No. There are two reasons for this policy: 1) investors vary as to what project characteristics they regard as most important, and we don’t wants to impose our own bottom-line judgements on investors; and 2) we don’t want our investor clients to think that we favor one project over another.
Yes (up to three such projects per investor), We will do an initial review for free, until we are able to decide whether the project is likely to be competitive with the projects we are already showing, and we will share the results with you. If the project looks like it is very strong, we will continue the review (it will take about three weeks), and share our conclusions with you at no charge. If we don’t believe the project will be competitive, we will charge you $5,000 to finish the review if the project is exemplar approved, and $12,000 to finish the review if the project is not exemplar approved.
No. We have never agreed to promote any regional center or it projects. We receive one type of payment from the regional centers, as follows: if we conclude a review of a project and deem it to be competitive with our Top Project, we enter into an agreement with the EB-5 project management firm whereby it will pay us a “finder fee” if we one of our investors invests in the single project that is the subject of the agreement.
I suppose no one can be 100% sure about this given the fact that there is unavoidably a certain amount of subjectivity in all project evaluations. We can say this, however – our business model was designed from the very beginning to marshal all our incentives to one goal – serving the client’s interest. For example, our clients are not obligated to work with us under our contract. We could spend months answering a client’s questions, educating the client etc., and if he picks a project that we didn’t show him, we get paid nothing. Not a good result for us! So you can see that we have a very powerful incentive to always have the very best projects in our Top Projects list.
If EB-5 funds are loaned to the Developer, the regional center of EB-5 project manager (if an RC is being “rented”) will receive the bulk of the interest payments. They use this income to offset their startup and management expenses, and to earn some profit on the venture. Most projects pays EB-5 investors less than 1% interest. If you invest as an equity holder in the project, your return will be based on the profitability of the enterprise.