The EB-5 Immigrant Investor Program provides an exciting pathway for foreign nationals to gain permanent residency in the United States by investing in U.S. businesses. However, as with any investment, the key to success is not just in the opportunity itself but also in the people behind the company. For prospective EB-5 investors, ensuring that the leadership of an EB-5 company is well-qualified is critical to reducing risks and maximizing the chances of a successful investment.

Before committing your capital, it is important to carefully evaluate the team leading the EB-5 project of your choosing. In this article, we will guide you through the key factors to consider when assessing the leadership of an EB-5 company, what to watch out for, and how to make an informed decision.

Assess the Leadership’s Experience

A successful EB-5 investment is largely dependent on the experience and competence of the project’s leadership team. Look for companies whose leadership team has a proven track record in both the business sector they are operating in and in managing EB-5 projects specifically. Experience in both fields will signal that the leadership understands not only how to run a successful business but also how to navigate the complexities of the EB-5 program.

Questions to ask:

• How long has the leadership team been involved in EB-5 projects?
• What is their experience in managing the type of project you are considering (e.g., real estate, infrastructure, technology)?
• Do they have a history of successful EB-5 projects, with investors receiving Green Cards and their investments returned?

A well-qualified team should have extensive experience managing projects that generate sufficient job creation, meet regulatory requirements, and lead to the successful approval of EB-5 petitions. Be sure to ask for evidence of their past successes, such as project case studies or testimonials from previous investors.

Check the Qualifications of Key Team Members

The team of an EB-5 company is made up of various key players. When evaluating the company, you should look closely at the qualifications of the individuals in these positions.

A CEO with a background in business development can provide strategic direction. On the other hand, it is crucial that the financial advisors and accountants the company works with are certified and have experience in managing investment funds and creating business plans that satisfy USCIS requirements.

It is also important for the company to have connections with a team of immigration attorneys who specialize in EB-5 visa issues. They should be familiar with the application process and have a history of successfully guiding investors through the approval process.

To verify these qualifications, request the professional credentials of the leadership team, and review their experience. Do not hesitate to ask for references or a track record of their past work.

Investigate the Company’s Reputation and Track Record

An established EB-5 company with a strong reputation in the market is more likely to offer a secure investment opportunity. Do some research to find out what previous investors and industry professionals are saying about the company. Word-of-mouth and online reviews can give you a sense of how reliable and trustworthy the leadership is.

Look for evidence that the company has successfully completed previous projects and has helped investors obtain their Green Cards. Be wary of companies with no verifiable track record or those that have had multiple projects fail.

Moreover, a reputable EB-5 company should provide clear, detailed information about their projects, leadership, and financials. If a company is hesitant to share this information or becomes defensive when questioned, it may be a red flag.

Before you invest a minimum of $800,000, you might also want to check if the company has been recognized by credible industry bodies or if they have earned positive media coverage. A well-established company is likely to have a solid network of partners, investors, and advisers.

Understand the Company’s Financial Stability

A key aspect of evaluating leadership is understanding how financially stable the company is. A company’s financial health is directly tied to its ability to complete projects on time, maintain its EB-5 commitments, and ensure the safety of investments.

In the process of looking into an EB-5 company’s financial stability, there are some red flags to watch out for. For example, if the company is unable to provide detailed financial statements or if their financial reporting seems inconsistent, this could indicate a lack of transparency or financial mismanagement.

Another red flag to watch out for is if the company is heavily leveraged or lacks sufficient funds to complete the project. This could result in delays or failure to meet EB-5 program requirements. Ensure that the company has access to other sources of capital and has contingency plans in place.

Before investing, request detailed financial information, including audited financial statements and projections for the project. Consulting with a financial advisor or an attorney who specializes in EB-5 investments can help you understand the financial aspects better.

Confirm the Company’s Commitment to Job Creation

The heart of the EB-5 program is job creation. Each investment must create at least 10 full-time jobs for U.S. workers. Failure to meet this requirement can result in a denial of the investor’s Green Card application and the loss of the investment.

Ensure that the leadership team understands the importance of job creation and is committed to meeting this critical program requirement. The company should have a concrete plan in place detailing how they intend to create these jobs and meet the requirements of the EB-5 program.

A company with strong leadership will have a detailed business plan that outlines how they will create jobs, and they should be able to provide periodic updates on the project’s progress in meeting these goals.

Meet EB5AN’s Key Team Members

Before you invest in an EB-5 project, it is essential to thoroughly vet the leadership team. Their experience, qualifications, reputation, financial stability, and commitment to job creation are all crucial factors that determine the success of your investment and your potential for receiving a Green Card.

Meet the following key members of the EB5AN senior team.

• Sam Silverman, co-founder and managing partner. Sam has extensive real estate development, management, financing, and brokerage experience in the United States and in the People’s Republic of China. Sam was also previously employed by the Boston Consulting Group, one of the top management consulting and business strategy firms, where he worked directly with Fortune 500 Companies in the food service, media, manufacturing, hospitality, and real estate spaces.

Sam regularly writes for Forbes Business Council and has lent his expertise to the Wall Street Journal on matters related to the EB-5 program.

He holds a B.A. in Economics from Yale University, a Certificate in Financial Accounting from the London School of Economics and Political Science, and an M.B.A. from the Stanford Graduate School of Business.

• Mike Schoenfeld, co-founder and managing partner. Mike has extensive private equity investment, business diligence, management consulting, and entrepreneurship experience. Previously, Mike worked for AEA Investors, a leading middle-market private equity firm with $10B+ under management that is focused on making control-oriented investments in consumer goods, industrial goods, and business services companies. Mike was also previously employed by the Boston Consulting Group.

Mike holds a B.A. in Economics and a B.S. in Business Administration from the University of North Carolina at Chapel Hill.

• Jake Hoyle, vice president. Jake has extensive experience in finance, consulting, and EB-5 project structuring. Before joining EB5AN, he worked in fixed-income sales and trading at Jefferies Group, a middle-market investment bank. Jake also was previously employed by Crédit Agricole, a large international banking group, where he worked in international trade finance.

Jake holds a B.A. in Economics with a concentration in Business Management from Columbia University.

• Ahmed Khan, Esq., vice president. Before joining EB5AN, Ahmed was an associate at several distinguished law firms, including Klasko Immigration Law Partners, BAL, and Fragomen. He also served as a vice president at CanAm Enterprises, leading the firm’s Middle Eastern and Asian business development.

Ahmed has a broad understanding of immigration law and more than a decade of experience in EB-5 matters, including project due diligence, project selection, and investor source of funds. He holds a J.D. from the University of South Carolina.

EB5AN has helped more than 2,300 families from 70+ countries become lawful permanent residents of the United States. Our expert team has more than a decade of experience and offers clients first-rate, low-risk EB-5 regional center projects with a 100% USCIS project approval rate.

If you would like to know more about your EB-5 investment options, book a free call with our expert team today.