stability and raising their children in a less corrupted
and socially cynical environment generally rank higher
than educational ones.
An additional concern of investors from this region
centers on the “guarantee” that investors receive that
their funds will be returned in full and on time. Many
investors are also deterred by the long investment
cycle in typical EB-5 projects (5-7 years) as well as
potential challenges with exiting the project. Failed
real estate projects are relatively rampant in these
markets, and therefore potential clients evaluate
EB-5 projects in the same light. Significant time is
needed to educate investors as to the capital stack,
exit strategy and other key elements of projects,
for example, construction guarantees, which are
completely non-existent in this part of the world.
Qualified advisors must provide guidance to investors to
clearly explain the structures of projects to understand
the features in place to protect the investors and ensure
-- to the extent legally possible -- completion of the
project and the return of the investor’s principal. The
election of Trump was originally greeted in political
and media circles with such enthusiasm in Russia
that various sources reported that the Kremlin was
even forced to issue a missive to the Russian media
to tone down its prolific and glowing coverage of
Trump. They were at risk of overshadowing President
Putin himself. The extreme animosity between the
Obama administration and Putin was matched only
by Putin’s open hostility towards a possible Clinton
administration.
In this respect, Trump’s election has ever so slightly
lessened the negative connotations of having
interactions with the United States. At the same time,
President Trump’s somewhat unpredictable policy-
making process since entering office has raised
concerns in investor circles as well about the long-
term stability of the U.S. immigration system and
EB-5 in particular. Potential investors have a difficult time
of distinguishing, say, potential changes to the laws
concerning political asylum from laws affecting the
EB-5 program. Therefore, any changes to immigration
policy would likely create uncertainty among potential
investors.
However, when considering participation in the EB-5
program, many potential Russian-speaking investors
have recently started to question the likelihood of
successful adjudication of their petition in light of the
geopolitical tensions between Russia and the United
States. Given the realities in Russian society and the
overriding role of politics in their daily living, it's only
reasonable in their eyes to assume these political issues
would also spill over into the adjudication of EB-5 or
any other petitions of investors from this region.
Consequently, this presents another potential barrier
in the minds of potential investors. As a side issue,
it is noteworthy that although having residency in
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