" The EB-5 Issuer should consider creating more than one class of EB-5 investors ."
investment . Following are four important elements of a business plan that savvy investors utilize when selecting an EB-5 investment .
1 . EXPERIENCE OF THE DEVELOPER
TRACK RECORD : The competence and track record of the developer and development team involved with the project are critical to an investor ’ s analysis . A thorough assessment of the developer ’ s overall qualifications , their portfolio of financially successful projects , especially ones previously involving EB-5 funding , and industry reputation , can help determine the chances of the project ’ s success as outlined in the business plan .
for the overall offering and becoming the foundation upon which the rest of the EB-5 application will be evaluated . In most cases , the business plan is the first EB-5 document drafted so that the project details can be solidified into a cohesive and simple presentation . All other EB-5 documents , including the securities documents , will rely on the business plan to provide necessary details to be completed .
The business plan should be structured to demonstrate the viability and feasibility of the proposed commercial enterprise , providing a detailed description of the nature of the business , its organizational structure , market analysis , marketing strategies , financial projections , job creation projections , and exit strategy . Additionally , it must show that the investment funds are at risk throughout the sustainment period . This is commonly referred to as satisfying Matter of Ho , which refers to a decision made by the Administrative Appeals Office ( AAO ) of the United States Citizenship and Immigration Services ( USCIS ) in 1998 . 1 All business plans written for EB-5 purposes should address the elements outlined in Matter of Ho .
While EB-5 investors should expect that the business plan include all of the necessary information to satisfy USCIS adjudicators , not all business plans that are Matter of Ho compliant are sound projects worthy of
PROJECT EXECUTION : Proven developers ensure the efficient execution of the project , can secure adequate financing options at favorable rates , and meet project deadlines . They are skilled in handling unforeseen challenges that may arise during the development process , such as financing , market fluctuations , risk management of delays or cost overruns .
MANAGEMENT : Experienced developers also understand the importance of maintaining their equity in the project and do not remove it too early . A sophisticated team can navigate complex regulatory requirements and effectively manage construction and operational aspects , leveraging existing relationships with sub-contractors and vendors to complete the project , according to the scheduled timeline in the business plan .
PROJECT TYPE AND INDUSTRY : Additionally , investors would be wise to identify similarities between the developer ’ s previous projects and the one presented in the business plan . While success with a previous project does not guarantee future success and each project must be evaluated independently on the merits , developers with relevant experience are better equipped to handle challenges specific to a particular project type or industry .
REPUTATION : Finally , vetting the reputation and integrity of the developer and development team are key to minimizing the risk of fraud , mismanagement , or legal issues , thereby strengthening the overall chance of success of the EB-5 project .
EB5INVESTORS . COM 17