Question #4 - How many jobs will be created and what is the maximum number of EB-5 investors for this project? When looking at an EB-5 project, it is important to understand how many jobs the overall project is projected to create and what will be...
What does "Retrogression" mean? There are a specific number of EB-5 visas allocated to each country per year. Once the EB-5 visas for a country are used up, the remaining investors must wait for the following year to convert their I-526 approvals into green cards. However,...
Question #3 – When is my money used? It is important to understand when the regional center uses your money and deploys it into the project. While not true in every case, it can be reliably stated that the further along the developer is with the construction...
https://www.6sqft.com/williamsburgs-tallest-tower-tops-out-at-domino-sugar-factory-development/...
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...
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...
