There are over
seventeen different regional centres approved by the US Government to
offer the EB5 visa and the number is growing. The marketing information
they send out obviously focuses on their positive points. Our managing
partners regularly visit regional centres to keep abreast of their
various programmes and to identify any concerns which need highlighting.
After undertaking research and visiting centres in depth (not just the
conducted tour!) we have a number of points of concern that you should
be aware of before committing to a particular regional centre programme.
We can go through these important points with you at our briefing
consultation with those of you registered through us.
To date the vast majority of investors have opted for certain specific programmes,
you need to understand why in certain circumstances, past performance is
not neccesarily indicative of future performance. Many investors have been concerned that
their chosen option have a proven, measurable track record; we explain
how to identify this. There seems to be a preference for freehold commercial properties or property secured options and programmes which can be financed in a number of ways including applicants'
pension funds. However, there are important implications that applicants often fail to realise when considering which
programme is right for them, we cover these questions with you at your
free EB5 briefing.
Loans to
government agencies - Californian ex- military facilities
This programme is based on a
the conversion of a number of ex military bases (army and air force) in
California and directs its efforts at financing projects such as
infrastructure developments such as bridges, roads etc. The investment
period of this program is 6 years. The Centre emphasizes the security
factor as the invested funds are loaned
to various local and regional government agencies. This programme
appears well established. The present area of focus, an airport
investment program, is intended to contribute to the successful
regeneration of the area, leading to a more diverse economy.
Potential
reasons make this programme of interest in specific circumstances, we
also have concerns that are rarely pointed out which we cover with you.
Various processing and administration costs add $45,000 bringing the
final investment to approximately $545,000, plus legal fees.
Warehouse conversions Redevelopment
Industrial Area North West USA
This programme based in a major pacific coast City specialises in
investment and management commercial properties. Much of this property comprises factories and warehouses,
hotels and offices.
By buying a warehouse for example, dividing and refurbishing as 'out of
town' retail units, investors achieve two things. Increased indirect
employment, which should qualify the investor for the visa, and higher
rents to produce a return claimed to be between six and seven per cent
after refurbishment.
The area can be seen to be improving as buildings and the local rail infrastructure are being upgraded. Costco, the giant retailer, has built a store in the old industrial area, and Starbucks has offices there, a major hotel is being built.
Each property designated under this investment program is a limited partnership in which investors own a share proportionate to their investment. The properties undergo a thorough refurbishment prior to letting and rental
checks are distributed monthly. The management company looks after the whole process from acquisition through letting and ongoing management
Investors can receive about $25,000 (5% per annum) after management charges and under the visa rules are entitled to sell approximately two years after receipt of their green card;
however there are other very important and significant factors you need to be aware of regarding this point.
Various legal and processing costs add $35,000 bringing the final investment to approximately $535,000.
The company has a range of legal and financial references relating to its transactions,
there are however some points of concern
that are not flagged up anywhere. You should be aware of these points which we cover at our
free EB5 briefings in the UK and USA.
This investment project has attracted both immigrants and
non immigrants (local Americans, which is an interesting factor that has
both positive and negative implications) for around ten years, and
immigrants that have opted for this program are able to recount their
experiences, which we feel is an important factor, however, there are
certain implication regarding this centre and it is important you are
made aware of them. It's recent projects have tended to be significantly
larger than the earlier projects which have a number of specific
implications.
Business Loans Eastern Sea Board City
This programme based on a Regional Center in a major City
on the eastern seaboard directs its efforts at financing projects and
developing enterprises within targeted sectors, including hospitality
and tourism, trade, technology, higher education, and transportation.
The investment period of this program is 5 years which has a number of
important implications.
This program appears large and well established. The funds are secured
by property lien or corporate guarantee. The area appears to be
regenerating successfully leading to a more diverse economy.
The program has a
waiting list with new openings being on a first come first served basis.
The down side is implications of the return - there are reasons for this
which we cover at our briefing consultation. Various legal and
processing costs add $30,000 bringing the final investment to
approximately $530,000 plus legal fees.
The history of this
centre is of particular relevance which we cover with you – this centre
is also planning to expand to other States with projects coming up in
Hawaii as well as the film industry in Los Angeles California.
Vermont Resort Development
This programme is focused on a regional center developing an
existing ski resort/ golf facility in an area in proximity to the Canadian
border. The completed resort is intended to extend the season by offering year
round facilities including a resort style indoor leisure pool complex.
The programme has a number of stages and the present plans are based on the
construction of an apartment/lodge style complex at the centre of the complex
which on completion will be sold as fractional ownerships.
This programme raises some interesting questions relating to the area it is in,
competition, and time frame amongst other issues which are only really answered
when spending time at the existing complex after attending our briefing
consultation.
Various processing and administration costs add $55,000 bringing the final
investment to approximately $555,000 plus legal fees.
Renovation of major City area devastated by
hurricane – South
This programme is focused on a regional centre program rebuilding,
through various funds, a metropolitan area that was devastated by hurricane and
flood damage. The programme has a number of stages and the present plans are based
on a five year funding arrangement with re-payment and any profit distribution
at the end. Unusually it sets out to combine humanitarian aid in hurricane
devastated area with for profit business opportunities.
In this programme, which began last spring, money raised by immigrant investors
and pooled as venture capital funds will be used to develop office buildings,
hotels, restaurants and medical clinics in the city. So far, the fund has
attracted about 50 investors from South Korea, China, Britain and the Middle
East, according to the company. Nothing has been built as yet, but with a
30-year contract with the city, the regional centre hopes to invest about $100
million in projects that it says could create thousands of jobs
Capital investment is to be targeted at:-
• Motion picture, film and art options.
• Lodging, hospitality and restaurants.
• Community based healthcare and mobile medical clinics.
• Family housing.
• Resort communities.
• Retail entertainment.
• Universities.
This program raises some interesting questions which we will cover in more
detail when we go through the options with you.
Various processing and administration costs add $60,000 bringing the final
investment to approximately $560,000 plus legal fees. The fund is intended to
distribute capital and profits when it is felt market conditions are
appropriate, this is an area we feel needs to be identified in depth.
Hotel Development – Washington DC
This programme is presently being reviewed by us as there are a number of issues
which we feel it important to highlight.
Assisted housing development - Far north west
This programme is presently being further reviewed by us as a number of issues
require clarification.
The project is the construction of assisted living facilities primarily for
Senior Citizens in a variety of accommodations offering various levels of
support to the residents. There is a planned exit strategy after five years
which may be of interest. The growth in an aging population due to increasing
numbers of the post war baby boomers hitting retirement age makes this a
particularly interesting Regional Centre.
Various processing and administration costs add $50,000 bringing the final
investment to approximately $550,000 plus legal fees.
Agricultural meat processing - mid west
This programme has recently been reviewed by us. One of the longer established
centres, it has had a particular focus on far-eastern investors. The focus on
agricultural production has a number of significant implications which you need
to be made aware of.
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