The Collapse of NYC EB-5 Begins
Among the many wealthy America cities which has diverted EB-5 investment capital from its Congressionally-intended destination – rural parts of America and genuinely poor urban areas — via the gerrymandering of TEAs, New York City eclipses all others combined in terms of sheer EB-5 capital raises. Now that, FINALLY, the new EB-5 Reform Rule has been unveiled, we’ll soon be seeing the collapse of many of these “fake TEA” projects.
While the single biggest abusers are also America’s largest developers, their pipeline investors aren’t in the greatest danger when Nov. 21 comes around and the scams end. Those companies have simply used EB-5 capital as cheap substitute capital, non-recourse and not on their balance sheets. The giants will begrudgingly turn to conventional bank lending and pay higher rates for their money, now that their hijacking of TEA dollars is officially rendered unlawful.
It’s the investors who are in big city projects which are NOT driven by megadevelopers who really need to be concerned. With rampant overdevelopment of luxury condo markets in America’s major cities, it won’t be easy to replace $50M of planned EB-5 funding in their capital stack, and projects WILL fold once the sham $500K TEA investment party is over and they need to raise capital in $1.8M chunks. Investors will, for the first time in the history of EB-5, actually direct their money at $900K projects in needy parts of the country.
While everyone knows that getting your I-526 in with your $500K investment before the rule takes effect is essential, there are many unanswered questions:
What will happen to partially funded projects which have falsified TEA status…will they be able to finish their EB-5 raise in $1.8M increments?
What impact will the continuing backlogs in China, India, and Vietnam have on large-scale EB-5 raises?
We just don’t know.
American Venture Solutions has been exclusively raising EB-5 capital in TRUE targeted employment areas and will have NO “half funded” projects in November when the rules change. 100% of pre-November AVS EB-5 investors WILL enter at the $500,000 threshold with 100% of the required job creation verifiable before investing. On November 21, the price for our NEW projects will jump to $900,000, but AVS will continue its 9 year tradition of ONLY promoting EB-5 projects in parts of America will jobs will REALLY be created and communities – not rich developers – will reap the rewards.
In addition to a history of delivering permanent residency for our investors and returning 100% of the investment capital of our first group of EB-5 investors, AVS remains the SOLE EB-5 Regional Center which:
1- complies 100% with U.S. securities laws worldwide and doesn’t pay illegal finders fees
2- has successfully marketed the only EB-5 projects ever offered by a Forbes- pedigree U.S. partner group and
3- can confirm a proven history of successful EB-5 raises in true TEAs
If you are ready to move to procure the last of the $500,000 EB-5 opportunities, AVS currently has several vetted and proven South Florida direct EB-5 options for legally accredited investors with impeccable source of funds histories. Please contact our Miami or Saigon offices for more information.
Attorney José E. Latour
Jun 23, 2020
Apr 11, 2020
Nov 04, 2019