Home Builder Executive magazine listed Kolter Homes as number 18 on its Top 100 List of Private Home Builders in 2023. Kolter Homes achieved a remarkable 26% increase in gains in closings, which underscores the Kolter Group’s success at executing on master-planned community developments. EB5AN has partnered with Kolter on over 15 EB-5 projects, including the Twin Lakes Georgia community.
The story of Twin Lakes Georgia’s success is compelling. From the start, the project has exceeded expectations. It is already profitable with over 600 homes sold, and thousands of EB-5 jobs have already been created. Twin Lakes Georgia not only showcases what a well-executed real estate venture can achieve, but it also highlights how important it is for EB-5 projects to work with established, reputable developers.
In this article, we will delve into the importance of selecting the right EB-5 project developer. Then, we will explore how to keep the developer in mind when choosing an EB-5 project. Finally, we will look at Kolter as an example of a top-tier developer, its Twin Lakes Georgia project, and the ongoing success of its partnership with EB5AN.
The Importance of the Developer in an EB-5 Investment
For an EB-5 investor, one of the most important aspects of an EB-5 project is its developer. The quality of the developer can either lead to success or ruin. Not only must the developer succeed at real estate development—conceptualizing, planning, and building the project—but it must do so while complying with the EB-5 Immigrant Investor Program. These developers must strictly adhere to regulations while creating jobs and spurring economic growth.
Developer experience will profoundly influence a project’s outcome. A developer with a poor track record or too little experience adds substantial risk to EB-5 investors. On the other hand, a developer with a strong record, plenty of experience, and high credibility can mitigate EB-5 investor risk.
Working with an established, reputable developer instills confidence in EB-5 investors. A strong developer is more likely to complete its projects and succeed financially. And when a project succeeds, its EB-5 investors are more likely to have their immigration petitions approved and money returned.
How to Choose an EB-5 Project with the Developer in Mind
Since the success of an EB-5 investment hinges largely on the developer, an EB-5 investor should look carefully at the developer’s financial stability and track record. After a diligent review, an EB-5 investor should consider a project only if he or she is confident that the developer will be able to secure all the needed funds and complete the project on time and on budget.
Following are some key points to consider:
Be Aware of Risks
Some risks are inherent to EB-5 investments in real estate projects. Real estate investments involve some uncertainty, including the potential for financial loss. EB-5 projects carry the risk of failing to meet EB-5 program requirements, jeopardizing EB-5 investor immigrant applications. EB-5 investors should learn as much as possible about the risks of the EB-5 process and real estate investment before proceeding.
Look for Experience
After finding a project, an EB-5 investor should evaluate the developer’s EB-5 track record. Has the developer completed any successful EB-5 projects? Prior USCIS approvals show that a developer has been compliant with EB-5 program in the past. An EB-5 investor should also look at the developer’s standing in the real estate industry. A solid reputation enhances credibility and access to funding. The developer should have experience with projects like the EB-5 project under consideration.
Investigate Financial Stability
A prospective investor should look for signs of financial resilience. Has the developer secured large loans from major banks? The ability to obtain financing shows that the developer is creditworthy. Has it ever defaulted on any of its loans? A history free of defaults suggests that the developer has been able to successfully execute on prior projects. Has the developer ever failed to complete a project? A track record of completing projects shows that the developer is reliable.
The Kolter Group: A Leader in Real Estate Development
The Kolter Group is a diversified real estate development and investment company. It has invested in projects with an expected value of over $26 billion. Based in Palm Beach County, Florida, Kolter has extensive experience in real estate investment across the Southeast. Its investments cover various asset classes and development stages. It has vast experience in developing residential, commercial, and hospitality projects, with hundreds of employees across five divisions.
Current EB5AN—Kolter Projects
EB5AN has partnered with Kolter on several prominent EB-5 projects, all of which have been financial successes and compliant with USCIS requirements. All of these projects have either been successfully completed or are progressing as planned. Each finished project has generated sufficient qualifying jobs for all investors to meet the EB-5 program requirements. Further, all past adjudicated EB5AN–Kolter EB-5 projects have received approval from USCIS.
Presently, investors can participate in four different EB-5 projects developed by Kolter:
A Closer Look at the Twin Lakes Georgia EB-5 Project
One of the standout projects in the EB5AN–Kolter portfolio is Twin Lakes Georgia, a single-family home community near Atlanta, Georgia. The project was recently honored with the 2023 55+ Housing Community of the Year award at the 43rd Annual OBIE Awards event.
With over 600 homes sold out of 1,300, the project has already proven to be financially successful. It boasts a low-risk profile and various safety features that appeal to EB-5 investors. Besides its profitability and low-risk profile, Twin Lakes Georgia continues to experience notable growth in its market share.
Located in a rural Targeted Employment Area (TEA), the Twin Lakes Georgia EB-5 project benefits from a reduced minimum investment amount of $800,000 and priority processing for EB-5 investors’ Form I-526E petitions. Priority processing speeds up the immigration process for investors, including for those from traditionally backlogged countries such as China and India.
The collaboration between EB5AN and Kolter continues to bring EB-5 investors high-quality, low-risk EB-5 projects from a proven development team. With a focus on job creation, economic growth, and strong economic fundamentals, these projects exemplify the power of strategic partnerships.
