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CGS3 Building Innovation Series: Panel on EB-5 Financing

April 8, 2015 CGS3 Building Innovation Series
SAN DIEGO (April 8, 2015) – The federally funded EB-5 visa program, which allows foreign nationals to obtain a permanent U.S. visa by making a job-generating investment in this country, will be discussed in detail during a client event hosted by Crosbie Gliner Schiffman Southard & Swanson LLP (CGS3), on Thursday, April 16.

The event – to be held at the CGS3 offices for clients and invited guests – starts with a networking reception at 5:30 p.m. followed by the panel at 6:00 p.m. with David Jacoby of the Las Vegas Economic Impact Regional Center and Phil Jelsma, CGS3’s newest partner and chair of the firm’s tax group. Jacoby and Jelsma will address:

  • Why and how an immigrant visa program can be a viable source of financing real estate deals
  • Expected timing and costs associated with raising EB-5 funds
  • Recent trends/acquisitions, including specific deal structuring trends and key projects
  • How investors are sourced
  • Key requirements for EB-5 financing
  • The process for developers must follow to prepare an EB-5 offering
  • Tax planning and implications
  • The formation of special entities and structuring associated with EB-5 Funds

As chief operating officer and co-founder of the Las Vegas Economic Impact Regional Center, Jacoby has helped raise $150 million in EB-5 funds. He is also chief operating officer of Lucky Dragon Hotel & Casino, overseeing all development activities.

“The EB-5 Visa, authorized by the Immigration Act of 1990, is a complex process that offers real estate developers, lenders, private equity funds and others intriguing opportunities for financing real estate projects and ventures,” Jacoby explains.

While the program initially fell short of expectations, after customs officials streamlined the process, demand for EB-5 financing hit record levels in August 2014 – so high, in fact, the program was suspended for two months.

Jelsma and Jacoby will provide details on why and how an immigrant visa program can be a viable source for financing real estate deals and describe the key requirements for EB-5 financing. Jelsma, who is widely recognized as one of the state’s leading joint venture and tax attorneys with a nearly 30-year background in real estate exchange transactions, will address the tax planning implications, as well as formation of special entities using EB-5 funding. “The program has significant tax implications, so it is important for people considering this option to plan accordingly,” he said.