For investors looking to obtain a U.S. Green Card through the EB-5 Immigrant Investor Program, selecting the right project is crucial to making a safe and potentially profitable investment.
The EB-5 program requires that investors contribute $1,050,000—or $800,000 in targeted employment areas—to a U.S. new commercial enterprise that creates at least 10 full-time jobs for qualifying U.S. workers. Achieving this goal demands not only a solid investment strategy but also careful attention to the project’s developer and their history.
A well-established and experienced developer with a proven track record can significantly reduce risks and enhance the potential for success. Three key elements—project history, capital stack structure, and delivery timelines—are crucial in determining if a project is likely to create the required jobs and return the investor’s funds.
Let’s dive into why these factors matter and how collaborating with experienced developers can protect your EB-5 investment.
Project History
Capital Stack
Delivery Timelines
The Importance of Experience in Protecting EB-5 Investments
Project History
An experienced developer brings a wealth of knowledge and expertise to an EB-5 project, which can help ensure that the project is completed successfully, on time, and within budget.
One of the most critical ways to assess a developer’s capability is by looking at their project history. The developer’s previous projects provide valuable insights into how they handle various challenges, manage resources, and execute projects.
For example, Kolter, one of the prominent developers EB5AN collaborates with, has a strong track record of delivering successful large-scale real estate projects across the United States. Their experience in handling complex developments—such as residential, mixed-use, and hospitality properties—gives EB-5 investors confidence that the projects they are involved in will be executed with a high level of professionalism and attention to detail.
Additionally, a developer with a successful history of completed EB-5 projects demonstrates their ability to meet the requirements of the program, including creating the required number of jobs. Trusted, experienced developers have completed multiple EB-5 projects that have not only met the job creation requirements but have also exceeded expectations in terms of profitability and project delivery.
The EB-5 process can be complicated, both for investors and developers. That’s why it’s so important for investors to partner with a developer that has successfully navigated the complexities of EB-5 investments in the past. These developers will know how to structure projects that fulfill the regulatory requirements, ensuring a smoother process and greater protection for the investor’s capital.
Capital Stack
The capital stack refers to the structure of how a project is financed, detailing the different layers of investment and debt involved. How the capital stack is organized directly impacts the likelihood of the project’s success and the return of investor funds.
An experienced developer will structure the capital stack to minimize risk to EB-5 investors—typically by positioning EB-5 capital with a degree of security and repayment priority.
A well-structured capital stack not only ensures the project is adequately funded from the outset but also helps safeguard investors’ funds.
Delivery Timelines
The EB-5 program requires that the investor’s funds be used to create or preserve at least 10 full-time jobs for U.S. workers. These jobs—as well as the invested funds themselves—must be sustained for a minimum of two years.
EB-5 projects must therefore include a timeline that can meet this minimum standard and then adhere to this timeline.
Experienced developers understand the importance of realistic timelines and can manage both construction and operations to ensure job creation targets are achieved and sustained.
Conversely, any delays in the project’s timeline can lead to a delay in job creation, which in turn can jeopardize the investor’s ability to receive their Green Card and cause complications in the return of their capital.
Predictable timelines reassure investors that their capital will be used efficiently to create and sustain jobs—and that the project will hit key milestones for repayment.
The Importance of Experience in Protecting EB-5 Investments
Investing in an EB-5 project can be a significant financial commitment, and choosing an experienced developer can greatly enhance the likelihood of success. A proven project history, strong capital stack structure, and realistic delivery timelines are essential for protecting your investment and ensuring the creation of the necessary jobs to secure your Green Card.
Reputable regional centers conduct thorough due diligence before sponsoring a developer’s EB-5 project. So if you’re unsure which developer to trust, reaching out to an experienced EB-5 firm is a smart first step.
EB5AN has helped more than 2,700 families from 70+ countries relocate to the United States as lawful permanent residents. Our expert team has more than a decade of experience, and we offer our clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.
If you would like to learn more about how to select a developer or about EB5AN-sponsored projects, book a free call with our expert team today.
