Frequently Asked Questions
Why American Venture Solutions Regional Center? Key Investment Considerations for Prospective EB-5 Investors
What distinguishes American Venture Solutions from other majority of EB-5 regional center investment opportunities stems from the fundamental business reality behind each AVS project…before EB-5 foreign investment is injected as a capital resource. AVS Projects will always have several critical things in common:
- A seasoned management team with a track record in the particular business sector…not “newbies” experimenting with EB-5 capital
- A substantial equity investment on the part of the General Partner or Principal; EB-5 capital supplements intelligent investment projects instead of providing uncontrolled speculative investment schemes by principals with no “skin on the game”
- Job-generation and capital expenditure is tracked on a real-time basis in ALL AVSRC projects, insuring that the Project remains on track with I-829 deadlines
The principals and institutions associated with American Venture Solutions have long and prestigious backgrounds in land development, project management, and entrepreneurship. They have been heavily invested – financially and personally – in numerous industrial, real estate, and development ventures, and in immigration compliance associated with investment-based immigration, for decades. Today, it is the caliber of the AVS team and the prudent and fair use of low-cost EB-5 capital to create a new American jobs through the American Venture Solutions Regional Center which sets AVS apart.
American Venture Solutions Regional Center was created to identify qualified and accredited EB-5 investors who are looking for BOTH U.S. permanent residency AND a chance to prudently and responsibly invest in America. America needs the jobs, and it is only after two decades and much exploitation of EB-5 investors where major U.S. industrialists are entering the EB-5 arena with a keen understanding of“the deal” as envisioned by the U.S. Congress 20+ years ago:
Invest in America through a fair deal and with prudent U.S. investors, provide the capital they need, create the jobs, and everyone wins.
Risk is part and parcel of an EB-5 investment and anyone who tells you otherwise is lying. Choose your U.S. partners wisely, and you will control both the risk of financial loss and the risk of having your permanent residency denied at the I-829 level. Ask the right questions…and the answers speak for themselves:
How does the program work for EB-5 Investors?
Each group of SEC-accredited foreign investors will invest $500,000 each (plus a $40-50,000 syndication fee, depending on the project) in the specific Limited Partnership created for their particular AVSRC EB-5 Project. Investors fund “first come, first served”, that is, the slots for the particular Limited Partner positions are filled in the order funds hit AVS escrow at JP Morgan Bank. The investment funds will remain in escrow with JP Morgan Bank until the I-526 immigrant petition – filed via the investor’s immigration counsel at his/her expense – is approved by the USCIS, at which point the investment is released and put to work.
Upon approval of the petition, funds are disbursed into the specific Limited Partnership for the particular AVS project, which in turn provides the funding for the direct creation of job. Each EB-5 investor is granted one Limited Partnership share. Depending on the project structures, the EB-5 funds are either invested as a 5 year loan wherein the Limited Partners received a small annual return on their investment for the five year period and a balloon repayment of the investment at the end OR as an equity investment in which the EB-5 investor simply participates as a Limited Partner sharing the risks associated with the particular project. Very generally speaking, the loan-based structures are better suited for EB-5 investors who are interested in capital preservation while the equity-based are for more aggressive investors who are looking for potentially significant returns via subsequent IPOs or Project sales by the General Partner.
Who is the General Partner of each AVS Limited Partnership project. The?
American Venture Solutions Regional Center was conceived by the Lindemann Group as a way of seeking foreign investment capital for a broad scope of projects. The majority of AVS EB-5 Projects will originate from Lindemann Group investment activities; in such cases, AVSRC will be the General Partner overseeing the Limited Partnership in which the investors invest. AVSRC will also consider a variety of highly scrutinized, fiscally sound EB 5 projects in which the Lindemann Group is not involved. In such cases, the General Partner will be the principal Behind a particular project. In all AVSRC projects, Lindemann or non-Lindemann, strict supervisory control is delegated by the project to American Venture Solutions Regional Center to ensure that all EB-5 Compliance requirements, including funds expenditure and job generation, are strictly followed to the letter of the law.
How can I be certain that the business activity in which I am investing through American Venture Solutions Regional Center is economically feasible?
AVS will not undertake to represent any EB-5 project unless economic feasibility has been assessed via a strict Due Diligence Review by AVS management. In most cases, which will involve Lindemann Group Capital Ventures, such review will have occurred prior to the consideration of EB-5 capitalization.
