EB5INVESTORS.COM
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There are many important cultural dos and don’ts
when making contact and following up with Middle
Eastern investors. No matter how you approach the
client, though, eventually you’ll have to slay the two
giant elephants in the room to close the deal. The
first is when they say, “Why should I invest $500,000
in American real estate projects when I have far more
flexibility and better returns investing at home? How
can a green card be worth that much?” The second
is, “Why in the world would I take money out of my
tax-free Middle Eastern investments and place them
under America’s tax regime?”
“
55 % of the HNWIs
surveyed across the Middle
East said the increasing
geopolitical tensions in the
region have affected their
investment decisions.
They may word t hese concer ns more tact f u l ly,
but you won’t convince them of the value of your
service unless you can answer these two questions
clearly and with specific examples. On the plus side,
that’s not nearly as difficult as it sounds. You can
focus to turn these challenges that scare off other
wealth managers into opportunities to broaden your
clientele base. the options that U.S. residency grants them, as well as
the stability of the U.S. real estate market? According
to the 2018 GCC Wealth Insight Report by the Emirates
Investment Bank, 55 percent of the HNWIs surveyed
across the Middle East said the increasing geopolitical
tensions in the region have affected their investment
decisions. 1 That number rises to 75 percent among
respondents in the UAE wealth management market.
CHALLENGE ONE:
LOW ROI ON INITIAL INVESTMENT Investing in the U.S. is more than just a safe way to
diversify their portfolio; that green card serves as a
coveted insurance policy against all sorts of financial
t h reat s. Prote ct i ng capit a l from u npred ict able
geopolitical risks is a challenge for all international
investors, but one that’s easier to guard against when
you have permanent access to America’s financial
markets, visa-free travel for you and your family, and a
stronger legal standing in U.S. courts.
Avoid the urge to gloss over the details or hype up
the rare successful outliers. Instead, impress them
with your knowledge of both the risks and big picture
rewards. The cold, hard reality is that the average EB-5
visa applicant investing in regional centers will see
little or no return, let alone one that exceeds inflation.
Your typical client’s initial investment isn’t going to
go into a high-dividend REIT, property speculation
in a hot market like San Francisco Bay Area, or major
commercial projects in Manhattan. With the way the
program is structured, their investment options are
limited on purpose to the least desirable markets.
Between the generally lower profits and increased risk
from developing in rural or high-unemployment areas,
requirements to create 10 full-time jobs and other fees,
the majority of investors will be lucky to see a 1 percent
yearly rate of return during those first six years.
So we must address this issue early in the meeting.
With this major obstacle out of the way, you can focus
the prospect’s attention on the long term and less
easily quantifiable advantages of a green card. If you’ve
done your homework on your prospect’s unique needs
and family situation, you’ll have a good understanding
of which points they are most interested in, but here’s
the quick-reference summary.
RISK MANAGEMENT
Your prospective clients might be drenched in the mantra
that diversification is the key pillar holding up all risk
management strategies. But do they really appreciate
For e x a mple, i n t he e vent of sudden sa nct ion s
by t he U.S. gover n ment or t he i mplementat ion
of capita l cont rols i n t heir count r y of orig i n, a
U.S. resident would still have access to American
banks and the international SWIFT system. They
wou ld have ma ny more opt ion s compa re d to a