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AWorking jobs. So we are both currently in the process of the EB2 green card. However, they're both from India. And so that means that the EB2 wait times for us are extremely long. And not only that, like, that that has made us consider other options. But then also because of the EB2 process, we are facing a lot of, like, we are stuck in our careers. Like, we're not able to switch jobs because of the green card process. That takes two years to happen before we can switch jobs. So those are the reasons that we've been considering the EB5. Sajan, do you want to add to that?
BNo, not really.
AYeah, and then, yeah, we've been considering the EB5 visa. So we are very early into our research about the ET5 and we're looking at, I mean, we've been looking at different projects and trying to figure out which scenes are best fit for us. What are the timelines like? So we have a list of questions that we wanted to ask you, but if there's anything other than that that you think we should know, we'd love to hear that as well.
COh, it sounds great.
AOkay, perfect. Sajan, do you want to start?
BSure. Yeah. Like, I mean, could you start with like, just like, what is the approval rates for like your i526E applicants? Sure.
CWell, currently we are 100 of approvals. We also have the fastest green card ever issued in the program, which was in four months. EB5 United now is the biggest racer in the EB5 industry by a long shot. We have been doing, you know, we have been doing rural for over 10 years now. And rural is the actually the only option, you know, to consider if you're Indian born or have an Indian passport. Right. So we're growing a lot also. We have I5 to 60 approvals as fast as 29 days. But, you know, we have 30, 31, 32. Those are different countries. But, you know, we have one of the biggest, probably and most interesting situations for people that are, that are born in India or have an Indian passport. And it's because we have over 500 investors that are from that are Indian born. So we have a WhatsApp group with all of them. And it's great because you guys can, you know, hear their stories, you can put a face to the numbers. And also, you know, people share their stories. How fast are their approvals? You know, when someone gets an approval, they generally share their timeline. So people can understand what is, what is the average wait list. But in terms of Approvals, we're around six months at average from six to eight months. And every week on the group, we share the. The amount of approvals that we have that week, that specific week, and on average is around 15 to 17 approvals per week.
AI see.
BGot it.
CYeah.
BAnd what about, like, have you seen any denials at all and.
CNo, no, no, not at all. The only the. We also, you know, I think that probably what made us search in the CB5 space is because the way that we structure our deals and also because we al always have an i5 to succeed in our guarantee that that was only used twice. One, because one investor did a bitcoin source of funds early in the days of bitcoin. And then, you know, he didn't have these statements to. To prove where the money was coming from. That's when we had to reimburse him. And also one that we drew their applications. They, you know, they went through RFP and annoyed process. I don't know if, you know, you guys know what is rfp Annoyed?
BI don't know noid. What is.
COkay, no, NOID is no Notice of Intent of Denial. So when he got the noid, he simply didn't respond it. And, you know, he approached us and he told us, look, I decided not to go for EB5 and he got his money back. That is the only two cases that we have used that clause over the last 15 years.
BOkay, speaking of that, like, you mentioned, like, getting the money back. So what? So on denials, do you return the 800k invested as well as like, any. Any sort of fees on top or how much, like, what part of the investment is actually returned?
CYeah, it is the full investment on your. On your situation. Guys, I know you. This will be specifically done because EV2 is that backlog and so you won't have any fees with me. Okay. I'm also, as you can tell, an immigrant. So, you know, all I want, all I will do to help you guys, I will do it. Okay, so no fees on our side. So if you for some reason get a denial, you're gonna get your 800 back.
BOh, got it. And what about, like, what do the fees like the RC, the regional center admin fees typically look like for EB5 United? And is that like, dependent on the project?
CNo, every single one of our fees is. Well, it is basically standard. Yeah, it's $80,000.
BOkay.
CSo I'm waiving $80,000 on your fees.
BOkay.
AI appreciate that.
CNo, yeah, of course.
ACan you talk to us about like the pro. If we were to invest, do you have like a couple of projects that you can talk to us about what's actually like available?
BNo, before that I also had like a more questions on like we can go get into the projects for sure. Like how many. What is the median timeline of like funds being returned on an investment?
CYou know, it is for us, as you can understand. Right. So DB5 sphere is divided into. Right before the Reform Integrity act and after the Reform Integrity Act. Right, The Reform Integrity act happened in 2022. Right. So that's when there's a statement period change that was the. When the loan maturity changes. And you know, a lot of things happen after that law came into be. So we haven't had in no regional center has any repayment track record within these two years. Because it has only been two years that the actual effective law went into curse. Right. So anyway, in June of 2022, so you know, having already a project that was ready to raise funds started, you know, at the minimum in 2023.
BOkay.
CRight. So yeah, so that's important. But on our past cycles, it's extremely interesting. We have tried always to provide the repayment as fast as possible. We have one developer actually that probably is why we're now the number one in the industry is because we have the only active developer that has returned EV5 funds, anticipated that the loan maturity date. So this is important, guys. So you know, back in 2020, the loan, you know, before 2020. Because 2020 was when the program got suspended. Every loan maturity date was for five years and extensions. Right. And it will go up to nine years. Right, Four plus one year extensions through all my career. I'm doing this since 2013. So it's a while now. And I have worked with multiple regional centers. So I have seen all what has been going ongoing in the industry. You know, your average developer will pay you in six to eight years.
BOkay.
COkay. So we're working now with the only developer that anticipated EB5 funds having a loan maturity date of nine years. Well, five years. And plus the extensions, he repaid that money in three years, not once, but twice.
BWhich developer is that? Just out of curiosity?
CCross Harbor Capital Partners. They own basically all Montana. Yeah. And we have been working with them for over 10 years. And you know, it's for everyone in the EB5 space doing rural. It's like, you know, inventing the wheel because, you know, all the projects were in Manhattan, were in big cities. Right. Because the law actually permitted for you to raise money in Places like this. And that's why, you know, repayment track records and all of that will showcase projects in the middle of the cities. But you know, having a company that is experienced on what rural projects, there's none, just us.
BOkay.
CSo that's why we're the biggest force now in the market. Because it's simple. It's simple. We have been doing this for a while. Our raises were never that high. Our numbers were never that high because we were doing rule. So if you back in the day were to choose to invest in Montana or in another rural area versus invested in Manhattan, of course you will do Manhattan. Right. It is a no brainer. So but now the rule is the thing, because we have that experience and that track record, people you know, are only doing business with us. We are now, as of the last numbers of IUSA conference, we are 34% of all the market share. So everyone has a student rule. Out of the 800 EV5 regional centers that they are, 34 of those individuals are choosing us.
