As a real estate developer, seeking funding through the EB-5 program can be lucrative and the path towards EB-5 success is very complicated. Competition for investors in EB-5 is high, but a well-structured project has the potential to fund quickly, and EB-5 investors aren’t typically focused on a large ROI. However, the modern EB-5 environment is characterized by operational complexity and regulatory uncertainty, with many pitfalls awaiting the inexperienced and the unprepared.
Lauren Cohen’s advice in her 2017 article, “Bringing in the Experts: A Smoother Path to EB-5 Success,” has become, if anything, more relevant since its publication. She explains the importance of various professional roles to project success — from competent legal counsel to secure and efficient fund administration — with an emphasis on the importance of timing (hint: earlier is better). She also makes the argument for an EB-5 “quarterback” to help pull all the pieces together.
When you engage with your team of experts, the first thing they’ll do is conduct a comprehensive assessment of the proposed project to ensure its likelihood of success for EB-5 purposes. This assessment generally includes an analysis of the following: 1) whether or not the project is in a Targeted Employment Area; 2) the anticipated overall job creation numbers; 3) the planned capital stack; 4) an analysis of the market for the business, including a competitive analysis; and 5) the anticipated marketability to prospective investors and financial projections.
Time and again, we see clients who’ve tried to go it alone and have hit the same predictable roadblocks. Save yourself the headache, and let a team of professionals pave a smooth path to success for your project!
Read the article: “Bringing in the Experts: A Smoother Path to EB-5 Success”
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Allow us to address your EB-5 needs by contacting us. We look forward to hearing from you!