa and the removal of conditions (I-829), his circumstances had subsequently changed and he now requires the return of his $500,000. (We had originally pointed out that the program he had chosen did not have any set time period however, that particular Regional Center had attracted him due to its 100% track record) [at the time].
He has since discovered that there was no way he could obtain the return of his investment and had been advised that it could take many more years to be recovered due to the downturn in the US economy; (he had chosen a property based Regional center with no time period laid down for the return of his money).
He was apologetic about seeking our advice after not using our services in the first place however, given the situation he had fallen into there were few options left open to him and the Regional center he had chosen was being less than helpful.
It so very important if you are considering the EB-5 visa that you are given clear, impartial and independent advice into the positive and negative aspects of the various projects on offer. For EB-5 Visa advice at no charge please contact Chase Brodsky at Which EB5 who will be happy to set-up a free in-depth consultation for you with one of our senior partners.
|
| |
Tags: eb-5, EB-5 Visa, exit strategy, I-829, mistake, regional center, Which EB-5
Posted in Immigration | No Comments » |
April 5th, 2011 |
 There are many questions that you may need to ask when looking into the strengths and weaknesses of the various EB-5 programs and one question frequently asked is how important is the location of the various regional center programs?
With programs now available throughout much of the USA some of you may wonder if it is necessary to live nearby the program you chose. Many previous investors have felt it more important to select the most appropriate programs that match their requirements regardless of its location and regardless of where they intend to live. However, the location of a program does have certain implications as can be seen by the examples below.
- Some investors, particularly those who do not speak English, attach importance to a location they have heard of, for example New York, Los Angeles etc. Although from a marketing viewpoint familiarity with a name can provide reassurance, it may be far more important to consider other issues with a regional center program. The name alone will not guarantee I-526, I-829 or exit strategy success.
- Another example could be regional centers based in very remote rural locations. Although such a location can be an advantage in terms of Targeted Employment Areas it could be a disadvantage in terms of the exit strategy and getting your $500,000 capital back.
If you would like to discuss in more detail the implications of the regional center programs with us please contact us on info@WhichEB5.com or via phone at +1-561-771-1330
|
| |
Tags: eb-5, exit strategy, I-526, I-829, location, los angeles, New York, regional center, USA
Posted in Immigration | No Comments » |
March 30th, 2011 |
 Today we continue our investigation on issues that will be of concern if you are considering the EB-5 visa as your best option to achieve permanent residency for you and your family in the USA.
One of the most important points for many of you looking at this visa is the likelihood of getting your $500,000 back; this is generally referred to as the exit strategy.
Some regional centers are hard to tie down on their exit strategy although the question many of you ask is simple enough “When will I get my $500,000 back”.
The first point you need to consider is that although USCIS have authorized 130+ regional centers to offer programs for this visa, less than a handful have been operating long enough for the investment program to have come to an end so that investors can be repaid. However, there are important considerations that need to be taken into account when looking at exit strategies. A useful step is to look at those which specify a specific return date on your investment and those that are more ambiguous.
Some regional center programs operate fixed term programs. These are generally loan based and made to quasi government and blue chip companies with hopefully a well thought through strategy to protect the loans as far as possible. In these cases investors should be clear how long they are investing for and when specifically they should see the planned return of their investment. However, the rate of interest payable during the course of the loan is likely to be modest.
Some regional center programs offer a form of equity model where you are investing in a particular asset, this is often property. The type of property ranges from commercial buildings, leisure / ski resorts, shopping complexes etc. The intention of some of the equity types is to pay you interest and sometimes a profit when your investment is cashed in.
There may be a problem with some of the property equity type of investments in the current economic and property market in the USA if property prices continue to fall. In some cases it may be difficult to judge when the assets will be able to be cashed-in and how much the investors will get back. As an example if you are investing in a leisure resort (holidays, skiing, etc) your equity is in property and there are at least two important considerations; How close to the current true market price is that property valued at when you invest and how many years before property prices start to rise given the present outlook for property in much of the USA?
There are several important points regarding the few centers that have been operating long enough to have returned investors funds which we need to make you aware of so you are in possession of all the facts.
If you are considering the EB-5 visa regional center program more information can be obtained from Which EB5
|
| |
Tags: eb-5, equity, exit strategy, leisure, loan based, permanent residence, property, regional center, returned funds, shopping, ski resort, USA, uscis, visa
Posted in Immigration | No Comments » |
|
