With only 3 months to go before the price of EB-5 jumps from $500K TEA/$1M non-TEA to $900K TEA/$1.8M non-TEA, AVS EB5 is getting many inquiries from last-minute investors wanting to beat the clock. As I explain below, we DO have a few DIRECT EB-5 slots remaining at the $500K level, but we are deferring the launch of our next Regional Center project offering until AFTER the price change. Sounds crazy, right? It isn't. Here's the problem: Regional Center projects rely on complex econometric modeling to count jobs.
Let's say a Regional Center project is raising $20M in EB-5 capital and is halfway there by November. That means the first half of the investors in the EB-5 limited partnership will be $500K investors, but if the project is among the 95% of current projects on the market with false TEA status, that means the OTHER half of the investors will come in at the $1.8M level. So what happens to those who have invested if the project is UNABLE to complete the raise at the new level? How are they protected? How will USCIS handle the reality that the first half of the investors are in theory allowed to rely on a false TEA status while the second half cannot?
Many, many questions remain unanswered, meaning many, many unforeseen risks can potentially arise for those investors jumping into a fake TEA project right before the rule change. Right now, the ONLY safe $500K EB-5 investment is one located in a legitimate TEA which will be unaffected by the rule change. AVS is one of the very few Regional Centers – if not the only one – insulated from these risks.
AVS is committed to protecting our investors and while it is certainly TEMPTING to debut another one of our TRUE TEA projects as the frenzy to invest at $500K increases, it would be the wrong thing to do. To insure that our Regional Center project investors are not subjected to the many unclear repercussions of the new regulation, we will be launching our next RC offering at the new $900K level. To keep our investor families safe, like we’ve been consistently doing for the past 8 years.
In the meantime, AVS is offering several direct EB-5 slots in a business which I co-founded 7 years ago with EB-5 bridge financing in place.u00a0 With years of proven success, the business is one of the most recognizable brands in Miami. All the jobs are direct and existing; the investors will simply be replacing the bridge capital I’ve secured over the years, as allowed by USCIS.u00a0 The EB-5 deal is a 5 year, 1% APR loan which balloons in 5 years. Because the jobs are already there, it is perfect for Vietnamese investors because it removes the uncertainties of the backlog…the jobs you need “someday” are proven TODAY. Located in a federal Opportunity Zone and profitable, the direct EB-5 structure I’ve made available is the only TRUE TEA $500K EB-5 project on the market with 100% job creation pre-established. Getting into EB-5 at $500K is great, but most projects will be affected dramatically by the new regs; getting into a proven investment at $500K with established jobs in a TRUE TEA is WAAAYYYYYY better!
The clock is ticking. I'm at the HCM AVS office until Friday, so please contact Monica Pham at 0938613062 if you are interested.
Attorney José E. Latour