Using EB-5 to replace Existing Developer Investments with Roger Christoph – Episode 34

Roger W. Christoph Using EB-5 to replace Existing Developer Investments

Using EB-5 to replace Existing Developer Investments with Roger Christoph – Episode 34

Most investors find themselves wondering about the riskiness of EB5. They are reluctant to invest in projects that might not succeed. Mark Deal and Mona Shah explore how EB5 market capital replaces already existing equity and bank loans, with guest Roger Christoph of Keystone Solutions and Great Texas Regional Center. Not only are these projects funded but many are already under construction.

 

Listen to “Using EB-5 to replace Existing Developer Investments with Roger Christoph” on Spreaker.

 

As the investors are very confused about this riskiness factor of EB5, and they wonder if there are other risk free options, we thought it would be best to discuss the topic with Roger Christoph, an expert in the field of EB5.

 

Roger Christoph is the founder and CEO of Keystone solutions and Great Texas EB5 Regional Center. He started his career as a registered broker dealer recognised by the Financial Institutions Regulatory Authority. He brings on the table an experience of over 30 years in the field of financial security.  This includes investment management of public and private equities to EB5 projects and investors. This background enables him to give a welcome approach about the discussion of replacement of EB5 with bank loans and equity.

 

Benefit to EB5 investors in working with EB5 Regional Center

  • Most EB5 investors might have a lot of money already in stock that they do not need the capital from an EB5 Regional Center. Yet they invest in this regional center. Why? Because for them, there is a deeper meaning to this profit.

 

  • The primary reason is the lower interest rate as comparable to the one available in the market. That lower interest rate helps generate a higher investment return on their equity investment.

 

  • They have access to the higher quality developers that were working with the domestic investors of the EB5 regional center. Therefore, foreign investors can access these developers as well, and these developers have a proven track record so quality is assured. Hence, they can make sure that their investment is in safer hands.

 

Is it really helpful for the community when it is about giving money to developers?

  • The programme was established to create jobs in America. Whether you are a Forbes 400 real estate developer or a brand new real estate developer, both of those projects are creating jobs.

 

  • The reason one would prefer a developer with a lot of experience is because of the likelihood of that project being completed and successful is far greater than having it done through an amateur developer that cannot get money from the bank or private equity firm.

 

Why should one avoid agents?

  • The primary reason to avoid agents is that agents are generally not at all transparent with their clients. Not only has the hide the fact that how much money they are making from regional center developers, but also they are not fully transparent on the documentation from the stand pointed of translation.

 

  • Another reason to avoid the agents is that they charge an exorbitant amount of money. In the United States, a broker-dealer has a limit on how much they can charge as his commission and fees. Generally, these limits are single digit percentages. The agents around the world charge double-digit fees and commissions.

 

  • In many cases, the worst projects get funded because the worst projects are willing to pay the highest commission to agents as they are in need of money. Therefore, agents are not only disadvantageous on the economic front, but they are also not ethically right.

 

Where to get investors when not using agents?

  • There is a network of lawyers, consultants, accountants, existing investors, etc. that can be tapped into to get investors. They are centers of influence in their cities and communities and can refer people to a regional center.

 

  • In addition, there can be marketing strategies like doing seminars, advertising, and finding clients by these methods. Using these strategies can help even the most beginners in getting a word out, and finding decent investors for their projects.

 

Things for an EB5 investor to focus on

  • Since no EB5 project can be completely risk free, there are many ways in which one can assess the risk and mitigate it as well. What matters is what is inside the package, and not the wrapping of the project.

 

  • The primary thing for an investor to focus on is the developer. The track record and reputation of the developer needs to be verified so as to see that he is trustworthy.

 

IF YOU HAVE QUESTIONS ABOUT INVESTMENT IMMIGRATION, PLEASE REACH OUT TO MONA SHAH & ASSOCIATES.

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