How To Determine EB-5 Project Viability

Investors can now choose from more than 700 EB-5 regional centers and each one probably has a fancy brochure flaunting all the bells and whistles you’d get if you invested in their projects. So, how do you get past all that advertising and determine true EB-5 project viability?

With the opportunity to obtain U.S. green cards for you and your family as well as $500,000 in an at-risk investment on the line, minimizing risk and finding an as safe as possible EB-5 project is a priority.

How can you determine EB-5 project viability?

Here’s a quick list of 4 questions that can assist you with conducting your EB-5 due diligence and help you find the right project.

• How realistic are the promises the regional center or developer are making?
  • Does it sound too good to be true? Are they guaranteeing you’ll receive your money back? Your project must be at-risk. Any guarantees like that are a red flag. Project developers may also try to lure you in with promises of high-dividends, unrealistic job creation, or fancy-sounding strategies that are essentially meaningless.
• Does the project team have years of experience with the type of project they’re offering you?
  • If you’re thinking of investing in a hotel project, are the team members experts at building hotels or is this their first time in this specific business area? What are their reputations? Did they meet their past deadlines? While past success does not guarantee future success, past performance can tell an investor that the project team has extensive experience with problem-solving and taking a project through to completion.
• Is there industry demand for this type of product or service?
  • Are market conditions perfect for this project’s products or services? What is the long-term outlook like for this project?
• Are you relying solely on the regional center’s team or do you have your own experts?
  • You may be undecided between more than one project or you may have concerns about certain aspects of a project. You won’t hear anything negative about a project’s prospects from the team proposing the projects. They are primarily focused on marketing the project and not conducting due diligence. Think about hiring, at minimum, your own attorney, as they can assist you with the often challenging due diligence involved in selecting an EB-5 project.

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