For example, consider the initial AVS project, Lake Point: Lake Point’s property, through repeated independent geological tests, had been confirmed to contain significant, high quality reserves long before EB-5 financing was considered. The materials are currently being extracted via the limited land preparation activity underway, but will launch into full scale extraction with EB-5 funding. Some of these, as enumerated below, have already received Department of Transportation certification, clearing the sale of the material for public road, bridge, and other public infrastructure usage. The site is:
- Currently producing FDOT certified shell rock base code B11;
- Currently producing 57 stone;
- Currently producing currently certifying 89 stone;
- Currently producing District approved Rip Rap (the large broken rocks used to protect marinas and waterfront areas from storm damage;
- Currently producing dry screenings, washout sand and fill;
- Currently producing asphalt screenings being sold to American Engineering, East Coast Paving and others for use in their asphalt plants;
- Minable reserves of approximately [60] million tons of limestone aggregates with a 25-30 year development/mining plan;
- 60 million tons is in best 1,000 acres at 20’ depth
American Venture Solutions Regional Center reviews over 40 new perspective projects for inclusion within the EB-5 jurisdiction every month. In the past 12 months, only to suitable non--- Lindemann projects have been considered; both of these involve major public companies whose brands are household names on a global basis. No project will ever be considered under AVS Regional Center unless AVS management can look a prospective investor in the eye and speak confidently about both the control financial risk and secure immigration structuring of the project.
Other Regional Center investments promise the construction of modern new buildings, ambitious projects, huge job generation numbers…but I have noticed that AVS EB 5 projects are much smaller in scale, generally speaking. Why is this a good thing?
AVS Principal and Center Counsel José Latour has over 20 years managing investment-based immigration projects both within the EB-5 category as well as other immigrant investor mechanisms. Historically analyzing the many failures within the EB-5 sector, it is evident that the risks are substantially higher for the EB 5 investor with projects a vast scope and magnitude. José believe there is a simple explanation: under the USCIS – defined rules regarding "material change", it is simply impossible to structure a mega-project with the necessary agility and nimbleness to survive in what is admittedly a still somewhat volatile economy. By selecting manageable size projects which are already operational and creating manageable tranche investments permitting reasonably sized groupings of EB-5 investors, project principals can adjust prudent business practices on a real-time basis, reporting any necessary "material changes" on an annual basis to ensure continued USCIS compliance.
The principals behind American Venture Solutions Regional Center are businessmen and women who focus on developing profitable businesses; their respective records of success speaks for themselves. Similarly, the legal and financial team behind the compliance responsibilities are committed professionals focused on preserving the integrity of the immigration benefits sought by EB 5 investors. Put simply, AVS’ mission involves the intelligent stewardship of the EB 5 capital and watchful management of regulatory compliance on behalf of its EB-5 investors. The objective is clear: to realize permanent US residency for our Project Limited Partners while preserving investor capital through conservative financial strategies.
Given that that building construction is slow in the current economy, doesn’t that mean that demand for construction materials is low?
Yes and no. While the demand for private construction development is indeed low, President Obama's stimulus programs – and those of all President’s in the past two decades -- have set aside many billions of dollars for the development of US infrastructure. It is historically proven that infrastructure is a long-term investment which jump starts job creation during difficult economic times. For this reason, the improvement of highways, waterfronts, and a vast array of public infrastructure projects has become the hallmark of the President’s stimulus initiatives.
Again, consider Lake Point, AVSRC’s initial EB-5 project: the aggregate rock materials excavated from Lake Point are precisely the raw and processed products used by state and federal Department of Transportation, private sector contractors, and countless other enterprises in the manufacture of cement, asphalt, and a broad spectrum of construction materials. In fact, as the economy recovers, demand for these materials is expected to grow; it is precisely for this reason that the General Partners concluded that EB 5 capital would be a prudent way to launch new operations and jobs designed to meet this growing demand.
Similarly, AVSRC's future healthcare, residential, and energy construction projects throughout Florida, Georgia, and Tennessee will be responsive to the socioeconomic needs of a recovering American society. It is the very ability to acquire these raw materials, and vast tracts of real estate at the optimal prices associated with difficult economic times, which provides real investment growth opportunities for investors who are primarily focused on securing their US permanent residency.
Who currently purchases Lake Point’s aggregate material?
Government and quasi-governmental projects account for approximately 65%-70% of current sales, either directly or through contractors For example, the Lake Point has a standing contract to supply all base rock to the County on all Martin County jobs. Lake Point also supplies material to valuable conservation projects such as the JW Corbett Wildlife Reserve, the Hungry Land Wildlife Preserve, the historic Port Myakka Cemetery and the DuPuis State Preserve.
In December 2011, the U.S. Army Corps of Engineers issued Lake Point’s final mining permit, which will allow full aggregate rock harvest in conjunction with the water management and wetlands restoration activities. This is the first full scale aggregate rock mining permit issued by the Corps in Florida in decades, providing an ample resource for both private and public construction as Florida's economy continues to recover.
Re the Lake Point Project: while the business activity is clear, how does the land grant aspect of the project affect EB-5 Limited Partners? Does this increase risk?
