The administration fee (Admin Fee) is charged by the New Commercial Enterprise (NCE) to the investor. There is no requirement that an Admin Fee be incurred in an EB-5 offering, but most offerings have one. The Manager of the NCE collects an Admin Fee to offset their costs, often those...
The administration fee (Admin Fee) is charged by the New Commercial Enterprise (NCE) to the investor. There is no requirement that an Admin Fee be incurred in an EB-5 offering, but most offerings have one.
The Manager of the NCE collects an Admin Fee to offset their costs, often those associated to payments to the regional center and agents involved in the transaction.
If an investment does not require an Admin Fee, I suggest potential investors review the offering documents to figure out how the Manager is earning their fees. In my experience projects that are having trouble or are desperate to attract capital are the ones that waive their Admin Fees.
Admin Fees can sometimes be negotiated, but not always. Focus on selecting the best investment you can, which means the investment involves experienced people including the Manager who looks after your investment capital, and the developer or business management team.
Also look for the best investment terms and make sure the project has a solid financial position. After identifying a few ‘best’ investments, see how much the Manager might negotiate the Admin Fee.
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GCBI TeamThis post was modified 9 months ago by
GCBI Team