BThanks. Okay. And, and do you guys use an external audit for the jobs that are created per investor?
CYes, of course. Of course. So that's a great thing about EB5 United. Everything that we do is always, since our early beginnings, we were always to believe that the only, you know, actual at risk situation that we will put our investors will be at a senior loan level. Right, right. So this is new to the EV5 space as well.
BSo is that also. Is that you saying that you don't take any like bank loans which will be like more senior than us?
CNo, because if you put a bank on it and you know, there was a trial fire for most of the regional centers and when Covid happened, all the banks wanted to cash out. So they liquidate the project and the EV5 investors get the scraps.
BYeah.
CSo, you know, we never believed that mezzanine loans were the right choice. Right. So that was also something that has made us surge in this market. Because we have the only EV5 project that was able to go through a Category 5 hurricane. You know, we took the, the project, took the Category 5 hurricane right in front of it, which was our four seasons in Puerto Rico. Once again, a rural deal. Right. It took a category five right straight from the bat. The developer was putting $300 million and 120 out of EP5 investors and literally the project was destroyed. So the developer. The developer, because it didn't have any senior lending situations, he got a junior lending that went rebuild, restructure. Everything was ongoing, was Going great. And out of nowhere, Covid hit. Right. And when that happened, the developer in 2021 was, I, I cannot take this. It's impossible. You know, it was, it was a big hospitality group and because they didn't have any nights, they didn't have any actual revenue coming in. Right. They defaulted on the loan, we took over the project and it's probably our most successful deal. Everyone got their green card, everyone is getting their money back. And for each year that they stayed longer in the loan, we're paying four times their interest. And that is what has made us the biggest in the market right now. Because we are the only ones that after Covid were in good standing.
BGot it. And, and, but like for. Is there but like a specific auditor you use for.
CYes, yes, yes. So we have third party audits on job creation. We have third party audits or either in the project. For example, Yellowstone Club, we have a third party audit that is done monthly. So you guys can see the full development but you guys can also see the pre sale deposits, which is great. You can see the homes that have already been sold. You can see the money there. And you know, on our project, our project Lakefront, we have appraisals for the land for basically all the value. And you know, we're always. Another great thing about EB5 United, every single deal that we make, we, we demand our developers to put at least 40% of the capital stack.
BGot it. So low leverage.
CExactly. Low leverage, always. And this is a rare thing to do because if they were to a bank, the size of those developers will get them, you know, they will need only 20% down. Right. 80%. The other thing can be leveraged. So you know, it's a, it's hard to work with us, but at the end of the day we're working with the EB5. Right. So if we're putting someone, you know, we have to put it at risk, we will, you know, diminish that level of risk.
BOkay, sounds good.
CAnd also another thing that sets us apart is because we do target demographics and purpose driven audience. So what is this at the end, right? What is what, what does this means? We only work with developers. That will give us a full credibility and a full line of what are going to be the sales and how the project is going to be finalized so that we can from day one understand that our money will be there when we need it. So that's why when we do target demographics, for example Yellowstone Club, the members here are Bill Gates, Mark Zuckerberg, Elon Musk, Jeff Bezos and over 867 individuals that are the most powerful individuals in the world. So they are not affected by economic cycles. Right. And this has already been proven by the sales at the Yellowstone Club and we have already 20 homes that have already been sold for $700 million. And it's a project that you guys are even thinking about investing but has already the funds to pay you back. That's a really rare scenario. Right. Then our other project, Lake Run, same thing. Target demographic, purpose driven audience. So we get approached by multiple developers, same as people like you that want to know and do EB5. There's a lot of developers that, hey, EB5 might be a good chance. So we talk to a lot of developers every single week and we select the ones and filter them by this specifics, target demographics, purpose serving, audience. We have to understand when we are getting the funds and that we don't have to refinance, we don't have to do anything like that so that we can protect always our investors. So the other project, lakebrand is a Hadistic Jew community. Right. And we were building the first Hadistic Jew community and this place right here was fully sold out with zero marketing dollars.
BWhere is this by the way?
CAt the lakefront, Florida. Okay. Near Lake Okeechobee.
BI see.
CSo why we did this? Because the developer approached us and was like, well, in New York we're facing, there's a lot of people of my community facing antisemitic talks. You know, we're having a lot of issues. Real estate is went through the roof now. You know, members in the community have to rent a 10 story apartment on the, on the 10th, store on the 10 level on the 10, 10th floor. Sorry for my English. I do Brazilian and Spanish so I talk the three languages all day. Sorry guys. So they have to walk down the stairs on Shabbat. So imagine walking 10 stories down just to go to the synagogue. You know, it's, it's something that is, is happening. It's an ongoing situation. So on this project we have 15,000 applications to get a home here. All the commercial space have already been leased out. A supermarket put $1 million as non as priority rights just to put their place in there. Because we're bringing the community, you know, we're bringing for those commercial spaces, your buyers, right. You're gonna have over 5,000 of your buyers in that specific area, which is unique. Right. So we have application, the developer has applications from even outside the US of people that want to Go to this community because you will have synagogues, it will have migbas, it will have everything that they need. But it's impossible to have. So that's how we mitigate risk. We when we understand how to mitigate that risk through doing a good bought out of a business. Right. So that's why, you know, also it's a different trade and you know, I'm happy to tell you guys, it's rather unique in this city. 5 space. You know, we won't be. We won't do your average resort, your average hotel. We won't go over, you know, like this is a great place. This is a great situation. People are, you know, see the trends, how much is the price of the lots, how much is, you know, we don't do that at all. We don't do in based in markets. We do it based in facts. So if we can be factual, we can be extremely objective as well with our clients. We can let them know when things will happen at the end of the day. So both of our projects are great and you know, I don't know if you would like to hear them both. Do an overview of both or we can dive into one and then afterwards we can dive into the other one because both of them have a lot of specifics that you guys will like.
BOh sure. I also see another one, I'm not sure if that's still being offered, which is the Teton Outing Club.
