How to Choose the Best EB-5 Projects to Invest In?

You’ll find a lot of EB5 projects that can become a success with the help of your investments, but which should you choose? First, you must meet specific investment requirements, but we’ll also cover:

• Evaluating a project
• Assessing location
• Much more

Understanding the EB5 Investment Requirements

All EB 5 Visa investment opportunities must meet the requirements outlined by the USCIS, which include:

• Investors must be 21 years old or older
• Investors must not have a criminal record
• Plans must create 10+ permanent, full-time jobs in the U.S.
• Capital investment of $800,000 – $1,050,000, depending on the type of investment

If you invest in a targeted employment area, you can invest as little as $800,000 to receive your visa. Projects for these areas can include infrastructure, but they traditionally include areas that are:

• Rural
• Experience high unemployment

A limited number of visas are available from each country per year, so if all visas have been approved for the year, your visa may not be approved.

Evaluating Project Developers

Projection evaluation will allow you to better understand which projects are worth investing in and offer the highest opportunity for approval. A few steps that you’ll want to follow to be sure that your investment will lead to visa approval are:

• Project approval. All projects must be approved by USCIS. Regional Center investments are another option.
• Review the project developer’s experience to ensure that they have the skills and experience to bring the project to fruition.

If you find a project developer that you know and trust, it will make the experience easier. You need to work with only the best developers who will complete projects on time and within budget.

Assessing Project Location

There are 600 regional centers to choose from, but many investors prefer to select projects in rural areas.  EB5 projects in rural areas require an investment of $800,000, but the project must be in an area where unemployment is high.

If you don’t mind the higher investment requirement, the location may not matter.

Analyzing Project Structure and Viability

What are the best EB5 projects? The projects that:

• Are well-planned
• Offer a chance to employ 10+ people full-time
• Secure adequate funding

You can invest in projects that have reports on the potential for growth and success already. If you find a viable project, it will need to meet the job creation and economic impact requirements, too.

Job Creation and Economic Impact

What is the likelihood of the project creating the required number of jobs? What is the projected economic impact of the project?

Whether you’re investing directly or in a Regional Center, the project must create 10 jobs. From an investor’s perspective, you want to ensure the project will provide an acceptable return and have a positive economic impact.

Risk Management and Mitigation

The EB 5 US visa for investors offers a path to permanent residency in the US, but it’s not without risk. 

Third-party due diligence is recommended to assess a project’s risks and strengths, including an evaluation of:

• The project’s viability
• Capital structure
• Job-creation potential
• Exit strategy
• The risk-mitigation strategies used by company leaders to protect investors
• Potential conflicts of interest, particularly between the developer and fund manager

If you’re considering rural projects, additional risks and considerations may apply. 

For example, rural projects often involve the development of raw land that lacks access to utilities such as electricity, water, sewer and roads. Establishing utilities in these areas can be very cost-prohibitive and increase risk. If EB-5 funds are being used for the development of utilities, caution is advised.

Comparing EB5 Projects

When selecting an EB 5 project, it’s important to weigh all of the factors above and whether the project will help you achieve your immigration goals. 

Compare each project you’re considering based on the developers involved, location, project structure, viability, job creation and risk management/mitigation.

Each of these factors will impact your final decision in different ways, depending on your goals and aspirations. But for most investors, the goal is to choose a viable project that will return their initial investment and will operate in a location they want to be in.

Seeking Professional Advice

Choosing an EB-5 project to invest in can be challenging. There are many factors to consider, and the process can, at times, feel overwhelming. 

It’s worth seeking professional advice and working with an agency like Shoora EB5 to guide you through the process.

Professionals who are familiar with the EB-5 program and have assisted other investors can offer sound guidance and advice that will inform your decision.

 

Pexels

In Conclusion

If you’re looking for a US visa for investors, EB-5 is the preferred option in most cases. However, finding the right investment project is crucial, and this can be a challenge for many investors. Use the guide above to identify projects that are worth investing in and consider working with a professional to guide you through the process.

Similar Stories