EB5 Investors Magazine (English Edition) Volume 5, Issue 1 - Page 101

stability and raising their children in a less corrupted and socially cynical environment generally rank higher than educational ones. An additional concern of investors from this region centers on the “guarantee” that investors receive that their funds will be returned in full and on time. Many investors are also deterred by the long investment cycle in typical EB-5 projects (5-7 years) as well as potential challenges with exiting the project. Failed real estate projects are relatively rampant in these markets, and therefore potential clients evaluate EB-5 projects in the same light. Significant time is needed to educate investors as to the capital stack, exit strategy and other key elements of projects, for example, construction guarantees, which are completely non-existent in this part of the world. Qualified advisors must provide guidance to investors to clearly explain the structures of projects to understand the features in place to protect the investors and ensure -- to the extent legally possible -- completion of the project and the return of the investor’s principal. The election of Trump was originally greeted in political and media circles with such enthusiasm in Russia that various sources reported that the Kremlin was even forced to issue a missive to the Russian media to tone down its prolific and glowing coverage of Trump. They were at risk of overshadowing President Putin himself. The extreme animosity between the Obama administration and Putin was matched only by Putin’s open hostility towards a possible Clinton administration. In this respect, Trump’s election has ever so slightly lessened the negative connotations of having interactions with the United States. At the same time, President Trump’s somewhat unpredictable policy- making process since entering office has raised concerns in investor circles as well about the long- term stability of the U.S. immigration system and EB-5 in particular. Potential investors have a difficult time of distinguishing, say, potential changes to the laws concerning political asylum from laws affecting the EB-5 program. Therefore, any changes to immigration policy would likely create uncertainty among potential investors. However, when considering participation in the EB-5 program, many potential Russian-speaking investors have recently started to question the likelihood of successful adjudication of their petition in light of the geopolitical tensions between Russia and the United States. Given the realities in Russian society and the overriding role of politics in their daily living, it's only reasonable in their eyes to assume these political issues would also spill over into the adjudication of EB-5 or any other petitions of investors from this region. Consequently, this presents another potential barrier in the minds of potential investors. As a side issue, it is noteworthy that although having residency in EB5INVESTORS.COM 100