U.S. investment immigration regulations stipulate that projects must carry a certain level of risk, which forces applicants to worry about the safety of their funds. Selecting a safe EB-5 project involves many considerations, such as management structure and team, feasibility studies, input-output analysis, data reliability assessment, independent third-party evaluation, industry prosperity analysis, U.S. economic trend forecasts, and project due diligence. However, these are far beyond the analytical capabilities of individual investors with a $500,000 investment unit.
In fact, setting these aside, you only need one consideration—who are you entrusting your money to? Recently, Dr. Winner Xing, President of Worldway, proposed this brand-new perspective on how investors should choose U.S. EB-5 projects, which immediately sparked widespread attention and discussion in the immigration industry.
Industry insiders point out that more than half of investors know very little about EB-5. The U.S. EB-5 Act stipulates that investors must invest $500,000 into a government-approved designated regional center. Unless investors are managing their own projects, they have no choice but to entrust their money to Americans to manage.
Because investors do not have a full understanding of U.S. laws and the economy, they are easily defrauded. Take, for example, several recent problematic EB-5 cases: would you be willing to entrust your money to someone who filed for bankruptcy in court through fraudulent means? Or to someone who stole and misappropriated employee pensions? Or perhaps to someone who has no ability to repay, or even no intention of repaying at all? This is the worst possible outcome of entrusting your money to Americans to manage.
In fact, investors' lack of confidence in EB-5 projects mainly stems from their lack of understanding of the fund managers. However, if you choose a manager who is well-known to the public, has government backing, or has an extremely high reputation and extensive experience, the risk will be minimized. When Chinese people entrust their money to major Chinese banks, depositors no longer need to make multiple considerations regarding the fund manager; when the 520 Bridge project entrusted its funds to the Washington State government, investors no longer cared about those considerations; when the California Public Employees' Retirement System, ranked sixth in the world, entrusted its funds to CIM for management, retirees no longer cared about those considerations.
Taking the U.S. Las Vegas Third Street renovation project as an example, the project's funds were entrusted to CIM for management, and I believe investors do not need to make those considerations either. He believes that among all current EB-5 projects, the Las Vegas Third Street renovation project is the only one whose safety is comparable to the recently approved 520 Bridge project. This is because entrusting money to CIM, the 27th-ranked private real estate fund in the world, is as safe as entrusting it to the Washington State government. Over the past 19 years, the CIM Group, which possesses $6.4 billion in equity investments and manages $11.6 billion in assets, has maintained a 100% success rate. I believe the Las Vegas Third Street renovation project is destined to become another 100% successful project following the 520 Bridge project!
