EB5 Investors Magazine Volume 7, Issue 1 | Page 27

EB5INVESTORS.COM 25 LAUNCHING HIS EB-5 JOURNEY Lo figured EB-5 was a natural choice. He knew a passive investment route like the EB-5 regional center program could serve his immigration goals while sparing him from the risks of managing a business in an unfamiliar environment. Even after comparing programs offered by other major immigration destinations, Lo thought the EB-5 program stood out. “Among all the investment immigration programs, EB-5 has one of the lowest requirements,” Lo said. “It is reasonable in terms of the amounts of investment. That’s why I chose it.” Lo’s EB-5 journey k icked off with si x months of comprehensive research. As an investment banking expert specializing in risk management and loan underwriting, Lo didn’t find the due-diligence process ver y challenging. He was able to independently scrutinize projects, analyze loan structures and evaluate the feasibility of business plans. However, he set the bar high. “Of all 10 projects I reviewed, I think only one or two of them were acceptable,” Lo said. “ He was able to independently scrutinize projects, analyze loan structures and evaluate the feasibility of business plans. He was able to identify problematic issues in offerings that might be overlooked by other investors without a financial background like his. According to Lo, some projects put EB-5 investors in a very vulnerable position in the capital stack; some didn’t specify the consequences for the loan arrangers if they failed to make repayments. For investors who don’t have the expertise to spot these kinds of issues, Lo says it is crucial to work with a reputable EB-5 provider with a long track record. “There are reasons behind a good track record,” Lo said. “Good providers structure their deals in a way that protects the investors.”