CYes, yes, yes. Teton is also there. There's also Long Cove. Long Cove is great because you and Titon as well. Titon is a smaller project and it's based on, you know, the low level of demand that this area Jackson Hole has. You know, Drix is an important area. So we're doing small development. Little less than 30 homes are going to be built there. And it's an interesting project. I mean if you guys like little deals, we can go into that. There's also Loncope, which is great, is a community that's already an existing community. And the developer has built this all with his own funds. He has never taken a bank loan. And also he is, he owns all the land and he has the most exclusive community without the out of Dallas. You know, the most important families are there. It's a networking place, same as Yellowstone, just a different level. But the great thing there is that you're getting 200% coverage on your EB5 investment. And the capital stock is wild. I mean it's 60. No, let me just double check those numbers because it's Incredible. We just got this presentation today so it's not even there. I don't, I don't know if you guys can see Long Cove there.
BOh no we don't.
COkay.
BAt least on your website. Yeah, I mean it'd be nice to know like the macros of each project before we like dive into one.
CYeah.
AAnd if there's like any timelines about by when we would need to invest or like when the project is ending, maybe that helps us narrow it down.
BYeah, exactly. So Lanco.
CI know you guys are gonna like Lanco because I, you know we haven't put it in the market but I know that this will be gone as soon as it's live because the developer is putting 87% of the equity.
BOh wow.
AOh wow.
BAnd like no mezzanine loans.
CWe would be no mezzanine loans. It's just wild. Like all our projects are like that. So you know, going on, on the, on, on the overall situation, it's okay. So you have longo 87 of the. I'm. Let's talk about the capital stacks and, and you know that is an easier way to understand you know like the bottom line of each project. Right. So long ago 87% developers equity. Tetan is a little less and I need to pull the latest information on that. So I won't, won't mention that for now but we can do that in a follow up call. So lakefront, lakefront is 70% of developers equity. But that developer's equity will be reinvested by every home that he sold. Right. So as soon as he deliver he has to put more houses and more houses, more houses. So it's, it's a cumulative situation. Right. Yellowstone. Yellowstone is 45.7% of developers equity. That is that sums up at $505 million that have already been put in and are fully audited. And he has already sold 20 of those of the homes were set a little shy of $700 million to repay the $600 million CB5 loan. And you know it's probably the only project I can say that you guys can get your money back without even investing the only, you know, even, even you know, Lonco being that great. Of course, you know they have to make the sales and things have to happen. You have all the coverage, you know, with all the developers equity. But you know it's a rather unique trade. So you know the three of them are probably going to be the best three that you're gonna hear from any other company. So because you, we are Unique. Right. On this scenario, we. We are just unique. We always work senior lenders and with this capital stacks.
BMakes sense. Makes sense. And so that would make like. So you're taking like a 600 million dollar loan for the Yellowstone Club, which. Which is about 80, 70 EB5s. Sorry, 700 EB5s.
CYeah, 700 EB5s.
BCorrect.
CGreat. MF.
BAnd what about the Longo and Lakefront?
COkay. Long Cove is a smaller race. It's. It's $40 million. Okay. $40 million that we're raising on EB5.
B50.
CAnd I'm sorry, so.
BSo 50 investors, right?
CYeah, exactly.
AYeah.
CAnd with LAKE Rent is $200 million. That will be 250 investors.
BGot it. And like, what is the current subscription on each of these? Because that helps us decide.
CLike, oh, all our projects get full pretty fast.
BOkay.
CLike we, we actually raised for Yellowstone. It took probably less than 15 months to get $449 million there.
BOkay.
C562 investors, you know, and the rest of the 150 that we're racing now, it's gonna be. It's probably half already and it's only been four months since this project is live.
BOkay. Okay.
CYeah, so they get filled pretty fast. Also. Lakefront. Lakefront, it's around. I'm gonna check Salesforce. Just give me one second. Just to give you the clear number.
AIs there any chance, Philippe, that you could sell. Send us some documents, just a quick summary of these projects about where they're located?
CYeah, yeah, of course.
AThe capital stack that you're mentioning right now, it's a bit hard to like, keep track of all the numbers.
CYeah, I know, I know.
AIt's pretty nice.
CThere's so many projects, but I'm gonna send you all of them. You know, I'm gonna say Lakefront and, and send you Yelps. So those are the two first. And then later on I can send Death and Longco, but those projects are, you know, we're just basically launching them and Drix, you know, well, that. Then it's one offering that we put in the site because it's a really small offer and, you know, it's gonna be full pretty fast as well. But I don't know if you guys would like to dive now into a specific one. And then, I mean, Yellowstone is great. Lakeburn is great, you know, based on whatever you guys want.
BYeah, maybe we can discuss just before we step into the project details. I think we can start with Yellowstone, but also, like, do you have recommendations that you give out for, like, specific immigration attorneys that people tend to.
COh, yeah, yeah, of course.
BOf course.
CThat's the only thing that we demand, right, is that you guys work with a good immigration attorney, because that is the only liability within this process for you and for us. Because if you guys don't, you know, we will have to refund money. And, you know, so if you guys are working with an entertainment that is not proficient in EB5, you know, I will have to inform my team that this is happening. And so that, you know, because we want to keep our track records as well, and you. We want to keep you guys safe. But you can go with anyone in the industry, but I can recommend you the top 20 if you guys want, you know, like.
AYeah, someone who's done a lot of maybe Indian applications, who, in your experience.
CSure. On my. On my point of view, you know, based on RFPs that we get from clients and that, you know, like, one that I love working with is Neer Al Patel from kod.
BYeah, we're speaking to him.
AYeah, we're speaking to him on Friday.
COkay. That's awesome. Yeah. So, you know, if you guys want to have his personal phone number or if you guys already have it, great. But otherwise, I can do the introduction for WhatsApp, and that. That way you guys can reach him through WhatsApp as well.
BCool. Yeah. And any other names, Maybe you can send it later.
CYes. Christian. Christian. Christian Trampolis from Jackson Walker is amazing. George Ganny, Lonnie Law. That's amazing. I mean, like, all of them are great. You know, I. Darren Silver, Joey Barnett and I can go on. You know, the list is important. All of them are great attorneys. We have worked with all of them. We have cases with all of them. All the ones that are in EB5 are working with us.
BGot it. Cool. Yeah, I'm gonna. I mean, I'd appreciate if you could, like, send us a list of, like, five.
