Working with Chinese EB-5 Visa Investors:

Working with Chinese EB-5 Visa Investors:

Since I began my work in the EB-5 Visa industry, I have mainly worked with Eastern European and Latin American investors.  Recently, I had the opportunity to assist and investor from mainland China.  This proved to be a real learning experience. 

Thankfully the Regional Center that we worked with has a full staff of professionals who speak fluent Mandarin, so the language barrier was not an issue.  That was a bright spot in this case.  The source of funds for the investment came from the sale or real estate in Hong Kong.  The sale took place rather recently, so we did not encounter any issues in regard to purchase and sale contracts and or funds switching hands. 

The fun started when we had to show the origin of the source of funds which were used to purchase the recently sold property.  Not surprisingly, the property was purchased as a result of the sale of a previous property.  The transition took place in 2009.  Further, the Regional Center requested that we show how property # 2 was acquired.  Drum roll: It was yet the sale of another property in 2004. 

One thing about real estate transactions in mainland China from the early to mid-2000s is that there are very few documents to support them.  Cash was and mainly is still king in that part of the world.  

Also, if a bank was used to facilitate the transaction, there is a large chance that the bank is no longer operating and all documentation is gone and no longer available to evidence the transaction. 

Luckily for this case, the investor did keep good records and was able to present the sale and purchase contracts or all three transactions.  These documents were not easy to come by, but in the end were presented to USCIS for review.  In China the sales contract is also the evidence of tax payment on a property, which in this case satisfied another requirement for USCIS. 

Next came the transfer of funds.  By law in China, only $50k USD may be transferred out of the country in a single year.  Thus, an EB-5 investor must split up the $500k USD between friends and family who then make the transfers individually to the investors Regional Center of choice.  I was amazed by the level or resistance from the Chinese banking authorities when it came to this part of the process.  It took several weeks and multiple attempts from various friends and family members of the investor to complete the numerous wire transfers. 

In the end, the biggest thing I learned about working with Chinese investors is to be ready to expect the unexpected and be prepared to quickly find solutions. I look forward to the next challenge! 

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What’s Next For EB-5 Visa?

What’s Next For EB-5 Visa?

It is no surprise that the EB-5 Visa industry has been seeing some major changes in the past year.  Increased processing times, and restrictions on the number of Chinese investors are just some of the few hot topics in the space today.  But what does the future hold for EB-5? 

With the sunset of the EB-5 program quickly approaching at in the 4^th quarter of 2015, potential investors should take notice of a few looming changes.  If the visa is extended for another three years or is made permanent by Congress, it is likely that we will see an increase in the investment amount.  There are rumors that the investment will go up to anywhere from $800,000 USD to $1M USD.  However, those who invest prior to the change in policy, will enjoy the limited $500,000. 

It is no surprise that the U.S. may make it more expensive to immigrate to the land of opportunity.  After all, the equities markets prove to be the strongest, there are no bombs falling from the sky, and the employment rate keeps climbing.  Another thing to consider is that, when compared to some of the other developed countries who offer investment immigration programs, the U.S. seems to be the cheapest. 

Another development to be aware of is the number of applicants who are flocking to the EB-5 Visa program.  Rumor has it that the visa will be oversubscribed by middle of the year.  Believe this or not, the closure of the Canadian program and now the closure of the Hong Kong program are driving large numbers of investors towards EB-5. The Chinese dominate the industry and will more than likely be affected by the lack of visas available.

Some leaders in the industry are also on a crusade to bring the EB-5 Visa back to its intended roots. With the mega projects hoarding the majority of the slots, it is becoming difficult for small business owners and innovators to take advantage of the competitive EB-5 marketplace.  Perhaps we may see some proposed changes in the allocation of the visas to smaller and more innovative operators?

With all the changes coming, one thing is for sure: The industry is changing rapidly but still growing at a tremendous pace. 

If you would like to know more, please visit my website http://eb5investgreencard.com/ 

The Dangers of L-1 Visa: Why EB-5 is the Premier Choice for Luxury Immigration

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The Dangers of L-1 Visa: Why EB-5 is a the Premier Choice for Luxury Immigration If you are a high net worth individual from China or Russia and are considering immigration to the U.S. through the L-1A or the EB-5 Investor Visa, your choice just got a lot easier. Within the last year the number of L-1A visa denial has skyrocketed. Cases that were being approved without even a simple Request for Evidence are now being scrutinized by the USCIS to the point where the L-1A is quickly becoming a dangerous choice for those looking for a quick and simple solution for immigration to the U.S. The USCIS has flooded the L-1 playing field with baseless FRE’s asking which seek information that has either been provided by the Petitioner on numerous occasions, or request documents which are simply not pertinent to the adjudication of an L-1.

Another danger of the L-1 visa has become the Consular Interview. Following successful approval by the USCIS inside the US, the Client’s often face tremendous challenges at the consular interview at the U.S. Embassy located in their home country. Specifically affected have been individuals from the China and The Russian Federation. Whether it is a politically driven message to the Russians and the Chinese, or a total indifference and a lack of care on the part of the Consular Officers in these countries, the results are the same. People are faced with lengthy administrative reviews lasting up to six months and a lack of communication during this stressful process.