The agreement by which the owners of the 2200+ Lake Point property convey title to the South Florida Water Management District is a detailed document with enforceable stipulations which ensure that mining activity must be realized in order for the transfer of lands to occur. Moreover, the strict 7 year compliance period associated with the disbursement of US Treasury New Market Tax Credits assure EB-5 Limited Partners that their permanent residency will be long secured before such time expires. Strategically, all of this puts the Limited Partners in an advantaged position when compared to other EB-5 were opportunities lacking governmental supervision.
How does the for-profit rock extraction become an environmental bonus in the Lake Point Project? It seems contradictory.
When the Lindemann and Rusbridge group identified the property, it was slated to be a large, luxury polo community. The impact on job creation would have been minimal. Instead, through the identification of valuable rock reserves, the owners realized that in the process of extracting the valuable minerals, the needed ecological improvements relating to water management and wetlands could be undertaken simultaneously.
Working with the South Florida Water Management District, the U.S. Army Corps of Engineers, the Florida Department of Environmental Protection and other agencies, Lake Point is a work in progress where selective rock extraction activities leave behind the lakes, channels, and other environmental areas designed by the agencies involved, ultimately restoring a priceless piece of Okeechobee land to full environmental and public best-usage.
Specifically (and subject to future modifications made by the various agencies defining the environmental engineering), the property is being developed into a +/-1,000 combine acres of lakes and a 1,200 acre Stormwater Treatment Area to be donated to SFWMD and Martin County, thus creating tremendous goodwill in the community and from environmentalists. The acquisition/donation has been approved unanimously by both the Martin County Commission and the South Florida Water Management District, who now have a binding contract.
While the 20 Lake Point Eco-Ventures Phase I Limited Partnership EB-5 Investors will secure their permanent residency through five year, low interest loan investments, the 20 Lake Point Capital Partners Limited Partnership Investors will be investing directly as Limited Partners of the owners of Lake Point Holdings, in hope of a substantial return on their investment at such time as the General Partner determines a liquidation event is most favorable.
If the Lake Point Property is so environmentally important, why was it being developed as a residential community?
Like much of the land in the area, the Lake Point property had been used for agricultural purposes historically. The prior owners determined to create a luxury community. The South Florida Water Management District had in the past attempted to purchase the property in the past for upwards of $50 million due to its unique location at the junction of the C44 canal, Lake Okeechobee and the L-8 waterway extension. Moreover, the Property has three key pumps into and out of the C-44 and Lake Okeechobee. The sale never happened simply because the District did not have the funding. Now, thanks to the Lake Point project, the public will be the recipient of this rare resource, with infrastructure for water and wetlands conservation ensuring its continued contribution to Everglades restoration.
How will the Lake Point property help the environment as the aggregate rock and earthwork moves forward?
Because of the mineral composition of the lakes left by the excavation, the Stormwater Treatment Areas will serve as “kidneys”, purifying water from Lake Okeechobee before going down the C-44 canal (to the St. Lucie River and Estuaries) or the L-8 waterway extension (which feeds the Loxahatchee Wildlife Reserve).
The property is adjacent to the 21,875 acre DuPuis State Reserve Area, so in effect the wildlife conservation aspect will increase DuPuis wilderness protection areas by over 10% once the mineral extraction process is complete. All in all, the project will create 800 acres of additional wetlands and 200 acres of buffer areas, in addition to the water deployment lakes.
What is the significance you keep mentioning regarding the fact that the project was underway before seeking EB-5 investors?
Of the 200+ approved EB-5 Regional Centers, only a small fraction are active in any form of actual business activity apart from marketing projects to prospective investors. In a climate of economic boom, promises of vast job numbers and high returns may be credible; in the current economy, such claims are highly suspect.
Lake Point is already funded, already operating via private capital and lenders BEFORE EB-5, and has received a record-- setting $56 million in New Market Tax Credits. The site was purchased, and had initial startup capital expenditure funded by the owners in excess of $60 million, and performance is proven: limited operations under prior residential zoning generating strong financial performance…
- Over 2,000,000 tons of material have been sold since activity began in February 2008;
- Farming and cattle operations, which currently occupy +/-200 acres and +/-450 acres of the property, respectively, generate approximately $160,000 and $25,000 respectively;
- Backlog of over $6 million in orders to be sold over next 18 months or less. (NOTE: EB-5 capitalization in the new business activity will directly create the jobs needed to meet this demand, which will geometrically multiply when the new enterprise begins expands activity.
- Government and quasi-governmental projects account for approximately 65%-70% of current sales, either directly or through contractors, implying strong stability and continued sales even if downturn continues. For example, the Company has a standing contract to supply all base rock to the County on all Martin County jobs.
- Already supplies material to valuable conservation projects such as the JW Corbett Wildlife Reserve, the Hungry Land Wildlife Preserve, the historic Port Myakka Cemetery and the DuPuis State Preserve.