AYeah. If you could just maybe put these names in, like, a email.
CYeah, yeah, yeah. And, you know, guys, I can create WhatsApp groups. You know, that way you guys can have their phone number, contacts. It's also more personal because you guys can reach out to them, you know, like, send a WhatsApp message instead of actually just waiting through an inbox, you know, that, you know, doesn't arrive or they're. They're full then. And their secretary is the one that is responding instead of the actual attorney. Right. That's why I think it will be important. So I don't know if Any other questions?
BNo, I think we can. We can go ahead.
AYeah, please go ahead.
COkay, so this is Yellowstone Club, right? This won the top project award winner. This was a competition that was done by agents within the EV5 investors summit. Right? This is a summit where all the regional centers go and they participate with their EV5 proposals and the agents that are the ones that are specialists in selecting projects due to the economics, to the job creation, to basically the track record, you know, all the metrics that are necessary to be analyzed. So it's important that we want this through the agents and not through clients. Right. Because the agents are all these companies that are just focused on selling EB5. Right. And representing clients. So yeah, we want that word. And it's basically this, right? It's. It's an interesting story. This is the most exclusive place in the world. It's a club that you can only get access through an invite and also to by purchasing a real estate there. You have to be a homeowner to be a member and you have to receive an invite to. To become a homeowner. Right? It's not just having the money will get you here. So what is this place? And this is mentioned by Forbes and it's all over the media because it's a really public place and also a real tangible protection as well. Because you know, the last thing that the developer will want is a whistleblower of a loan that is not being repaid. Right. And that's why you can actually measure that through their behavior throughout the years. Because they repaid the loan, they anticipate funds two times. Okay, so this is a priority processing tea rural. We got approvals as fast as 29 days. Your first position on collateral. And well, this, this was the award that we won all the agents there. This is a look at the Yellowstone Club. It's a really. It's a. It has over 28 years since it started this community. It has the most influential people in the world and also is being recognized as the billionaires networking hub, one of the only ones networking hubs for billionaires. So it's really an impressive area because the way that this was mapped out by the developer is simply impressive. And you will see it as soon as I go with this presentation. And that's why we have to do this for each project because each project has a story behind it. So phase one, fully repaid in three years. Everyone got their green card, everyone got their money back. So we're doing the second phase. This second phase is the last land, the Last properties that will be ever available at the Yellowstone Club. This will be the top of the membership quota within the Yellowstone Club. So this is one of the most sought out assets for billionaires that want to get inside the Yellowstone Club or own a property here. That's why within two years of construction, you know, the construction will end in 2027 and you can see that 20 homes have already been sold. So these are the construction site photos of April 2025. We just got a new construction update on, on for June, which is great. You can see the units, the purchase price. Duncan goes over the purchase price when it was bought. You know, like how many bedrooms, how many bathrooms. Right. So all these apartments will, you know, all these condos will have around 6,000 square feet. We do investors visit as well. If you guys want to go. I will be delighted to take you there and also to, to share you a little bit more. You know, probably the most beautiful place in the world. And well this, this one, it's all by, by the IUSA data of September 11th we were 55. Now you know, a lot of people have shift into row. Now we're 34%. But this is including all the companies that are over 800 companies that do this. So our past offerings, you can see our past projects. But let's go into the details of the project. Right. So this is the safest DB5 model with loan security at first position to the project. 20 of those homes have already been sold. Sorry, I opened one that is not updated, but have already been sold for $692.6 million as of June 2025. Phase one is fully complete with visa approvals and 100% of the EB5 loan repayment in three years. Also, the project has a construction completion guarantee. This is important for you guys as well because not every single company will provide a completion guarantee. But this is extremely important when you're in a senior lending situation.
BYeah.
CBecause your asset will reach to the top of its value and also the jobs that you are creating will be created. Right. So it's a huge security not only on the financial side, but also on the job creation side. So this is when we estimate when we will be delivering the last building. While Cross harbor will finalize the building into Q3 of 2027 and the homes will be delivered to the homeowners between Q4 and Q1 and 2 of 2028. And that's when the loan is expected to be repaid. Cross harbor is probably the strongest and biggest developer working in rural as of now, over $34 billion in transactions. They are a firm based in Boston and they have done over $16 billion in the Big sky region alone. This is their fourth EV5 project with Cross harbor and Big Sky. The EB5 race was done for $24.5 million and the loan was fully repaid. EB5 second race 55.3 fully repaid. We did the third race with them as well. 173 for the one and only Moonlight Basin. And this is the fourth DB5 project that we're doing with the same developer. DB5 is secured in the first position on collateral which includes all the assets of the project. Yellowstone Club is considered the most exclusive place in the world. 60% of the units have already been sold. This is the last land that will be ever developed in the Yellowstone Club. And the developer is putting 45.7% of total project cost. And the initial loan term is for three years. This will end in 2027. December 2027. And those extensions will be used in the case of your sustainment period hasn't been used or completed so that your green card can be protected.
BGot it. And only in that case. Right? It's not extended.
CIn.
BIn the case what happens like if the.
CNo. Imagine this developer, you know by the ppm. As soon as he reach 80% of the sales he has to repay the loan. He cannot get any proceeds if he doesn't repay the loan. So he. You have the developer in a huge lockdown situation to repay the loan in 2000.
BAnd that's part of the legal contract.
CYes, Yes. I will add you guys to it.
BOkay.
CThat is the ppm. And then afterwards, you know this overall presentations are nice, really beautiful to see. But then afterwards when you guys want to dive into more the specifics we can do this presentation but only in documents and pointing out pages.
BYeah, I definitely would love to like look at all the legal documents as well.
CYes, Yes. I will add you guys to the share file. The only thing that I need from on your side is an investor questionnaire that Harsh will send you guys that will has to be filled out. And then afterwards I will add your book.
BSure, I'll do that.
COkay.
AYeah, sounds good.
CBy the way, you guys are married, right?
BNot yet, but.
COkay. You guys have to get married. That's another thing that I need to ask.
BYeah, we also wanted to.
DYeah.
BSpeaking of marriage and like scheduling these things like what kind of payment schedule does EB5 United require? Like do they need the 800k upfront? Or can you co sign on a initial like say half the amount or 600k and then we can bring the rest?
