(By Brian Su) I was often approached by EB-5 project developers for answers on how investors are procured in China and how fast the funds would be wired into escrow accounts in the US. The following procedures are typical for many emigration agents that provide services to EB-5 investor families in China.
1) Investors come to seminars to learn about EB-5 project which is represented by emigration agents, if they are interested, they will sign Consulting Service Agreement with the agent. If investors are not interested in the project, they will keep shopping around with other agents. An investor usually attends over a dozen of various EB-5 seminars prior to making a decision on which project or agent he wants to work with.
2) When an investor signs Service Agreement, the agent will set up an appointment with the investor to introduce emigration procedures and provide project documentation for him to review. The agent will follow up multiple times to answer questions. If investor likes the project, he will discuss in-depth with the agent. If he dislikes it, he will wait for a new project. Some investors may wait for a long time till they find a project they feel comfortable with. The decision of coming to US is often discussed among family members and relatives, it is life changing decision, you can imagine that it is a very difficult decision for many investors. Investors may also have family matters and financial issues that may drag the process.
3) During the service, the agent will start helping the investor to prepare necessary paperwork; providing guidance on source of fund verification; advising the investor to prepare funds. Gathering fund for many investors may take time as they need to determine which method (selling property or borrowing a loan) could pass the verification! This process takes a month or longer. Some investors may take a year to get through the process.
4) When the above work is near completion, agent will advise the investor to make final decision to sign the project subscription agreement. Typically agent does not want investor sign subscription agreement until the investor can truly demonstrate he has sufficient money to invest (some people have to sell property in order to gather funds). The agent does not want someone occupy the slot and never get funds in place in a timely manner.
5) When investment fund is ready, the investor has to select 11-12 friends and relatives to wire money into his account at a Hong Kong bank. Many investors may have to fly to Hong Kong to wire the entire fund to a US escrow account. This takes a while for investor to fly to Hong Kong on his own schedule. It is very usual for investors to complete the wire in a month or even longer.
Overall process is time consuming as investors spend time to conduct their own due diligence on projects. Agents usually try to push the envelop. However, investors have full control over the pace.
Please keep in mind the investor procurement requires a lot work and time between agents and investors. Agents cannot call clients on daily basis because they do not want to push investors away. When working with emigration agents in China, provide your best support you can while not being pushy. When constantly pushing agents to meet goals or timeline, opposite results may occur.
For more information about marketing EB-5 projects in China, contact us today at info@ArtisanBusinessGroup.com or join us in Chicago July 15.
1) Investors come to seminars to learn about EB-5 project which is represented by emigration agents, if they are interested, they will sign Consulting Service Agreement with the agent. If investors are not interested in the project, they will keep shopping around with other agents. An investor usually attends over a dozen of various EB-5 seminars prior to making a decision on which project or agent he wants to work with.
2) When an investor signs Service Agreement, the agent will set up an appointment with the investor to introduce emigration procedures and provide project documentation for him to review. The agent will follow up multiple times to answer questions. If investor likes the project, he will discuss in-depth with the agent. If he dislikes it, he will wait for a new project. Some investors may wait for a long time till they find a project they feel comfortable with. The decision of coming to US is often discussed among family members and relatives, it is life changing decision, you can imagine that it is a very difficult decision for many investors. Investors may also have family matters and financial issues that may drag the process.
3) During the service, the agent will start helping the investor to prepare necessary paperwork; providing guidance on source of fund verification; advising the investor to prepare funds. Gathering fund for many investors may take time as they need to determine which method (selling property or borrowing a loan) could pass the verification! This process takes a month or longer. Some investors may take a year to get through the process.
4) When the above work is near completion, agent will advise the investor to make final decision to sign the project subscription agreement. Typically agent does not want investor sign subscription agreement until the investor can truly demonstrate he has sufficient money to invest (some people have to sell property in order to gather funds). The agent does not want someone occupy the slot and never get funds in place in a timely manner.
5) When investment fund is ready, the investor has to select 11-12 friends and relatives to wire money into his account at a Hong Kong bank. Many investors may have to fly to Hong Kong to wire the entire fund to a US escrow account. This takes a while for investor to fly to Hong Kong on his own schedule. It is very usual for investors to complete the wire in a month or even longer.
Overall process is time consuming as investors spend time to conduct their own due diligence on projects. Agents usually try to push the envelop. However, investors have full control over the pace.
Please keep in mind the investor procurement requires a lot work and time between agents and investors. Agents cannot call clients on daily basis because they do not want to push investors away. When working with emigration agents in China, provide your best support you can while not being pushy. When constantly pushing agents to meet goals or timeline, opposite results may occur.
For more information about marketing EB-5 projects in China, contact us today at info@ArtisanBusinessGroup.com or join us in Chicago July 15.
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