The “5 Pillars” of Underwriting
Our selection criteria for EB-5 projects is among the most stringent in the industry.
We refer to it as our “5 Pillars” of underwriting. These are the most important criteria an investor needs to look for in a real estate development project. And for us these pillars are non-negotiable when we select a project to bring to investors.
- Experience. We look for a minimum of 20 years of experience in the product being developed.
- Equity. We require a minimum of 25% equity by the developer.
- Jobs. We look for a minimum of 13 jobs per investor and typically achieve 20-30 jobs per investor.
- Location. The adage “Location. Location. Location.” Holds universally true. The longevity and stability of a project is largely determined by its location. It takes a seasoned eye to recognized what constitutes a great location.
- Guarantee. Our structures are loan models. What this means is that the immigrant investor’s investment is made into a limited partnership (where the investment meets the USCIS “at-risk” provisions) then the limited partnership makes a loan to the real estate development project. A minimum requirement of our structures is that the developer provides a guarantee of repayment of the loan to the limited partnership. This form of guarantee provides great security to the immigrant investor but does not violate the USCIS “at-risk” provisions.