Faced with such uncertainty, many are turning to the EB-5 visa. Our firm’s experience shows that If the client is able to prove the legal source of his or her invested funds, and is seeking the EB-5 visa through an establish Regional Center with a proven record for job creation, then the dangers of initial denial or administrative review are almost none-existent. It is sad to see honest and

THOSE WHO DON’T WORK DON’T EAT: THE USE OF FRANCHISES AS AN ALTERNATIVE TO THE REGIONAL CENTER APPROACH

The EB-5 world is a very unique market place. A foreign investor has the ability to become part of a large “pool” of investors in a USCIS approved Regional Center, make the qualified investment, and spend his days laying on the beach under a palm tree. For those who simply cannot sit still and favor having control in any business venture, there is the “stand-alone” or “direct” EB-5 option.

 The legal and procedural requirements are the same for the “stand-alone” as they are for the Regional Center approach. The “stand-alone” also allows for the limited $500,000 investment if the job creating enterprise, the business itself, is located in a Targeted Employment Area (TEA). One major difference is that all jobs created as a result of the investment must be direct jobs (35 hours per week compliant with the State’s minimum wage). One may say that such a requirement makes it virtually impossible to draw a profit when a large chunk of the incoming funds are allocated to paying employees’ salaries.

 Fear not, the franchise solution to making the “stand-alone” EB-5 concept profitable and USCIS compliant has arrived. Investors now have the option to work with globally recognized franchise brands in the U.S. This option allows the investor to use and rely on the franchise’s “know-how”, brand recognition, proven products & methods, as well as business techniques to satisfy the USCIS requirements while earning a sizable profit along the way.

 When I walk in to almost any food-service based franchise, I can immediately count in excess of five (5) employees working at any given time. Some food service franchises require well over ten (10) or fifteen (15) employees to meet the demands of their customers. Thus, the dreaded job creation requirement now becomes a welcomed and necessary component of a profitable business.

 Banks use information about the failure/success rate of every franchise in the U.S. to determine whether or not to loan start-up capital to a new franchisee. A foreign investor has the ability to rely on the same data used by banks to determine which franchise opportunity presents the best option for job creation and profit margins. Of course, everyone’s appetite for risk is different, and that is why the investor can choose a franchise that has a low percentage of failure. In the next six to twelve months, banks will also significantly decrease the amount of funds that they will lend to perspective franchisees, thus creating a “perfect-storm” for foreign investors seeking to obtain immigration benefits through the use of the EB-5 visa. Bringing $500,000 to the table, may allow the EB-5 investors to combine their cash-infusion with a bank loan to “hedge” their investment and potentially work with a franchise which requires a larger sum of start-up capital.


The State of Florida is already considered to be the “mecca” of EB-5. Now it is becoming a haven for EB-5 based franchise projects. At the Law Offices of Yuri Tsyganov, PL we have worked with numerous Regional Center based franchise projects, as well as “direct” investors who have used the franchise based EB-5 model to obtain immigration benefits. Please visit our website to learn more about the EB-5 visa.

Escape from Moscow: Russia’s The Next Great Exodus since the 1917 Bolshevik Revolution.

Escape from Moscow: Russia’s The Next Great Exodus since the 1917 Bolshevik Revolution.The Russians are coming! Yes, they really are and in numbers which have not been seen since the 1917 Bolshevik Revolution. The political and socioeconomic landscapes in Russia have long been dominated by widespread corruption and back-room “Banya” deals. Now that Premier Vladimir Putin has been re-elected for another twelve (12) year term, the future promises to hold more of the same elements which keep so many of the country’s business and entrepreneurial minds awake at night: Laws and regulations which do not favor those who are not willing to “play the corruption game” and the fear of sudden backlash from the government. These “Macro” events have forced many of Russia’s brightest to search for an “exit strategy”: A way to secure their family’s safety, future education and opportunities, and swiftly move their capital to safe and established/globally-recognized jurisdictions.

 The EB-5 Visa Program offers a speedy exit for those who are interested in a quick and relatively simple “exit”. Although there are over 240 USCIS approved Regional Centers, only less than a handful are producing speedy approvals for investors in a matter of one (1) to three (3) months. The reason for such unprecedented approval times is not only the quality of the projects offered by these Regional Centers and the USCIS’s familiarity with the projects and their top-managers, but also the current political situation in the U.S. Job creation for U.S. Citizens and Residents has dominated the Presidential election up to this point. It is in the best interest of the Obama administration to have higher job growth numbers in the days leading up to the election. Although the jobs created by the EB-5 program are only a small fraction of the total new jobs created in the U.S. each quarter, the EB-5 remains a proven source of new employment and capital. To make a long story short, the current U.S. administration is in support of the EB-5 visa to the point where some Regional Centers are seeing USCIS approval taking place in less than six (6) weeks! It is almost as though a “Perfect Storm” has taken shape of the EB-5 visa in the form of Presidential support and bi-partisan backing from both Democrats and Republicans in the House and Senate.

 For the Russians seeking freedom from political oppression, unfavorable business practices and regulations, and widespread corruption, the EB-5 is a perfect way out. According to numerous economic studies, the EB-5 visa is regarded as the most cost effective and expedient method for “luxury immigration”, which is ideal for the affluent/passive Russian speaking investor. Since the results of the Russian Presidential elections, we are seeing a wave of new potential investors from Russia and its neighbors, seeking to quickly relocate their family and capital to the U.S.

Our law firm feels that Russia is the new “hot market” for EB-5 and will continue to work with investors from The Russian Federation and the CIS countries for years to come. Please visit our website www.EB5InvestGreenCard.com to learn more!
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