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December 5th, 2011 |
Over the past few years several thousand families have relocated to the USA using the EB-5 immigrant investor visa. One advantage of this particular visa program is that it has, to date, always had places available and allows the entire family to get permanent residence (the applicant, spouse and unmarried children under 21).
The EB5 Visa (regional center program) requires you to invest $500,000 in what is termed a regional center program. The United States Citizenship and Immigration Service (USCIS) have authorized over 200 of these programs.
The type of investment programs vary greatly as does the time period for investment, the current minimum period being four years. As there are so many programs on offer it is not surprising many potential applicants seek independent advice before determining which regional center best matches their requirements. After all, if you make the right choice you stand to get permanent residency status and the return of your $500,000 capital in a reasonable timeframe. However, if you make the wrong choice, you and your family can face potential deportation and the loss of some or even all of your $500,000.
Finding the best independent EB5 advice will not always be as easy as you might expect given that some companies claiming to offer advice that is independent or impartial can be compromised by their close ties to a particular regional center. As an example, some companies undertake seminar programs in various parts of the world in partnership with specific regional centers. They may benefit from sales to the center either in receiving a marketing fee or commission for the number of sales made. In such circumstances you may need to question the impartiality of the advice given, are they likely to point out the weaknesses of a regional center they are closely working with? Are they likely to point out the advantages of other regional center programs that may actually offer you a better option?
Such arrangements can lead to concerns over a potential conflict of interest and the question; are you and your family receiving truly independent advice?
Sometimes a company claiming to be giving independent advice may be actually recommending one particular regional center; indeed it may be the one their founders used when they immigrated to the USA.
Again, in such a situation you are not obtaining the widest possible explanation of the alternatives, including the important positive and negative aspects. Instead you may be receiving a one-dimensional sales pitch to invest in that one regional center.
If you are wondering by now how you can discover the impartiality or otherwise of any consulting company you may use when looking at “What is the best way to choose an EB5 regional center” here are a few pointers as to questions you can ask?
- Since the consultancy company was formed how many of their clients have obtained EB5 visas?
- How many of those clients have obtained I-829 approval? (This is an important stage of the EB-5 process, when conditions are removed from the visa after two years).
- How many different Regional Center programs have their clients chosen? Is it just one or two or is there a much wider range of regional centers the consultancy has clients in?
- Have the consultancy partnered up with a particular regional center on joint sales and marketing trips to various countries?
- Does the company website or correspondence contain content indicating a partnership with one or more regional centers? Do phrases appear such as “I will send you a free information pack all about the Regional Center that we most like to work with”. This has specific implications that the consultancy may be working closely with one particular regional center of their choice rather than providing broader based information on the EB5 program.
- Does the company website contain photos of staff working jointly with a particular regional center at overseas seminars and exhibitions? Again this may raise cause for concern about a potential conflict of interest.
- Have the companies’ staff actually carried out research visits to a significant number of regional center projects? If so the visits need to be in-depth over several days looking into the background of programs.
- Does the company charge you a fee to give you advice? It is not necessary for you to pay a fee.
Immigrating to the USA with your family is a big decision and it absolutely imperative that you receive the best independent and impartial advice available. It is particularly important that you are not fooled into thinking you are receiving independent advice when the consultancy you are considering working with is working on behalf of only one regional center.
Independent EB-5 Visa advice and information is available from Which EB5 – Simply request EB5 information here
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Tags: conflict of interest, EB-5 Visa, eb5, EB5 visa, I-829, independent advice, independent eb5 advice, regional center, USA, uscis, What is the best way to choose an EB5 regional center
Posted in Immigration | No Comments » |
August 1st, 2011 |
Driving along the interstate yesterday and trying to find an interesting station to listen to on the car radio I came across a program hosted by some Real Estate Agents. As is usual for many Realtors they were forecasting an upturn in the US property market and were quoting a wide range of statistics in support of their argument.
Their opinion was particularly interesting as I had recently heard that one of the Agents, from a well known property based EB-5 Regional Center, was advising clients who were considering investing in one of their programs, to consider the investment as long term and by that they meant thirty years!
