Before you invest in any EB5 project, consider the following factors:
|18 Fremont Project||Other Projects|
|Security||18 Fremont has committed to include security on the EB-5 project but also additional security on the revenue of their other 2 operating enterprises(The Golden Gate Hotel & Casino and The D Las Vegas).||Many projects will give security on only their ongoing EB-5 related project which may not be enough to cover the EB-5 debt.|
|Exemplar Approved Project||18 Fremont has received Exemplar Approval,|
The highest level of approval by USCIS.
|Many other Regional Center(RC) projects do not have Exemplar Approval designation, and still need to get USCIS approval for their projects.|
|Job Creation tied to construction only||Jobs are created during construction only and not tied to operations. This helps reduce risk.||Many EB-5 projects may have the EB-5 investment tied to the operational success of the project. This could be a larger risk.|
|Minimum 10 Jobs per investor||18 Fremont will create 48 to 50 Jobs per investor. Significant number of jobs have already been created.||Many projects don’t have such a high job cushion which can put the 10 jobs per investor requirement at risk.|
|Project Equity||Ownership generates approximately $130|
-140 Million USD annually from their other businesses, which creates cash flow that can be used to payback EB-5 investors.
|Some projects’ repayment is dependent on whether the project gets completed and is successful.|
|Broker Dealer||PCEG has retained a broker dealer in order to provide the project and the investors an added layer of financial over sight protection. This is best practices in the industry.||Many RC’s don’t hire broker-dealers. It isn’t required and is an added expense that many RC’s choose not to incur.|
|Targeted Employment Area(TEA)||The 18 Fremont project is within a Target Employment Area (TEA) and uses only 2 cens us tracts to get TEA designation.||Projects in large down town areas sometimes join as many as 20 to 30 +cens us tracts to get TEA designation. This is risk ieras they may lose their TEA designation if new TEA rules are enacted.|
|Rate of Return||18 Fremont features annual rates of return |
that are on the high end of EB-5 projects.
|Many of the other RC’s offer lower rates of return.|