The Immigrant Investor Meets Realities, Part I
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5. It is not a process for persons concerned about having to make financial disclosure
Investors who sweat at the thought of having to disclose their personal finances to the U.S. government may not find the EB-5 application process comfortable. A critical government inquiry is “source of funds,” i.e. where did the investment capital come from? Sometimes, this is not an easy question to answer.
Sometimes, developing meaningful documentation of source of funds is impossible depending on the country of origin and its business mores. Related to this issue is the question of how to bring investment capital out of the country of origin if such activity would trigger currency control restrictions.
Key Points to Remember:
- Do your due diligence on the EB -5 project and build a competent and responsive team of professionals to help you identify and evaluate EB-5 projects and ventures.
- Consider early on questions like how is one going to assemble the investment funds to invest in the U.S. venture and how does one plan to prove up source of funds;
- Have some idea of what kind of investment you want to make. If you don’t have anything in mind speak to an investment advisor familiar with the EB-5 space;
- If you decide to pursue an EB-5 green card have patience. This is a marathon and not a sprint.
- Be prepared to pay $50,000 to $125,000 (and possibly more) beyond the committed investment capital to pay professional and administrative fees, and other types of fees that may not be considered included as part of the EB-5 investment;
- EB-5 investing can present wonderful opportunities for qualified investors, but it is no different from any other investment activity and poses many of the same risks.
Key final takeaways:
The Immigrant Investor (EB-5) visa program presents opportunities for foreign investors to obtain a green card through investing in qualified–U.S. based – investment projects, but to be successful at the EB-5 game the investor needs patience, a good team of supportive professionals, and attention to detail. Next article: Part 2
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