One of the backbones of the EB-5 industry is the requirement to charge administrative fees.
These typically range from $30K to $60K on top of the $500K capital investment. The capital investment must be at-risk at all times, so no expenses can be deducted from that amount.
The reasons for the administration fee are numerous – but deep down, most law professionals understand this is just a way to pay distributors!
Ellis Island Capital thinks this needs to change, so we are proud to announce that we are offering a project in downtown NYC for 0 administration fees.
Purpose of administrative fees
Let’s go back a bit and determine what are the purposes for administrative fees.
The purpose of administrative fees is to pay the expenses incurred in the process of offering the project. These costs include:
– Marketing expenses—cost of attracting investors.
– Administrative expenses—payments to lawyers, economists, and other consultants who help ensure the project is EB-5 compliant.
– Agent commissions—finder’s fees for agents who recruit investors.
These fees are charged by EB-5 regional centers and is unrelated to the initial $500K investment required by USCIS, and do not count toward it.
Ellis Island Capital has developed a process to market EB-5 projects online while eliminating the middleman by going directly to the project. This lets us offer high quality projects, at a rock bottom price!
We have no independent agents.
Our staff conveys the offerings and lets investors make the choice of what project best fits their needs.
Our current zero fee project is in the heart of Manhattan just off Times Square, is fully financed (no finance risk), and is fully constructed (no construction risk).
This new project saves investors $50,000 on your EB-5 investment.
We currently have one project that we have approval to sell with zero admin fees, and we have more coming soon.
We want to change the way people begin the EB-5 process.