When exploring EB-5 investment opportunities, it’s important to remember that there isn’t just one “correct” answer. Every investor has different goals, and the best investment strategy for you depends on your individual needs, risk tolerance, and expectations.
Ahmed Khan, a vice president at EB5AN, explored each of these topics at the 2025 EB-5 & Global Immigration Expo Newport Beach. Read the summary below to discover different financing models, investor preferences, and how data informs those preferences.
Understanding Loan and Equity Models
Balancing Different Investor Preferences
Small vs. Large EB-5 Projects: Which Is Better?
Ensuring Project Success: The Role of Capital
Transparency and Data-Driven Decisions
The Importance of Setting Expectations and Building Trust
Evolution of the EB-5 Industry
EB5AN Can Help You Get a Green Card
Understanding Loan and Equity Models
Ahmed Khan started by mentioning that in EB-5, investors can typically choose between two main investment models: loans and equity. Each has its own advantages, and the right choice for you depends on your investment style and priorities.
The loan model tends to be more secure, as loans are generally repaid first in the capital stack. They also often come with collateral, which gives investors more peace of mind. If you’re a first-time investor or someone not heavily involved in real estate, a loan might be more comfortable for you because it offers a level of security—the assurance that your money will be repaid under agreed-upon terms.
On the other hand, some investors are more willing to take on risk for the potential of higher rewards. These investors might prefer equity investments. Equity investments carry more risk, but they also come with the potential for higher returns, especially if the project performs well. These types of investments can be a great fit for those who have a higher risk tolerance and seek a larger financial upside.
Balancing Different Investor Preferences
In the seminar, Khan said that at EB5AN, we’ve learned over time that offering both loan and equity options allows us to meet the needs of a wide range of investors. Some are looking for low-risk, easy-to-understand projects that offer security and straightforward benefits. These investors might prefer loans.
Others, however, are attracted to larger-scale projects in major cities, where the potential for a higher return might outweigh the risks. In these cases, equity investments might be more appealing.
Small vs. Large EB-5 Projects: Which Is Better?
Another factor to consider when choosing an EB-5 investment is the size of the project. While smaller deals may seem attractive, they come with their own set of challenges. There’s less inventory to sell, and managing multiple smaller investments can be a lot of work. Additionally, the costs involved in managing multiple applications can add up.
In contrast, larger deals tend to be more scalable. They allow for a broader reach in terms of raising funds and can be easier to manage over time. If you’re looking to invest at volume, larger projects may be more suitable.
Ensuring Project Success: The Role of Capital
The best EB-5 projects are those that would succeed even without EB-5 funding. In these cases, the EB-5 investment essentially lowers the developer’s capital costs and makes the project more financially efficient. The reality is that EB-5 money is used to make a successful project even more profitable for developers. But the key question is: Can this project succeed without EB-5 funds?
Before considering any project for EB-5 investment, we ask this critical question. If the project can move forward even without investor funding, that’s a strong indication of its viability. Only then do we consider it for EB-5 investment.
Transparency and Data-Driven Decisions
In today’s EB-5 landscape, investors are becoming increasingly sophisticated. With more access to information, they expect transparency and want to see clear, data-driven updates on their investments. Investors no longer just want promises; they want to see numbers and real-time progress.
Technology plays a key role in this new era of EB-5 investments. To meet these demands, EB5AN incorporated platforms that give investors easy access to updates on everything from construction progress to job creation numbers. These platforms allow you to track the performance of your investment regularly, giving you the peace of mind that your money is being well-managed.
Whether it’s live cameras showing on-site construction, updates on USCIS approvals, job creation statistics, or ensuring that project valuations and assumptions are based on third-party appraisals and not inflated by the developer, this constant flow of information helps you stay connected to your investment.
The Importance of Setting Expectations and Building Trust
As an EB-5 investor, it’s essential to have clear expectations. Some EB-5 projects may seem too good to be true, and it’s easy to get caught up in aggressive sales tactics. However, it’s crucial to focus on the facts and make your decision based on solid information.
The best way to choose an EB-5 project is by understanding it thoroughly. When expectations are set correctly from the start, everyone involved—both investors and developers—can feel confident moving forward.
Evolution of the EB-5 Industry
Finally, during the panel, Khan reflected on the evolution of the EB-5 industry, particularly how the EB-5 Reform and Integrity Act of 2022 (RIA) codified best practices. It created guidelines on what regional centers should be doing. A lot of regional centers were already implementing most of the directions mentioned in the RIA, and now they can provide more transparency to investors.
EB5AN Can Help You Get a Green Card
The EB-5 & Global Immigration Expo Newport Beach highlighted the evolution of the EB-5 program in response to changing investor needs and new regulations. As a panelist, EB5AN VP Ahmed Khan shared valuable insights, emphasizing how the EB-5 Reform and Integrity Act has enhanced transparency and trust in the program. He also provided practical advice on addressing challenges and aligning investment strategies with personal goals, while stressing the importance of partnering with an experienced and knowledgeable EB-5 team.
EB5AN has helped more than 2,300 families from over 70 countries become lawful permanent residents of the United States. Our team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.
If you would like to know more about your EB-5 investment options, book a free call with our expert team today.