CYes, yes, we can do half of the amount now and then, you know, give you guys some time so that you guys can put up the rest.
BOkay. And so you can like essentially what happens is we can file the i526 as when we have half the amount and so like. And like proof of the rest and, and over a period of three to four months, pay the rest out. How does like what is the time?
CFour months.
BFour months, yes.
CYeah, exactly.
BGot it. Sounds good. Yeah, I think we can continue.
AYeah, sorry.
CYeah, so no, no problems. Please, please interrupt me any, anytime. So this is, this is an impressive picture because here you can see how big and how massive this developer is because in 2009, where there was the real estate crisis, they decided to purchase the Yellowstone Club in all the area that surrounded the Big sky resort. So basically they own all the land that can be developed within this area. And you know, it has produced over $16 billion in profits and you know, probably the most successful rural constructor and, and also he has standardized, you know, the level, the exclusivity that surrounds the Yellowstone Club to make it more appealing as well. And that's why one and only, which is the, one of the most luxurious brand in the world, decided to open their first property in the US here. So Yellowstone Club was fully repaid in three years. And the other one that we don't talk about, remember that this payments Yellowstone Club. It's important this repayment happened in February of 2020. So probably the worst time of economic economy. And also, you know, the interest rates were not as the level that you know, for him to pay. If he waited it out probably like eight months, nine months, he will get a better interest rate. But he didn't. He repaid everyone back in three years. Which it showcased not only you know, how strong and how good this developer is, but the moral fiber that he has. You know, he will commit to everything that he states on. And this is what happened as well with Montage. Montage, you know, it was repaid in full in three years, in eight months. This is another impressive trade because you know, your average developer within this lot, you know, like loan maturity dates for five years, will repaid in six or seven years. He repaid two projects in three years. And also another interesting thing about this that it gives you, you know, the full understanding of how this developer works and how, you know, how mastermind he is. And I fully Recommend you know, to. In this presentation you guys will have podcast and he tells his story and, and what he envisioned, you know, as a group back. Back in 2009 when, when they took the bold move of actually purchasing the Yellowstone Club. They did this, you know, this hotel here. They sell their nights from $1,500 to $23,000 per night. And you. And you can tell me who in their right mind will pay $23,000 per night. It looks nice, but you know, I mean, it's not a $23,000 per night. Yeah, but so that now you can understand that this night will get you a day pass to. To the Yellowstone Club.
BOh wow.
CSo now you can understand why this is the biggest networking hub in the world because people will come here and stay for two weeks paying $23,000 per night just so that they can find Bill or Mark. And actually instead of having all that grid to go through secretary for CEO, you know, from multiple levels, just to talk to him, you know, they pay their nights here and they can go.
BI see.
CSo you can understand the idea, the purpose. So it's. It's extremely interesting. And well, this is one and only, right? First. First one and only. In the US it is CV5 fully constructed and also has the fastest green card that this program has ever issued. That was in four months.
BNice.
CThis person got approved in 30 days. When with I485 they received not their EAD and AP. They received their green card in four months.
BWow.
AWow.
BSo the when. When your I526 is approved is not when you get your green card. It's when your i485 is approved.
CI mean, when you. It can happen. You know, you. You can get your i485 approved and then afterwards.
BOh, so you need both approved is when you get your finger.
CYou need both approved to get your green. Okay. And.
BAnd how come like how did this happen in four months? Like is what was there something special about this particular case or.
CI mean, as. As everything, right? When you think in Nissan, you think in a great car, you know, but when you talk Ferrari, you there's no questions asked. Right? So this developer and the projects that we have been doing with them, they're so, you know, everything that we do is I 95 6F so we work with the best attorneys doing our. Our documents as well. At the end of the day, you know, if you demand that your EB5 investors get a good attorney and they have a good offering, great project, you know, it's A no brainer for the auditors. When they see the project they, they will have a fast approval. That's why, that's why I, I encourage you guys later on, you know, send me your WhatsApp so I can add you both to the group and that way you can see all the experiences, people talking, you know, we share every single week the amount of approvals that we get. So you know, and you will put faces to this type of things and people will say, well I got my EAD at this time and my AAP and also attorneys are there so you can ask legal questions, get response. Nero is there, you know, Darren Silver is there, Joey Barnett is in that group as well and over 485 members and all of them are, you know, in your scenario they're either in EB2H1B, TNS L1A. So like all, all US based, all are applying for I485 which is great because you know it's, that's, that's also another thing that we're different that sets us apart from everyone else because we try to be as transparent as possible so that people can share their experience. Because at the end of the day this is a family process and it's a great way to do networking as well. You can meet people that are in your area and it's nice. I Love that about EB5 United. I work with other regional centers, improve my career and I have never seen anything like this.
BSo I just enter like emails and numbers in the zoom chat, in the.
AGroup, in the chat for this meeting.
COkay, great. I'm, I'm, I will get them copied and put it and add you guys. Okay, so every single month we do multiple audits, right? So we do a construction update. We go and see that everything is moving, jobs are there, jobs is being created, fast paced on the visual side. We have to control it, right? So we control it on the visual side and send it over to our, to every single one of their investors. So when you invest with us, you guys are going to have a investor portal access. This investor portal will only have your detailed information, your immigration information, your position back and forth with USCIS so that your attorney and you guys can have it all in a safe, safe, splendid, safe place, right? An intended place. So you're going to have construction updates, sales updates on the property, on what is happening within the sales of the, of the development, job creation updates and also a third party audit of what is happening with project cost, how is ongoing, how is within budget, everything that is ongoing. So you know, it's something that is rather unique of EB5 United.
BOne last question, like before we end this call, you also mentioned like you, you, you'll be like willing to waive the ATK for us, the admin fees, the 80k USD. Like how come you're like EB5 United is willing to do that? Because it seems like, that seems to be like the standard. I mean.
CIt'S because you got me. Basically my peers will always start at 25, 25, you know, thousand. But you know, Duncan and Matt are, they are us born. You know, I, I have behind this phase there's a story, there's a, you know, father and mother that suffered, you know, to get me here. So I will always do my best from the start because it's what you guys deserve. It's not, not, you know, non negotiable and I would like, you know that my father got that, you know, like help. But of course, you know, it is a rare thing to happen. So I mean, I mean I get it that you know, EV5 United has to make a profit and all of that. But of course we, you know, if we have a reason, if we have that capability as you know, the people that are, you know, talking to you guys, how in a moral way, I cannot offer you the best from the start. This is just who I am basically. It is just basically on, on the individual. But if you were talking to Duncan, it will be 25,000 probably.
