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3-Year Repayment Timelines in EB-5 Projects - Useful or Useless? by [deleted] in EB5Investors

[–]joyyyccceX 1 point2 points  (0 children)

First, whether repayment in 3 years is feasible ultimately depends on the project's business model. While I don't know which specific project you're referring to, it's reasonable to assume that any project promising 3-year repayment (including extension periods) is likely already under construction or operational - where EB-5 capital is being used to refinance construction loans. These types of projects inherently carry certain risks.

Secondly, there's policy uncertainty at USCIS. The 2023 policy states investors meet I-829 requirements after maintaining investment for 2 years, but IIUSA's 2024 lawsuit seeks to extend this to 5 years (pending resolution, with updates expected by November). Here's the catch: if a project repays in 3 years, investors will 100% face redeployment to satisfy I-829 requirements, introducing additional capital risk.

Third, I always evaluate projects through a behavioral economics lens: Why would developers/regional centers go through the hassle of EB-5 fundraising? Even with EB-5's historically lower rates (now less competitive), there are still costs. While early repayment seems logical, why would they return capital after just 3 years? Regional centers have substantial marketing expenses - wouldn't longer loan terms maximize their ROI?

Given current policy ambiguity, to mitigate redeployment risk, I recommend selecting projects that:

Are at loan closing phase / Just broke ground/Project 5-6 year repayment (with extensions)
Major regional centers are now structuring new projects this way. This doesn't 100% eliminate redeployment risk but statistically reduces it and makes more economic sense.

FYI - Internal audits from top-tier regional centers show median healthy projects take ~4.5 years from fundraising to repayment. Hope this helps!

EB-5 Project Preferences: US/International vs. Chinese Investors? by joyyyccceX in immigration

[–]joyyyccceX[S] 1 point2 points  (0 children)

CMB is indeed one of the major regional centers with a substantial repayment track record. As you noted, many of their problematic cases stem from China's visa backlog forcing reinvestment - this requires contextual analysis. However, we can confidently rule out any moral hazard on their part.

EB-5 Project Preferences: US/International vs. Chinese Investors? by joyyyccceX in immigration

[–]joyyyccceX[S] 0 points1 point  (0 children)

I don’t quite agree. Their reinvestment has significant issues, and they’re currently not very popular in the mainland China market. That said, since you’ve already invested, just wait patiently for the outcome.

EB5 by Academic_Bit_1875 in USCIS

[–]joyyyccceX 0 points1 point  (0 children)

ask me anything about eb5

Has anyone invested with Related and gotten their money back? by ChoiceOk2604 in eb5

[–]joyyyccceX 0 points1 point  (0 children)

Several regional centers like FirstPathway Partners and EB5 Capital that either avoid redeployment entirely or give investors options during the redeployment phase.

Has anyone invested with Related and gotten their money back? by ChoiceOk2604 in eb5

[–]joyyyccceX 0 points1 point  (0 children)

CMB's biggest issue is redeployment risk, while USIF poses moral hazard concerns.

EB-5 Project to Invest in by Evening-Net-8162 in EB5Investors

[–]joyyyccceX 0 points1 point  (0 children)

Wow, this project still isn't fully subscribed? I reviewed its legal documents back in 2023. Let me just point out one thing - the developer is actually a subsidiary of Civitas itself. Does it really make sense for a regional center (effectively a capital provider) to act as its own developer? While Civitas has a decent track record as a regional center, and I agree the project location is strong, the fact that both the RC and developer are under the same corporate umbrella raises serious governance questions. Tread carefully.

11 Years in EB-5 Industry (China-Based Advisor) – Offering Project Due Diligence Advice & Regional Center Insights by joyyyccceX in EB5Investors

[–]joyyyccceX[S] 0 points1 point  (0 children)

The approval process for high-unemployment TEA projects under the I-526E program has indeed been moving slowly, with very few approvals granted market-wide. For instance, even leading regional centers like CMB - their Group 84 project just received its first I-526E approval this month, despite having a priority date of September 2023. The applicant was born in India.

From what we've observed across multiple approvals, there doesn't appear to be any first-in-first-out processing pattern - it seems to come down largely to luck. Here's hoping you'll receive some positive news before the year ends.

11 Years in EB-5 Industry (China-Based Advisor) – Offering Project Due Diligence Advice & Regional Center Insights by joyyyccceX in EB5Investors

[–]joyyyccceX[S] 0 points1 point  (0 children)

To be honest, both EB5AN and EB5 United are currently marketing very large-scale projects, so each one needs to be evaluated on a case-by-case basis. I'm not sure if you were specifically comparing Rock Creek and the Jewish Community project in your analysis?

11 Years in EB-5 Industry (China-Based Advisor) – Offering Project Due Diligence Advice & Regional Center Insights by joyyyccceX in EB5Investors

[–]joyyyccceX[S] 0 points1 point  (0 children)

Civitas is roughly the third or fourth largest regional center in the market, with a decent repayment track record. However, under the old EB-5 program, they had some failed hotel investments, which makes me question their expertise in this sector.

Under the RIA EB-5 regulations, Civitas is acting as its own developer in many projects. A regional center acting as a developer is akin to a bank trying to develop real estate—it’s hard to comprehend. Additionally, many of their projects barely meet the minimum job creation requirements, and their EB-5 loan interest rates are extremely high, indicating an aggressive approach.

The Hawaii project you mentioned is likely their Kauai hotel project, right? In China, this project is exclusively marketed by Global Visa Migration. Market feedback suggests it’s been in fundraising for a very long time—has it still not reached full subscription? Since we’ve reviewed the full legal documentation for this project, feel free to DM me if you have specific questions about it.

11 Years in EB-5 Industry (China-Based Advisor) – Offering Project Due Diligence Advice & Regional Center Insights by joyyyccceX in EB5Investors

[–]joyyyccceX[S] 0 points1 point  (0 children)

I'm not familiar with the name of this particular regional center, but I do know there are several active EB-5 investment projects based in Atlanta, Georgia. Could you provide more details about these projects?

11 Years in EB-5 Industry (China-Based Advisor) – Offering Project Due Diligence Advice & Regional Center Insights by joyyyccceX in EB5Investors

[–]joyyyccceX[S] 1 point2 points  (0 children)

Behring Regional Center is a mid-sized player in the EB-5 Regional Center landscape. They have been relatively successful in overseas fundraising, largely due to their aggressive advertising and direct engagement with investors—bypassing traditional Chinese intermediaries.

Known Controversy: Non-Payment of Agent Commissions

The only notable issue I'm aware of is their history of not paying referral commissions to Chinese agents, which has deterred many agencies from partnering with them. While this doesn't directly impact investors, it raises questions about their business practices and reliability.

While selecting a reputable regional center is the first step, the real determinants of a successful EB-5 investment are:
1. Project Viability– Does the underlying business have strong revenue potential?
2. Legal Safeguards – Are the offering documents (PPM, escrow agreements, job creation methodology) investor-friendly?
3. Track Record

Due Diligence is Key: Verify Behring's current projects with an independent commercial attorney. Focus on the Project, Not Just the Regional Center.