Question #2: Why is the developer using EB-5 in this project? This is always an important question to ask when investigating potential EB-5 investments. One should understand whether the developer has used EB-5 in the past or is this a new capital source for the developer. Has...
Question #1 – Has the Developer invested meaningful equity of its own in the project? When comparing EB-5 projects, potential investors should look at the amount of equity that the developer has invested in the project. In most cases, the developer’s equity is returned when the...
What is the benefit of having a bank in the capital stack? Before a bank approves a loan for a project they have to conduct due diligence to ensure that the project meets the bank’s credit standards. During this process, they will explore every aspect of...
We often refer to the “capital stack” when we discuss the different sources of money needed to fund a project. Sources can include common equity, preferred equity, senior debt and mezzanine debt among others. When discussing an EB-5 project’s capital stack, it is important to...
Part 3 – Why we choose to make Preferred Equity Investments[1] This post will detail important factors to considers before investing with a Regional Center that will be placing your money in either the debt or Preferred Equity positions with the EB-5 Intermediary Company for a...
PART 2 – DEFINING THE “LOAN MODEL” VERSUS “EQUITY MODEL”[1] This post outlines considerations for the two major segments of a capital stack for a real estate project that will include EB-5 as a funding source: Debt– Either the Senior Loan or Mezzanine Loan position, or ...
PART 1 – AN ILLUSTRATIVE CASE STUDY IN CAPITAL STACK POSITION[1] Your position in the capital stack does matter. Like any investment, when considering an EB-5 opportunity, how you invest your money (capital position) is equally as important as where you invest your money (project-level risk). As an investor, you...
RISK – every investment and business venture has it, but when it comes to an EB-5 investment, savvy investors and their advisors must learn how to protect themselves and their clients from EB-5 risks that can be avoided. In EB-5, virtually all projects offer the same...
Lawmakers May Not Spend Political Capital on Stand-Alone EB-5 Bill BY DOUGLAS HAUER, ALEXANDER HECHT AND NEAL MARTIN ...
By: Dan Shields, President, AscendAmerica As the owner of a USCIS-approved Regional Center, you’d be surprised to hear me say that EB-5 may not work for you, and sometimes, it’s just not worth the investment. But while EB-5 is a great avenue to finance many real...
