+1-800-997-1228
Questions & Answers

What are the pros and cons of using brokers to attract EB-5 investors?

I am looking to fund my new company (not real estate) with the EB-5 program and have started my due diligence on the process. What is the best way as the actual business owner (not a reg center) to find or get access to qualified investors? I have a business plan and supporting info on my business just looking for the best and most reliable way to find investors. I have been contacted by several brokers offering their service for an upfront $10k - $35k fee. Should I stay away from the brokers? Thank you

Answers

  • Avatar

    Reza Rahbaran

    Immigration Attorney
    Answered on

    You should avoid the use of any U.S. broker, unless they are registered as a broker agent with the SEC. Foreign migration brokers are quite commonplace and there are many brokers that are competent. It would be best to consult an immigration attorney to guide you with broker agreements and realistic expectations.

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    Brokers can be pricey but also can be very helpful. Fees vary, I am always leary about upfront payments, I would probably encourage you to find brokers who will do it on a success fee basis.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    Unless you have some direct contacts or business associates abroad that can facilitate lining up of potential investors interested in investing in your project and EB-5 Immigrant visa, it makes sense to work with reputable, established brokers who have the ability to market and establish contacts with foreign investors.

  • Avatar

    Lei Jiang

    Immigration Attorney
    Answered on

    Brokers in the EB-5 world are normally necessary for finding investors. Still you should check their credentials, experience, and past success.

  • Avatar

    Philip H Teplen

    Immigration Attorney
    Answered on

    Brokers are not a good idea or even legal source of funds unless they are affiliated with a Broker Dealer registered with the SEC. We can likewise help you.

  • Avatar

    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes, stay away from brokers.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    There is no question that brokers are part of the EB-5 landscape. If they are going to do active marketing for you, it might be reasonable to consider paying them upfront for some of those costs. On the other hand, they charge EB-5 investor clients on their end, and they usually get a finder''s fee, which comes from the administration fee or the syndication fee paid in addition to the $500,000 investment. You should ask around and do the necessary due diligence to make sure you are dealing with a reputable agency.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.