What Is At Stake In The EB-5 Investor Overhaul?


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There are competing factors of big states, little states, big projects and small projects. Regional center owners are generally concerned that these big companies, the huge development companies that have gotten into EB-5, are sucking off all of the visas, especially in China, by having projects for which they need 500 or more investors.

Because of that, people with the $30 million or the $15 million deal have difficulty competing with the glossy presentations that big developers and their Chinese agents present to investors.

What Other Things Should Investors Take Notice Of?

The main thing is to not put off investing till later. Recently it was like the roof is falling or the world is going to come to an end because people were saying investors had to invest by 30 September 2015, then 30 September passed and there was another extension for a week. Then everyone had a week to get everything in and then they had until December 11th. Now, all of a sudden, people are feeling more complacent and more comfortable because now they think they have until 30 September 2016.

Some investors are still deciding which investment to invest in, as opposed to the reality that this 30th September 2016 is just the outside date and it would not necessarily be the end date. Congress could come up with the bill that ended at 1st March if they wanted to and they could make the change earlier.

First of all, it is the investors own money so they could do what they wanted with it, and it would be up to them if they wanted to gamble by waiting longer. There is a new bill relating to Integrity that would have a major impact because these agents would obviously not want to disclose how much they were actually making.

Just the Integrity provision itself, if it passes, would cause an uproar even if the $500,000 stayed the same. If someone wanted to get in, then I would suggest they get in now while the law has still not changed.

Why Should People Keep Their Finger On The Pulse Of The EB-5 Program Even If They Do Not Intend To Apply In The Near Future?

I do talk to people like that and I tell people the reality of the situation. They would have to look at their own life regarding how important is was for them to come and whether they would be able to prove source of funds if they had to meet what was in the past proposed regulation assuming they brought that back relating to source of funds.

The person would also need to see whether it mattered to them if it would be $800,000 or a million dollars instead of $500,000.

I would go through it piece by piece and then tell my clients that it was their money so they would have to make their own decision. I would be the last person who would try to talk them into doing it one way or the other because it was their life and money. I would tell them that if they wanted to wait, then they would have to take the consequences of whatever the rules may be in 6-9 months”.

For more information on Possible Changes In EB-5 Program, a free initial consultation is your next best step. Get the information and legal answers you’re seeking by calling (310) 477-3000 today.

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