SOLUTIONS FOR EB-5 INVESTORS
As part of the largest private equity fund manager in the Tampa Bay area, we were approached in 2008 about developing a safer and more professional solution for EB-5 investors.
A Diversified Fund Model
The vast majority of EB-5 projects involve investing in a single asset – the EB-5 applicant invests in a hotel, apartment, office building or casino. This model involves a lot of investment risk because if the project fails, the investor can lose 100% of their money.
We developed a model that is rather unique in EB-5. Each of our investors owns an equal share in a Fund that invests in a portfolio of projects, not just one, thus diversifying the investment risk. Investment risk is spread amongst the entire portfolio, much like a mutual fund.
The concept of diversification is that if one asset in the portfolio underperforms, the other assets in the portfolio should make up for the loss. This diversification helps prevent loss of capital so that our investors can safely get their money back – with profit – in addition to their green card.
Sourcing and Negotiating Investments that Benefit the EB-5 Investor
We review over 300 investment opportunities each year from some of the best real estate developers in the United States and only select a handful that not only meets the requirements of the EB-5 Program but also are safe investments that generate profits. We focus on making investments that are based on safe underwriting assumptions, and only partner with established, proven developers/operators who have a solid track record for success. This is critical in ensuring each project’s success and is a key factor in protecting our investors’ capital.
We negotiate an investment structure that benefits the EB-5 investor, not the developer. This includes structured exits in each of our projects so that capital can be returned after the investors receive their permanent green cards. We also maintain control through board participation, and actively monitor our investments to ensure success.
We Stay Actively Involved
Once the EB-5 investment is made into each project, we stay actively involved in the entire process. We monitor construction and spending and get involved in any issues that may arise. We receive 50% of the board of directors’ seats and not only have a seat at the table, but also maintain control over major decisions that could affect the immigration status of our investors, the value of the asset, and when projects get sold.
Our Interests are Aligned
Our interest is truly aligned with our EB-5 investors. We are also incentivized to invest in safe, but profitable investments. Upon liquidation, we return capital to investors first, before splitting profits. So, if the projects do not return capital and make a profit, we do not make a profit.
By doing this, we are able to provide EB-5 investors an institutional quality investment, versus just a green card.
A REAL PARTNER PROVIDING REAL BENEFITS
We are not a developer selling you our own projects. We are experienced real estate investors and private equity fund managers, who work for you.
OUR REGIONAL CENTER
Atlantic American Partners co-owns and operates the Florida Equity & Growth Fund Regional Center. Designated by USCIS on January 9, 2009, our regional center is approved to invest throughout the entire state of Florida. While we do invest in projects outside of the State, we like to invest in Florida for a number of reasons.
By population, Florida is the third largest state in the US, with 20,984,400 people. Because of its warm climate and lack of state-level income tax, Florida continues to grow with a net in-migration of about 1,000 people per day. This population growth drives the need for new apartments, hotels, retail space and office space – making Florida a great place to invest in real estate development.
In 2017, Florida’s Gross Domestic Product (GDP) was $967.3 billion – the fourth largest in the United States. Florida does not have a state-level personal income tax, making it an ideal place to run a business.
Strong Job Growth
In 2017, Florida created 195,000 new jobs and most of the cities we invest in lead the country in metropolitan area job creation. These strong statistics show that Florida continues to be a national leader for job creation and signal a growing state economy.
© 2018 Atlantic American Advisors, LLC
101 E. Kennedy Blvd, Suite 3300 | Tampa, FL 33602
+001.813.318.9444 | firstname.lastname@example.org