BOkay. Thank you so much for generosity as well.
CI mean like my best friend did be five and you know, I met him through this process and we are best friends now. So this is a long relationship that we're building until you guys get repaid because we will be together for a while and of course I want to, you know, start the right thing the right way. Right. With the right foot.
AYeah, just thinking of you. Really appreciate that, that's truly generous of you. Thank you, Philippe.
CNo, you, you're more than welcome guys. That's, that's what you guys deserve. Okay, I'm happy to do that. So getting back to Yellowstone. Right. So as I mentioned, right. The thing that you know that I love about this project is that it has been proven to be recession resistant. Because in 2020, 2021, 2022 were the best selling years of properties here. And when your average Property is around $14.4 million, it's take a lot. This last properties that we're selling will be at the average of $38.4 million. So it's a lot of money for a second home. But when you understand, you know, that for this billionaires this isn't significant, especially because there's the only safe, you know, intended area where they can do business, they will gladly pay it. So this is the last residences that will be ever built here. And this is by invite only. When we did first phase YC, phase one, the square feet was sold at $2,650. But members that are willing to risk, that are reselling their properties are selling those for 5,500 to 6,500 square feet. So you guys will be in control of the most expensive asset in the world. And when you're doing EB5 if you have that type of collateral, it's a great situation. Yeah, yeah, of course, for sure. So due to the well of its members, this is a quote that we took from Forbes because this is a really public project and it appears in Forbes and every single financial magazine and you know, Vanity Fair or you know, all the biggest publications out there. And they say due to the wealth its members, many consider the Yellowstone up to be recession. This is, and you know, this is a quote from them. But we have the fact that it is based on the numbers. So these are the current membership. There's 867 members that are from a lot of places of the world and it's limited to 914 memberships. To be a member here you have to pay $120,000 per annual dues on a four bedroom. Most of this units will be eight bedrooms. So it will be around 240,000 plus an initiation fee of 750,000 and purchase a residence, a residence that an Average price is $15 million if you're doing, you know, other properties. But now the only active inventory that they have new inventory is the Yellowstone Club phase two, which is $40 million.
BGot it.
CSo also this is one of the biggest skiable acres within the US you can see that Jackson Hole, Bureau Creek, Deer Valley, Delaware. They're all behind the Yellowstone Club. They have over 3,400 acres. And combining with the big Stage sky, it's the biggest skiable place acreage in the US as a whole. So having control of all the properties that are out there, it's extremely incredible. So this is the podcast that I was mentioning. It is a great story behind the man, the, you know, the company, the developer, the way you can think that, you know, how, how have they done business and how, how successful they have been through all, all of these years and Basically what we're doing as an EB5 fund is this. They're building the last five, 35 private residences. An average sale price of $38.48 million. 60% of those units have already been sold, were $692.66 million. There's only 15 residences remaining. And it's a simple capital stack. No loans from any bank. We're lending the developer 600 million. He has already put 505 at 45%. 45.7% senior lending situation. Yeah, we don't work with anything of this. We don't do anything like this. Yeah, this is too much risk for our clients.
BYeah, thank you for all this information. And we, I mean we're running a little short on time. I think we both have calls right after this. But would definitely, I would definitely love to like go over all the projects, other projects that we talked about as well and like if you could share those, would definitely want to like have a look because we might also consider going with like a smaller offering rather than such a, such a huge one. But we, we still like as we said already and need to, need to like still think about it a little bit.
CNo, yeah, of course guys, I mean whatever, whatever you guys feel comfortable with, I'm happy to help.
BYeah.
CThere's also another thing that I wanted to share. Oh, sadly it's not here and I don't have it so. But you know the audits that we do for this project, you can see the pre sale deposits of $344 million already in the bank of the develop.
BOh, okay. Okay. We and happy to like sign the questionnaire, the investor questionnaire and send that over so that we can access these documents as well.
CYes, of course, of course. I will, I will ask, you know, harsh to send it over. I have it right here, so let me pull that up for you. So this is a third party audit that we run through the project. You know, I won't take too much of a time but this is a status development, status update every single month. We get this, you guys get it on your investor portal. This is done by Baker Tuli so you can understand, you know, the company. So this is the total project costs and budget. How are we advancing, what are the cost to date, what is the total job cost, where what is the overall in the capital stack. But the most important thing here that is extremely valuable is this. The Developer already has 304, $344 million in pre sales and process representing a 40% down of each Home that is being sold. Makes sense. So, yeah, where he will have in 2027, as soon as he wraps the construction, deliver the homes, a capital event that will represent 60% of the full closing on the home. So, yeah, you'll be able to repay everyone back. And that is probably the only project I should say this from, from, you know, the start.
BGot it. All right. Yeah. Thanks, Philippe.
AThank you. Thank you for your time, Philippe. It was really lovely talking to you and I'd love to follow up on this.
CNo, that's awesome. And it was great meeting you both guys. And you know, we can talk later after Lakefront, but I'm gonna send you this email with the Yellowstone Club. You're gonna have more of the documents and later on we can do a call just on, you know, specifics of the PPM and what to do. We will take from there.
BOkay, perfect.
CThanks.
AThanks again.
CTake care, guys. Have a great meeting.
BYou too.
DHello, Estrajan. How are you?
BHey. Hi, Nick.
DVery nice to meet you.
BNice to meet you as well. I'm just gonna wait for Meha to show up as well.
COkay, great. Absolutely.
BBut yeah, I mean, I can give you like a small, like, introduction to us before. Before she arrives.
CWhatever.
DWhatever is best for you. Please go ahead.
BYeah, like just to give us, give you like a small background. Like, we both moved to the US in 2022, I think 2021, actually, for, for our master's degrees. And we've been working since then in New York for about three years now. We're both on H1B visas and like both our companies have applied for our EB2 and we're in the process of the like, of like filing for a green card that way. But as you know, like, we're from India, so like, we're stuck. We would. Even when we get it, we would be stuck in the backlog for like 20, 20 years now. So that's not really a feasible, like, plan for us. And so, yeah, that's. That's basically why we're like looking into the EV5 and seriously considering it at this point.
