Latin American clients are culturally different from the Asian
EB-5 applicants who, traditionally, have benefitted from
the EB-5 permanent residency visa. Latin Americans’
methods of bookkeeping and interest in investments
also differ drastically from their Asian counterparts.
Unlike their Asian counterparts, who are an emerging
market, Latin Americans of this socioeconomic level
have been accumulating their wealth for many generations. Individuals with their level of wealth live in a much
higher social standard than they could ever live in the
United States. However, the main catalyst motivating
them to give up the comfort of their home country is
their children. The demographics are usually those with
pre-teen or teenage children. They begin to worry about
their children’s security as they start going to social events
without their parents and when they attend universities that
provide them with more liberty and, consequently, increase
the danger of threats, kidnappings and extortion. However, the
principal (usually the husband/father) typically does not want
to immigrate and leave their business behind. The issues in
processing their EB-5 visas are cultural, their source of funds
and their relationship with their attorney.
their wealth accumulation, they are also comfortable investing
in projects that are not brick and mortar. Most of them have
their funds under trust accounts in tax haven countries and have
experienced investments in mutual funds and hedge funds and
are familiar with infrastructure investments. Most of the Latin
American clients invest in Regional Centers. Their familiarity
with the financial system in the United States makes them spend
a considerable amount of time researching for the Regional
Center that fulfills their immigration and financial expectations.
They tend to spend long hours researching the internet, asking
their friends and relatives (who live in the United States), and
meet with different attorneys, before making their investment.
The majority of EB-5 investors from Latin
America are Venezuelan, Mexican and Brazilian.
Source of Funds
The majority of EB-5 investors from Latin America are
Venezuelan, Mexican and Brazilian. In fact, according to USCIS,
the fourth largest group of investors is from Venezuela.1 This is
attributable to two main reasons. It is an oil-rich country where
investments are predictably successful and, secondly, due to
negotiations with the present government. In short, those who
support the Chavez regime benefit from immensely profitable
government contracts and are often coupled with the surging
crime that targets these high net worth individuals.
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Cultural
Most individuals seeking EB-5 visas, because
they have benefited from previous generations of wealth, have
been educated in the United States. Some even attended Ivy
League schools and then returned to their country to participate
in the family business. Most of them speak English and are
familiar with legal processes because of their family’s business
background. Also, because of the close proximity to the United
States, they can acclimate to American culture easily. Due to
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