Navigating EB 5 direct investment projects can feel complicated, but it's important to take the time to evaluate your options and make a well-informed decision when it comes to investing.
Keep reading while we break down the key considerations for choosing a direct investment project and give advice on how to ensure your business succeeds and you receive US permanent residency.
Let’s dive in!
Location is one of the most important things to consider when investing in EB 5 direct investment projects. This is because an EB5 visa requires different minimum investment levels, depending on whether or not a project is located in a targeted employment area (TEA).
A targeted employment area is defined as:
A region with an unemployment rate of at least 150% of the national average
A rural area that is outside a metropolitan statistical area or outside a city or town of at least 20,000 inhabitants.
For investments located in a TEA, the minimum investment is $800,000. For those outside of a TEA, the minimum investment is $1.05 million. This makes investing in a high-employment or rural area significantly more cost-effective.
To find locations with economic potential, research where people are moving and look for where industry is booming in the US.
Eb5-approved projects are more than just a means to gain permanent residency. They're also a way to grow your personal wealth and contribute to the economic development of high-unemployment or rural areas.
By consulting with EB5 Investment firms such as ShooraEB5, you can gain insight into the most profitable investments. For example, investments in hotel and real estate development are some of the best EB 5 visa projects because they have high growth potential and consistent demand.
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Examine the financial viability of the investment projects you're interested in. While taking on risk can yield better returns for your investment, too much risk can lead to failed investments. If your investment fails over the two-year conditional residency status, you'll may be unable to receive permanent residency.
In addition, one of the main conditions of an EB 5 visa is that your investment creates at least 10 jobs for US citizens. Therefore, choose projects that will create lots of jobs, such as real estate development or solar farms.
Regional centers are organizations that can identify successful projects, choose reputable developers and manage the entire investment project. However, with direct investment EB 5 visa projects, the investor must handle everything.
This means you'll need to evaluate investment project managers to get an idea of their experience, success rate and reliability. When comparing developers, look for developers with extensive experience in the industry you want to invest in.
Navigating the EB5 process on your own can be a challenge, so it's important to hire a legal team that can help you complete the necessary forms you’ll need to submit to the USCIS (United States Citizenship and Immigration Services).
A legal team can also help you provide the necessary documentation that proves your source of income is legal and can communicate with the USCIS on your behalf in case any issues arise.
Although the goal of the EB-5 program is to obtain permanent residency, it's important to think beyond the immigration process and consider the long-term outcomes of your investment.
Conduct market analysis to determine long-term demand for your business's product or services, and create long-term financial projections to assess the viability of your business for years to come.
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Always consider several investment options and get opinions from third parties on which investments make the most sense. As with any investment, taking on risk can get you higher returns, but it's important to take on a responsible amount of risk, especially when your residency status is tied to the success of your investment.
When looking at EB5 approved projects, location is one of the most important factors to consider. Non-TEA projects have a minimum investment of $1.05 million, whereas TEA investments have a significantly lower minimum of $800,000.
With direct investment projects, you will be responsible for managing the business, so it's important to forecast the long-term success of the project with market analysis and financial projections. This will ensure your business succeeds, you meet all the EB5 requirements and you receive permanent residency.