DVery good, very good. Thank you for joining. Nice to meet you as well.
CAnd did I see in your folks.
DNotes, are you guys in Jersey City? New Jersey?
BYep.
DYes, that's where I live.
CThat's why I asked.
BOh, amazing.
DYeah, I live up, I live along the waterfront between Newport and Exchange.
BOh, we live in Newport.
AYeah, we live in Newport.
CReally?
BYeah.
DOkay. I could probably see your building and you probably see mine. One of those buildings in front of the DJs by the light rail.
BOh, okay.
AAll right. Got it.
BYeah.
DHow do you guys like it? How do you guys like being in Jersey City?
AWe really like it.
BYeah. Personally, I mean, we both lived in Manhattan before this, and, like. Yeah, I feel like the quiet that Newport offers is just. For me, it's, like, way more valuable than, like, access to the city or something like that.
DYeah, I think it's the best of both. I mean, you have the access.
BYeah, yeah. Best of both, for sure. Yeah, the access is there and, yeah, it's just more bang for your buck and like, just quieter and. And the best view possible as well.
DFantastic. It's great. It's great. It's just so convenient. And I lived in Hoboken, New Jersey, for many years, and now my wife and I live in Jersey City for the last few years and our office is down on Wall Street. That's where I'm. I'm at today. And it's just so convenient, you know, I take. I take the light rail right into Exchange, hop on the ferry, and eight minutes later, I'm right on Wall Street.
BYeah, it's great.
AYeah.
BNice.
DAnd you guys, know, you come back home to New Jersey, you just kind of just feel just the energy calm down, right?
BDefinitely.
AYeah. That's the first thing you notice. It's how much quieter and calmer it is.
DYeah, It's. It's to me what I like. It's quieter and calmer, but it's not a ghost town. Like, you still walk everywhere. You have access to everything. There's shopping mart, supermarkets everywhere. It's the nice middle ground. Well, I'm glad you guys are happy.
AYeah.
DWhat kind of work do you both do?
BWe're both in tech.
AYeah.
BOkay.
DWhat companies?
AI work at Dell.
BYeah. And I work at a smaller software company called Rippling. It's a. It's a HR management solution.
DVery nice. And I guess obviously you gave me a little background for. On about your, you know, what you are and, you know, waiting for your ED2, but when did you start thinking about 85. Have you been looking into ED? Five weeks.
BExactly two weeks ago.
AYeah.
DVery good. And by chance, have you started speaking with any immigration attorneys or.
CNot quite yet.
BWe spoke to one this week and are speaking to another on Friday, so that's okay.
CYeah.
DWho you speak with?
BWe spoke with Rakesh Patel from the Patel Group, and on Friday we're speaking to Neera Patel.
CYeah.
AYeah.
DWell, they're both great. They both have been in EV5 for many years. And they're both just. Just nice guys. So I think you're in good hands with either of them.
CNice.
BYeah. That's good to hear.
AYeah. If you have any other recommendations also, we're very happy to speak to them as well.
DYeah, I would be very comfortable with you working with either of those attorneys. I mean, how I think about, I guess ultimately both your regional center selection and your immigration attorney selection is really kind of twofold. I mean, for both counterparties, I think it's crucial to work with someone that has a lot of experience. You know, EB5 is certainly a specialty product within immigration, and there's lots of immigration law firms out there. But like any discipline, it's really crucial to work with a specialist. I always think about medicine. You know, you're not going to go to a stomach doctor for a heart issue. You shouldn't go to an H1B attorney for an EB5. But both of those gentlemen are great. And then outside of that, just someone that you're comfortable working with. Because both the attorney you choose and the regional center you choose to work with will likely be in your lives for the next, you know, six or seven years. And you deserve a lot of service. Obviously, this is a very big investment. It's a very personal investment for your family. And you want to make sure you get that service not just in the beginning of the process when you're making your investment, but through that entire six or seven year relationship. So choose people that have a lot of experience and just choose people you're comfortable with and you feel like you're going to get that service from.
BThat sounds good. Yeah.
DSo, yeah, I mean, there's other attorneys out there, but I. I would say why don't you start speaking with those gentlemen first, since you're already kind of engaged with them and if for any reason you feel like they're not a good fit fit, you know, let me know. I'm happy to make some other recommendations, but I would certainly never steer you away from either of them. We love them both.
COkay.
BYeah, that's. That confirms some of our beliefs.
DYeah.
AYeah.
CGreat. So.
DSo my typical scope of a meeting is first, obviously to get to know the family a little bit and understand what your circumstances are, and then maybe to talk just a little bit about the EB5 process, especially if you just started two weeks ago. Maybe it might be good just to refresh the steps in the process, who the counterparties are, and then to talk a little bit about can am, you know, who we are in the industry. What is our experience and our track record? And in some cases it makes sense to talk a project about projects already. In some cases it doesn't. I guess you may not even know this yet. Obviously you're just starting to speak with attorneys, but have you already kind of one decided that you want to do EB5 and if so, you know, when you want to do it? You know, some families, especially when they're just starting, are many months away from, you know, proceeding with filing an EB5 application. And some people have decided they're doing this and they want to file as soon as possible and then everything in between. So kind of where are you in that landscape?
BI mean, I would, I would assign like a probability of like 70 to 80% that we want to do this and if, if we do resolve that to 100% in the next couple of weeks, we want to do it fast in the next like one and a half to two months at most. So we want to move really fast.
AYeah, but yeah, the only, there's only a couple of things. One, I, I understand that both of us would need to be married for that, and we're not married yet, so that would need to be done before we start anything in the EB5 process. And then also in terms of funding, so most of our fundings here, but some of it will come from India. So just the amount of time it takes to, you know, transfer that fund start.
BAlthough, although I suspect that shouldn't be a blocker since I've heard like most regional centers are. I don't, I'm not sure about cana, but they're willing to like co sign on like receiving half or like some, some portion of the funds and then it is okay for us to like paid out over the next couple of months or so.