Although the forecast on the radio by the Realtors related to domestic housing and the Regional Center related to commercial property (and forecasts vary in different parts of the USA), there is clearly a big difference in opinion in the likely recovery, or otherwise of the US property market.
This discrepancy was particularly interesting as I had just visited a property based Regional Center program as I was mystified by the value they put on the equity against the actual value of properties being sold by existing owners (which were less than half the price). This simply did not make sense and looked a risky prospect for EB-5 clients.
Gary Schilling, The author of “The Age of De-leveraging” recently forecast a further drop in property values by 20%, due to the sheer amount of property inventory remaining on the market, with any eventual recovery being four to five years away.
Given the uncertainty of property equity in the current US market it is very important to obtain independent advice before committing yourself to a particular EB-5 Regional Center program. There are a number of programs currently being offered where we have concerns that they will actually not fully subscribe, this raises doubts as to whether they will go ahead. If they don’t, will the required ten jobs be created? If the jobs fail to be created one possible repercussion for that center’s clients could be deportation.
This and other issues are covered in the book Green Card via The Red Carpet which examines the advantages and disadvantages of Regional Centers. For more information contact Chase Brodsky at Which EB5
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Tags: actual value, eb-5, Gary Schilling, Green Card via the Red Carpet, independent advice, long term, programs, property, real estate agents, Realtors, regional center, The Age of De-leveraging, USA
Posted in Immigration | No Comments » |
February 21st, 2011 |
I recently spent a weekend looking around an emigration exhibition which bought back to me memories of my own family’s emigration process many years ago.
At a similar emigration exhibition all those years ago my family, as part of our research, were looking around and talking to the exhibitors searching for more information about our move to America.
We, like many others, made an assumption that the exhibition organizers had checked through the exhibitors’ backgrounds and we could assume that all would be well. However, that was clearly not the case as at least two of the exhibitors from that exhibition are now in prison or under investigation by US Federal authorities!
We remain concerned just how vulnerable those planning to immigrate to the USA can be, particularly potential immigrants failing to take independent advice on the EB-5 visa.
For complete details of our experience visiting the EB-5 regional centers please contact us here.
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Tags: advice, America, eb-5, exhibition, family, independent advice, seminars, USA
Posted in Immigration | No Comments » |
February 14th, 2011 |
As part of our ongoing research we have identified significant potential problems with a number of EB-5 regional center programs. We remain concerned that some families focus only on the legal implications of the EB-5 visa and seek minimal advice about the positives and negatives of the various regional centers or ask the wrong questions on the investment implications.
Even when looking at the investment side all too often clients start by asking which particular regional center program gives the highest return on their investment. This is not only the WRONG QUESTION TO ASK from a visa perspective, it can also be extremely dangerous.
With so many regional centers offering the EB5 visa program, over 130 at the latest count, it is inevitable issues would arise sooner or later particularly with some investors from counties where English is not their first language. Frequently these families are reliant on local sales agents representing one or two programs and it is possible that a significant number of investors do not realize the weaknesses of the program they are offered.
A center that has, according to a recent report, run into problems sold extensively in Asia. The legal advice these families obtained focused mainly on obtaining the visa but the majority of investors failed to obtain separate independent advice on any other options and the investment implications of the center in question.
The problem now is not only do they stand to lose at least some of their investment by making the wrong decision on their program of choice but also their right to stay in the USA if the project fails and the jobs are not created.
As part of our process we monitor programs closely to identify issues which is, as you can imagine, a full time occupation – being aware of what is happening on the ground is very important and impossible to do if you are several thousand miles away relying on a local sales agent or an attorney focused specifically on just the legal immigration question as opposed to the investment visa.
There are some excellent programs available and the EB5 visa is for many both the fastest and only option for permanent residency but obtaining impartial advice is very important. For more information contact Which EB5.
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Tags: Asia, dangerous, eb-5, eb5, independent advice, investment, problem, regional center, research, sales agents, USA, visa
Posted in Immigration | No Comments » |
January 21st, 2011 |
For many EB-5 immigrant investors the EB 5 visa has been a great success. They have permanently relocated their family to the USA on the visa, have had conditions removed and have seen the return of their full $500,000 investment in a specific time frame.
