EB5 Investors Magazine Volume 2 Issue 1 | 页面 49

Even with the recovery of the market, a real estate developer can save millions of dollars using EB-5 funds as opposed to conventional financing. EB-5 investors have shown a preference for real estate projects, mainly because of the collateral value and the ease of the return on investment; in contrast, manufacturing projects, which do not have the same asset value, may not have the ability to repay the investor in five years. Another key reason to consider EB-5 financing for a real estate project is that real estate remains a tangible investment. Compared to other tangible investments, such as manufacturing, or intangible investments, such as stocks and bonds, investors can physically inspect real estate property; obtain background checks of the developers, sellers, and brokers; obtain an appraisal of the property; etc. Using leverage or debt in real estate can be structured more safely than using debt to buy stocks by trading. Real estate investments traditionally have been a good inflation hedge to protect against a loss in the purchasing power of the dollar. From the investors’ point of view, real estate EB-5 projects have tangible collaterals—the land and the property. Flexible regulations and affordable financing have combined with investor interest to make re