PRACTICE POINTERS
The EB-5 Attorney at the
Crossroads of Law and Marketing
by H . Ronald Klasko
When I first started representing real estate developers and other businesses seeking EB-5 capital , I viewed my role as limited to preparing USCIS petitions that were approvable under prevailing EB-5 law and policy . I had nothing to do with the marketing of the project because , after all , I am a lawyer and not a marketer . It was only after gaining experience working with many clients that I realized that a legally approvable project template does no good if investors will not be interested in investing . Clients , with good reason , look to EB-5 attorneys not just for legal advice , but also for advice on structuring a project that will both comply with EB-5 policy and attract investors .
Now I find myself regularly advising clients that even though a project is perfectly legal and approvable , it can be difficult or impossible to market . Advice on the investor marketplace is a necessary adjunct of the legal advice that I provide . This article will explore issues that I discuss with my clients when providing legal services , and might be considered value-added marketing services . My comments are based mostly on the China market , where 81 percent of all EB-5 investors originate .
Project basics
Let ’ s start with some of the basics . It is usually very difficult to find investors interested in $ 1 million investments , therefore , ensuring that the project is in a targeted employment area ( TEA ) is often step one of the analysis . Equally obvious is that an approved exemplar petition is a huge marketing advantage , though it must be discussed in detail whether the marketing advantage is worth the long wait for exemplar approval . As a practical matter , most successfully marketed projects do not have an approved exemplar , so this step is not necessarily required .
The next key marketing consideration is location ; projects in certain cities are likely to be more marketable than others . New York , Los Angeles and San Francisco are at the head of the list ; however , good projects in areas such as Florida , Texas , Philadelphia , Washington , D . C ., Seattle , Phoenix and Vermont can also be highly marketable . Likewise , industry is a determining factor ; projects in the hotel , health care , mixeduse commercial / residential and other real estate based industries have typically been favored . Beyond the concrete facts , the reputations and past histories of the parties involved – the regional center , the developer , the lawyers , the economist – are important to the receptivity of the project , especially in the Chinese market .
38 EB5 Investors Magazine
PRACTICE POINTERS
The EB-5 Attorney at the
Crossroads
of Law and
Marketing
by H. Ronald Klasko
When I first started representing real estate developers and other businesses seeking EB-5 capital,
I viewed my role as limited to preparing USCIS petitions that were approvable under prevailing
EB-5 law and policy. I had nothing to do with the marketing of the project because, after all, I am
a lawyer and not a marketer. It was only after gaining experience working with many clients that I
realized that a legally approvable project template does no good if investors will not be interested
in investing. Clients, with good reason, look to EB-5 attorneys not just for legal advice, but also for
advice on structuring a project that will both comply with EB-5 policy and attract investors.
Now I find myself regularly advising clients that even
though a project is perfectly legal and approvable, it can
be difficult or impossible to market. Advice on the investor
marketplace is a necessary adjunct of the legal advice that I
provide. This article will explore issues that I discuss with my
clients when providing legal services, and might be considered
value-added marketing services. My comments are based
mostly on the China market, where 81 percent of all EB-5
investors originate.
Project basics
Let’s start with some of the basics. It is usually very difficult
to find investors interested in $1 million investments, therefore, ensuring that the project is in a targeted employment
area (TEA) is often step one of the analysis. Equally obvious
is that an approved exemplar petition is a huge marketing
advantage, though it must be discussed in detail whether
38
the marketing advantage is worth the long wait for exemplar
approval. As a practical matter, most successfully marketed
projects do not have an approved exemplar, so this step is not
necessarily required.
The next key marketing consideration is location; projects
in certain cities are likely to be more marketable than others.
New York, Los Angeles and San Francisco are at the head
of the list; however, good projects in areas such as Florida,
Texas, Philadelphia, Washington, D.C., Seattle, Phoenix and
Vermont can also be highly marketable. Likewise, industry is
a determining factor; projects in the hotel, health care, mixeduse commercial/residential and other real estate based industries have typically been favored. Beyond the concrete fact H \ ]][ۜ[ \\ܚY\و H \Y\[ Y8$ BY[ۘ[[\ H][\ H]Y\ HXۛZ\8$\B[\ܝ[ H X\ ]] Hو H ڙX \XX[ H[ B[\HX\] H
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