PALMS RESIDENCES IN BAY HARBOR ISLANDS, FLORIDA Bay Harbor Islands, FLORIDA
Evaluation of Risk for EB5 Investor
This is a small-size easy to build residential project already in construction and generating the jobs required by the EB5 VISA Program.
By the time the EB5 investor subscribe his capital into the project in order to formalize the Greencard petition through I526 a proportion of the required jobs may be already created.
In addition to low risk in job creation the investor is in Senior position by providing a secured loan to the developer that will bridge to cover already invested funds and that have already created jobs.
The funding structure used by the developer in this project is:
.- Developers Equity: USD 10,257,397 (52%)
.- EB5 Investors Contribution: USD 7,000,000 (40%)
.- Other source of funds (pre-sales): USD 1,555,371 (8%)
No bank developer finance the only loan is the EB5 investors capital.
The exit is after I829 approval with the recovery of the capital but the developer is giving the option to convert the EB5 capital into property ownership with sales price based on the day of the EB5 investment.
From job creation this is a highly competitive project since a proportion of the jobs has already been created. According to the Economic Job Impact Analysis jobs are created as per the following:
PROJECT YEAR JOBS CREATED NUMBER OF EB5 INVESTORS SUPPORTED
2015 41 4
2016 122 12
2017 67 7
Total 230 23
So by 2017 the total number of jobs created may be equal to: 163 and may support a total of 16 investors.
We build the EB5 program only to support a total of 16 investors so by totay while “you” the reader have not invested yet your I829 should be already secured.
The only thing required is to prove through accounting documents that the developer company has used to funds to build the project and please note that today the project is almost 65% already built.
Total Investment Required
USD The investment is estimated at US $ 19,812,768.
Capital Stack:
Developers Equity
USD The investment amount of the construction company is USD 10,257,397.
EB5 Investors Contributions
USD The total investment amount of 16 EB5 investors is USD 8,000,000.
Other source of Investments
USD Estimated pre-sales will be USD 1,555,371.