However, a small minority of EB-5 investors have either failed to carry out adequate due diligence or have taken poor advice and chose speculative, flawed or higher risk programs with the sad results that they failed to keep their visa or lost some or all of their $500,000 investment when a program hit a problem.
It is important when making a decision between a more speculative and risky EB-5 program against 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 simply register for complete EB5 visa program information.
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Tags: conditions removed, eb-5, failed, great success, immigrant investor, independent advice, investors, programs, projects, regional center, USA, visa
Posted in Immigration | No Comments » |
May 18th, 2010 |
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Every now and then, people considering the EB-5 program decide that they can find all the information they need on their own, without any help. As you might expect we do not recommend this course of action, particularly as impartial and experienced advice can be obtained for free.
In the next few articles we will cover the feedback from some families who have tried going it alone and subsequently sought our help when things have not gone as planned.
Today we focus on the experiences of families who have run into issues on the inspection tour.
On one occasion a gentleman took a 5000 mile flight and then drove over 300 miles to visit a couple of regional centers he had pre arranged to be shown around. On arriving at one of the centers he was informed that the head of the program was not available, so he waited for an eternity while someone else was found to show him round. During the tour it became clear they had not done this before and could not answer all his questions. Indeed their whole attitude seemed to be along the lines that he was lucky to be taking up their valuable time! Sometimes the little things count in life and after all that travelling he expected to be offered a drink of some sort, but was not even offered a glass of water – his view was that if you are considering investing $500,000 you expect somewhat better treatment.
Of course equally worrying is the familiarization/inspection trip where discourtesy is not the issue but the opposite, ie several hours of hard sell based on the skills of salesmanship rather than hard facts on the key aspects of the program ie Will I get my visa?, Will I keep my visa? Will I get all my money back? Unfortunately we have heard that some regional center visits may have taken this approach by focusing on the sales aspects rather than focusing on facts.
Ultimately by undertaking a center tour without taking advice from an independent, experienced and impartial adviser you may waste the cost of airfares, car hire and hotels etc but if you make the wrong decisions based on an inspection trip you not only risk losing $500000 but also potential deportation. You don’t need to do this alone. Contact us for support using the form on the right.
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Tags: eb-5, free, independent advice, information, regional center
Posted in Immigration | No Comments » |
October 30th, 2009 |
These type of programs focus on your $500,000 investment (in an approved regional center program) being used as part of a fixed term loan to a company, business or economic development agency, rather than being used as a direct investment in a specific building, resort or enterprise.
This type of program is becoming increasingly popular as many potential EB-5 visa investors are focusing on three issues:-
• Obtaining their green cards in a timely manner
• Having conditions removed after two years
• Maximizing the likelihood of the return of their $500,000
Effectively, rather than investing in programs such as commercial real estate, resorts and mixed fund investments which may not have a clear specific and dated exit strategy, an alternative is to invest in a regional center program which loans the funds to an infrastructure development project, such as developing roads, sewerage systems etc. The loan has a specific time period usually five or six years.
Such programs may have several advantages namely:-
• The exit strategy is clear and a defined end to your investment is indicated
• The projects may be with quasi public sector agencies, which in the current economic climate may be seen by some clients as a viable alternative to private companies.
• Some well structured programs use an advantageous job creation model – in effect this may reduce the worries posed by other models
However there are very few proven center currently operating this program, if you would like further details please contact Which EB-5 at: info@whicheb5.com
The EB-5 Investor Green Card regional center visa program is an excellent way to quickly become a permanent resident of the United States. Which EB5 researches regional centers; you make the same investment plus get all the independent advice of Which EB-5 at no cost to you.
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Tags: commercial real estate, eb-5, economic climate, economic development agency, exit stratergy, green card, independent advice, infrastructure, investor green card, investors, job creation, mixed fund investment, quasi public, regional center, resorts, specific time, visa, Which EB-5
Posted in Immigration | No Comments » |
October 28th, 2009 |
Once our clients have gone through the various regional center options and arrived at their preferred choice, some feel they want further independent advice from a chartered accountant and a business attorney to provide due diligence. Although our clients use a specialized immigration attorney to undertake the actual EB5 visa application for them, they sometimes also require the reassurance of an accountant looking over the financial viability of the program and legal reassurance from a business attorney looking at the legal side of the regional center business entity itself.
