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What kind of projects do EB-5 investors most commonly invest in?

I am working on getting investments for an EB5 project in Los Angeles, where I would be running a production company. I am having a lot of people tell me that my risks are too high. If the business is going to fail, we will know long before we ever fully use the $500k of the Chinese I''ve talked to (I can communicate in Chinese), most of them think it is too risky of a project to get involved in. I''m wondering, is there a better way to position the plan that will communicate lower risk? Or do you think this industry as a whole is what is scaring them?

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    The investor may find the project too risky because it may not meet the EB-5 job creation requirement. It is best to hire a business expert and an experienced EB-5 attorney to draft a comprehensive EB-5 compliant business plan.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    From an Immigration standpoint only, investors may be concerned that the project may not create the required amount of jobs necessary to allow them to obtain an approval of the I-526 or the I-829 to remove conditions on their permanent residency. Investors may also be concerned with the history of the project principals, favoring projects helmed by people familiar and experienced with the particular business over new entries. From an investment standpoint, we would lead a team of professionals that could assist the project with marketability and EB-5 compliance.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    I think it is the industry as a whole. Most EB-5 investors are businesspeople, so they understand financial risk. A smart businessperson will attempt to reduce risk as much as possible. If the risk is there (it must be there to some degree if it is to comply with the EB-5 law), then "communicating lower risk" sounds like you are not disclosing all of the potential risks in a deal. While there is a certain amount of due diligence any savvy investor will undertake, you, as the project, must be forthcoming and disclose all material information. You might want to engage the services of one of the fine professionals on the eb5investor.com website, who can advise you on various aspects of marketing in the EB-5 industry and what will be attractive to clients while still being above board in terms of your disclosures. Also, a good business plan writer with EB-5 experience and a marketing team might be just what you need to take the next step.

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