EB5 investors are not required to be fully involved in project management. The project developers contracted by the EB5 regional center manage the investment project daily. While they are not obligated to manage their investment project, they must understand its operation and their rights as investors. They should also keep an eye on the status of the EB-5 investment project to check if it is progressing as expected.
How To Minimize EB5 Investment Risk
The EB5 process entails some risk, and EB-5 Investor require professional advice to succeed. Here are a few tips on how to manage risks:
Hire a Qualified Immigration Attorney
The first step for an investor is to select an EB5 investment project. Immigration lawyers may assist in evaluating projects, focusing on those with the least amount of risk.
After making an EB5 investment, an investor must file form I-526, an immigrant petition by foreign investors. This long and complex visa petition must include specific information about the EB5 investment and business. It must also thoroughly track down the amount invested back to its source. This requirement can be challenging. Immigration lawyers may be invaluable in collecting source-of-fund documentation.
After approving the EB5 investor’s I-526 petition and nearing the end of their conditional residency period, investors must file form I-829. This is a petition by the investor to remove conditions on the status of a permanent resident. The petition must show that the EB5 investment capital was put towards a certified project and a minimum of ten jobs were created. Immigration lawyers can assist EB5 investors in gathering the necessary evidence and submitting their I-829 petitions on time.
Hire a Qualified Project Manager
A qualified project manager will have the experience and knowledge to navigate the complex EB5 process. They can spot and resolve any minor issues before they become major ones. They can offer helpful guidance to the investor, assisting them in making the best possible investment decisions.
A project manager will ensure that the project is on track and within the correct budget, and they can also coordinate with various stakeholders. They will also make sure the project meets all the EB5 program’s requirements. They can ensure the investor receives all the entitled benefits.
Conduct Due Diligence on Your Investment
When conducting background research, an investor must take several factors into account. They must assess the regional center’s track record of success with the USCIS. They must also check their capacity to oversee a project that will yield a return on investment. When researching a regional center, EB-5 Investor may consider the following questions:
Has the Regional Center Helped to Successfully Process Visa Petitions?
A regional center may be able to tell investors the number of earlier investors that have successfully filed visa petitions. Suppose any earlier investors were denied permanent residence. In that case, the center must provide reasonable grounds for those denials. They need to demonstrate that they have taken steps to avoid such problems in future petitions. Investors must remember that petitions may sometimes get denied for reasons unrelated to the regional center. These reasons may include when there is a problem with the origin of investment funds.
How Long Has the Regional Center Been Open for Business?
Investors must consider when the USCIS designated the regional center and if it has initially managed any projects. A regional center that has dealt with the distinctive issues involving EB5 projects and funds can account for the focus areas of the USCIS visa petition adjudicators. They will also have the skills and experience to deal with any issues.
Has USCIS Approved the Regional Center’s Project?
The first visa petition for an EB5 project comprises an extra level of the USCIS review of the project’s business strategy and an economic impact report. This may increase the petition’s adjudication time. An investor may thus gain from investing in a project after it has already undergone the first USCIS review. For potential investors, the regional center must confirm the project’s status. A project may require various licenses or permits. EB-5 Investor should ensure that these have been obtained. This is to avoid unnecessary delays after committing funds.
Is the Project Capable of Supporting the Required Number of Jobs?
To be eligible for an EB5 visa, each investor must demonstrate that their investment has created ten full-time jobs in the employment area. Regional center projects involving multiple investors must carefully time job creation. This is to guarantee that each investor gets an accurate number of jobs. Investors must carefully go over the project documentation.
Choose the Best EB5 Regional Center
An EB5 investor does not need to manage their investment projects. The EB-5 Investor is only responsible for making the initial investment and meeting the requirements of the EB5 program. The management of the investment project is the responsibility of the EB5 regional center or the business enterprise. Choose to work with a reliable regional center for any EB5 visa projects.
