What Are Some Things To Consider When Working With The Regional Centers?


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As An Attorney, How Closely Does Mark Ivener Work With The Regional Center?

The involvement of Mark Ivener’s office with the regional center really starts after someone has made a selection. Once they’ve made a selection, then the attorneys need certain documents from them regarding the receipt of the investment money.

Taking the example that the administrative fee is $50,000 and the investment is $500,000. So, you have to monitor the receipt of the money you need, bank statements and the like to confirm that. That is done initially.

Then, down the line, when they do this 829, the removal of the conditions, the attorneys have substantial contact with the regional center because really it’s primarily an application with documentation furnished way to regional center to show completion of project and job creation. So, there is much more contact with the regional center on the permanent green card than on the I-526 there, it’s related to receive the money primarily. There may be some other immigration issues that the client has questions about that Ivener’s office will go over and if necessary, get clarification from the regional center.

If after the I-526 is submitted, immigration has questions about the project, then the issue would call the request for evidence, also called RFE, then the regional center has their own attorney who prepares the answers to the RFE because all investors in that project would get it.

Your attorney will then have contact with the regional center at that time. Hopefully that doesn’t happen but if it does, then the attorneys have contact at that time.

Who Does The Due Diligence On The Regional Centers If The Investors Are Well-versed On The Matter?

As stated earlier, if they are not well-versed, then if the attorney does not give them options of people who are available to do due diligence, meaning the broker dealers, the experts who do financial due diligence on investor selected projects, then they’re on their own.

Should Investors Be Concerned About Projects That Are 100 Percent EB-5 Financed?

There used to be projects that were 100 per cent financed, around 4 or 5 years ago, and a lot of hotel projects were 100 per cent financed by EB-5. Then, immigration changed their rule on occupancy and job creation about 3 or 4 years ago and they pretty much put an end to 100 per cent EB-5 financed projects. They are extremely rare now.

Now, certainly investors want to see the developer having some skin in the game, money in the project. So nowadays, a lot of the EB-5 financing is just a part of the whole capital stack; it could be that hotel projects, generally on average, maybe 40, 50, 60 per cent is EB-5 money and the follow-up could be equity or loan depending on the project and then if it’s equity, then the other part is a loan. They have a loan from the bank.

If it’s a loan project, then they put in some equity. So, whatever it is, the chances of 100 percent now are rare as there haven’t been many in the last few years.

If you want information regarding Working With The Regional Centers, call the law office of Mark Ivener for a free initial consultation at (310) 477-3000 and get the information and legal answers you’re seeking.

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