It can be an important step to retain a business attorney to examine the legal documents which govern the functioning of the EB-5 project entity (typically a limited partnership) in which you would be investing in the regional center. These include the subscription agreement, the partnership agreement, as well as comparing the provisions of these documents with the information presented in the offering prospectus.
Some regional center projects are based on the limited partnership lending money to private sector or government entities, and so then it would also be wise to have the business attorney examine the loan documents and the terms of the loan. Working in conjunction with a CPA (“Certified Public Accountant”) or business evaluator, to examine the creditworthiness of the borrower in the loan structure.
It can be useful to consult with a CPA or a business evaluator in assessing the security of the investment in the regional center’s project. Moreover, a CPA who is experienced in advising international clients can also help you to carry out your tax planning prior to becoming a U.S. tax resident, which typically occurs once the investor becomes a legal permanent resident (LPR). This is another important aspect of the investor’s planning to protect himself financially.
Until quite recently finding the expertise necessary to carry out these functions at a reasonable price has been difficult, particularly using specialist professionals who have previous experience of analyzing EB-5 regional center investments. However, WhichEB-5 have identified chartered accountants and business attorneys who have experience of working in this area for our EB-5 clients , if you would like further information simply send us an email with an outline of your thoughts and needs and we will respond immediately. Contact Which EB5 at info@WhichEB5.com
The EB-5 Investor Green Card regional center visa program is an excellent way to quickly become a permanent resident of the United States. Which EB5 researches regional centers; you make the same investment plus get all the independent advice of Which EB-5 at no cost to you.
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Tags: application, business attorney, certified public accountant, chartered accountant, CPA, due diligence, eb-5, eb-5 project, eb5, immigration attorney, independent advice, investments, legal permanent resident, limited partnership, LPR, options, regional center, successful, tax planning, visa, Which EB-5
Posted in Immigration | No Comments » |
July 9th, 2009 |
As part of our ongoing due diligence we recently identified significant potential problems on a particular EB5 program, this reinforces one of our ongoing concerns that some families focus only on the legal implications of the visa and seek minimal advice or ask the wrong questions on the investment implications.
All too often clients start by asking which particular program gives the highest investment return; this is not only the WRONG QUESTION TO ASK it can also be extremely dangerous.
With so many regional centers offering the EB-5 pilot program, up to 49 at the latest count, it is inevitable issues would arise sooner or later particularly with some investors from counties where English is not their first language. Frequently these families are reliant on local sales agents representing only one or two programs and it is possible that a significant number of investors do not realize the potential weaknesses of the program they entered.
A regional center that has, according to a recent report, run into problems, sold extensively in Asia with legal advice focused mainly on obtaining the visa. The majority of investors failed to obtain separate independent advice of any other options and the investment implications of the center in question. The problem now is not only do they stand to lose all or part of their $500,000 investment by making an inappropriate decision on their program of choice, but also their right to stay in the USA if the project fails and the jobs are not created.
As part of our due diligence process we monitor programs closely to identify issues. Being aware of what is happening at the regional centers is very important and pretty much impossible to do if you are several thousand miles away, possibly relying on a local sales agent or an attorney focused specifically on just the legal emigration question as opposed to the potential investment repercussions.
The potential problems with this particular center, as well as the earlier cases of alleged fraud by a visa consultant, (currently being investigated by the U.S. Secret Service) emphasize the importance of seeking independent advice before selecting a center. There are some excellent programs available and the EB5 visa is for many both the fastest and perhaps the only option for permanent residency, but obtaining impartial advice is critical.
For questions and answers on your personal EB-5 options and choices please contact Which EB5 directly.
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Tags: alledged fraud, consultant, eb-5, eb5, impartial, independent advice, investment return, permanent residence, pilot program, regional center, USA, visa, Which EB-5
Posted in Immigration | No Comments » |
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