A requirement of the EB-5 program is that the investment must be “at-risk.” That being said, it is very important for the client to know the developer. Some common questions would be:
- Reputation of Developer
- Does the developer have bank references?
- Developer Equity
- Developer Experience in Asset Class
- How many years of experience on this type of project does the developer have?
- How many projects have they started and completed?
- EB-5 experience
- Has the developer successfully raised EB-5 capital in the past?
It’s crucial to analyze these issues in order to minimize risks of the project being completed and operational, as that could impact job creation and capital repayment. In the case of the Four Seasons New Orleans project, the developer – Carpenter & Company – has more than 120 years of experience in real estate development ranging from hotels, to office buildings, and shopping centers. Moreover, they have successful past EB-5 experience with the Four Seasons One Dalton project in Boston.