“Your investment is at great risk if the management team is unable to bring the project to fruition,” Bernstein says. “What is the general partner's experience in managing multi-million dollar projects? What projects has the partner successfully completed in the past? Make certain that the regional center has a familiarity with the EB-5 program and understands its responsibility to complete the project and create the requisite jobs.”

In terms of job creation, Bernstein suggests evaluating the methodology for creating jobs. In this case, developers should take a conservative approach in estimating indirect and induced jobs. Ask yourself, “How many direct jobs will likely be created?”

“The central focus needs to be on whether the economic model used to make these job forecasts is reasonable,” Bernstein says. “Is the regional center invested? Has the developer “contributed” to the project? Is the regional center's success tied to the investor and the performance of the asset? If a loan-based model, ensure the project is sufficiently collateralized and that the investor's interest is not subordinated to a massive bank loan. Above all, seek qualified help to evaluate the investment.”

You can still read parts one and two of this interview: Taking the Mystery Out of EB-5 Regional Centers and How EB-5 Helps Transform Communities.

MIAMI—What do EB-5 investors and developers need to know about regional centers before jumping in feet first? We asked Roger A. Bernstein, who co-owns an EB-5 regional center in Miami called American Life Investments LLC, for some insights.

For an investor to have good results, Bernstein tells GlobeSt.com, it requires due diligence on the investor's part as well as a combination of a skilled immigration lawyer and an experienced regional center. With that, he offered a few suggestions:

“Choose experience,” Bernstein says. “While excellent past performance is no guarantee of future success, it certainly is a strong indicator. Research or request from the regional center their statistics on approval rates. A substantial record of I-526 and I-829 approvals is one of the best indicators of success.”

Next, he points to velocity. What is the capacity of the regional center to expeditiously market and sell its investment units? How many investors is it attracting on a monthly basis? In which countries is it active and having success? Bernstein says to be be wary of overly ambitious projects if there is no track record of raising funds expeditiously.

“Your investment is at great risk if the management team is unable to bring the project to fruition,” Bernstein says. “What is the general partner's experience in managing multi-million dollar projects? What projects has the partner successfully completed in the past? Make certain that the regional center has a familiarity with the EB-5 program and understands its responsibility to complete the project and create the requisite jobs.”

In terms of job creation, Bernstein suggests evaluating the methodology for creating jobs. In this case, developers should take a conservative approach in estimating indirect and induced jobs. Ask yourself, “How many direct jobs will likely be created?”

“The central focus needs to be on whether the economic model used to make these job forecasts is reasonable,” Bernstein says. “Is the regional center invested? Has the developer “contributed” to the project? Is the regional center's success tied to the investor and the performance of the asset? If a loan-based model, ensure the project is sufficiently collateralized and that the investor's interest is not subordinated to a massive bank loan. Above all, seek qualified help to evaluate the investment.”

You can still read parts one and two of this interview: Taking the Mystery Out of EB-5 Regional Centers and How EB-5 Helps Transform Communities.