How can an investor save money on EB-5 fees?

You may be able to discuss the fees with the regional center you are considering for investment, but many times these fees are set and will be the same for all investors.

You may approach regional center projects directly to inquire about negotiating administrative fees, but it is unlikely that well-established regional centers will do that. Administrative fees are mostly used to cover the costs of attorney fees, counsel. economist fees, personnel, preparation of business documentation for the project, etc.

The administrative fee/syndication fee is the fee that the regional center charges to recoup the attorneys' fees, economists' fees, their staff salaries, overhead, etc., they incur to operate and find the proper EB-5 businesses or projects and prepare all the business documents to be EB-5 compliant. While they do pay some foreign immigration/migration agents the finder's fees, the administration fees are not totally used for this purposes. Further, the EB-5 investment has been found to be a sale of securities within the purview of the Security Exchange Commission; no one other than who has a license to sell securities may accept these commissions. Thus, it would be illegal for the regional center to negotiate lowering of their administration fees, which will be viewed by SEC as giving you, who does not have the investment broker's license, the commission.

There are no restrictions on an investor contacting a regional center directly, but not all regional centers will reduce the administrative/syndication fee in the event that there is no finder involved. You should check directly with each regional center as to their policy. Also, make sure that you completely read and understand all offering documents or you should hire an expert to review them for you and explain them to you before you sign anything.

Noone likes to pay fees or commissions, but perhaps the most important point is to focus on choosing a good project that means at least capital preservation and getting an approval. Some might discount, or cut fees, but it is like negotiating with the Mercedes dealer; you do not have much room with a good project. You might be, as they say, penny-wise, but not save anything.

The more established regional centers do not normally pay finder's fees and there are certainly issues associated with these fees being paid to lawyers. You are free to approach a regional center, but most will not negotiate the administrative fee.