DYeah, that certainly every regional center handles that differently and we do allow for that at kn, but it really varies by the project. You know, where we are in the raise and you know, how much time we have with the specific borrower we're working with for our current project. You know, let's say assume that you guys want to decide that ET5 is right for you. That's a very personal decision. So you got to figure that out on your own. Of course, if you like our current project, for example, we can allow funds in our current project until the end of October. So that would be our limitation with our current project. So if that works for your timing, great. And if not, you know, obviously there's other, other Regional centers you can work with. And we will have other projects after that. But if you wanted to file in the next few months, that would be our limitation with our current project.
BNo, that makes sense.
AAnd I think that works with our timeline as well.
DYeah, for sure.
COkay, great.
DWell, I'm going to share my screen and we're through some slides that I think kind of facilitate the conversation. And you know, I certainly do have a lot of, I think important information that I would like to share with you. But I'm the first to admit I kind of have a bad habit of talking too much during these meetings. So please stop me and ask questions at any point. And I'm not sensitive. If you want to skip anything, just say, you know, Nick, we can skip this part. We can move on.
ASounds good. Perfect.
CGreat.
DLet me share my screen and we will get started.
CSorry.
DSorry about that. My screen should pop up in just a moment.
AYeah, we can see it now.
CPerfect.
DWell, again, just to start, I think it is helpful just to kind of refresh the actual steps in the immigration process. Process, if you folks are comfortable with that.
CYep.
DSo step one obviously is just, you know, coming to terms as a family if this is the right decision for you. And I feel like that's not, you know, any regional center's job to try and convince you to do EB5. This is a big investment. It's a very personal decision. So speak with attorneys, evaluate your options and find out if EB5 is right for you. And I always like to talk about the reasons why people decide not to do EB5. You know, there's reasons why you should can think, you know, maybe this isn't a good fit for me. And one is obviously just the size of the investment. Obviously it's a very big investment. Also when you make this investment, you need to be comfortable knowing that your money is going to be invested into a project for about five to six years. So the money will not be liquidly available. So that's something you have to be comfortable knowing you won't have access to that money for about five or six years. And then another financial consideration is this is not a traditional financial engine investment where you're going to get a meaningful rate of return. You know, the primary purpose of EB5 is to create US jobs and get investors their green card. And just as important, to protect and return your principal. So we do that by working with really high quality borrowers that qualify for low interest rates. So they pay low interest rate to, you know, the partnership that you would join, which we'll speak to in a moment, and you get a small distribution every year. But we're very upfront. After the deductions and then U.S. taxes, the realized rate of return is typically less than a quarter percent, which is almost nothing. You know, we can all put our money into a money market account here in the United states to get 4 or 5%. In India, you can put in what, a fixed deposit and get 7 or 8% risk free. You know, we get that. But obviously those investments also don't get you a green card. So. But again, just something you need to be aware of and be comfortable with just before you decide to proceed. And then ultimately, if you do decide that you're comfortable with those types of times, and, and EB5 is right for you. Obviously, I think, you know, you need to find a regional center, but I think the first thing that a family really should do is retain an immigration attorney. Because for most families, the biggest bottleneck in this process is waiting for your attorney to complete your source of funds. Absolutely. Speak to as many regional centers as you need to to find a partner you're comfortable with and a project that meets the criteria that you're looking for. What I commonly find is families will speak to a few groups, they'll look at a couple projects, and I think pretty quickly you'll have a good sense of what type of regional center you're comfortable working with and what type of project meets your criteria. And in most cases, you're simply waiting for your attorney to complete your source of funds. And also in some cases will take time just to get funds liquidly available. Whether it's, you know, selling assets you have here in the United States, investments, property, et cetera, bring money from overseas. That all takes time. And you don't want to move anything around until your attorneys looked at the documentation and, you know, making sure that you're doing it properly. So definitely retain an attorney, either a cash renewal or great. Or whoever you choose to work with. But if you decided, you know, whatever, that 70% turns to 100%, I would retain somebody right away.
BOkay.
DAnd then while you're looking, while they're working on your source of funds, that's when I think it makes the most sense to really do your deep dive into projects and evaluate what project you want to invest in. I don't think you should waste any time looking at projects until you have very reliable visibility that you're going to be in a position to make an EB5 investment in about a two to three month window.
BOkay.
DBecause you're going to be spending a lot of your resources on this process. A lot of your time, your energy, your emotion, and ultimately your financial resources. And what we especially have here at Can AM is our projects are not around for six months or nine months. Most of our projects this past year and a half are filled in about a month. Some have filled as quickly as 10 days. So just I never feel comfortable when a family starts to look at a project. They start, you know, putting their time into it, and then they find out their source of funds isn't going to be ready for a few more months. And they wasted X amount of hours or, you know, days looking at a project and it's, it's not even going to be available for them. So that's how I think you should think about it.
BOkay. Yeah. That's sound advice.
CGreat.
DAnd then when you are finally ready, your source of funds is done and you found a project that you like, the first step is to file the first application, the i526. First. You'll make your investment either a partial investment or a full investment, whatever you decide to do. But you need to be at least partially invested to file your i526E petition. And what we're submitting to the USCIS at this stage is really two primary pieces of documentation. Your source of funds documentation prepared by your attorney, and our project documentation. And that proves that the investment that you're making qualifies for EB5 immigration benefits. And that's all our responsibility. And since your family's here in the United States, you also will be doing the concurrent filing process, which allows you to apply for your work and travel authorization immediately.
BYep.
DSo you'll file all those applications together. Most commonly, our investors are getting their work authorization in about three to four months. So you get very meaningful benefits very quickly. And in some cases, the travel authorization, the advance parole, comes with the work authorization, what's called a combo card. But USCIS is very inconsistent, unfortunately. And sometimes that travel authorization comes a few months later. But in either case, you'll have both of those benefits, you know, within the first year, likely within the first eight months or less. And once you have those benefits, it's just like having a green card. You can work for any company you choose. You're no longer tethered to your H1B. You can start your own business. You don't have to work. You know, you really have all the benefits of a green card. And in the background, you're waiting for your i526 to actually be approved. And that has a range of possible outcomes. Some I would say a realistic and reasonable expectation to have is about 9 to 18 months for your i5 260 to be approved.
BOkay.
DWe do have some investors that have quicker, that get quicker approvals, especially in rural projects, you know, all regional centers, ourselves included. Always love to talk about our very fast approvals when someone gets approved in seven months or eight months. And that will happen for some investors, but there'll be many investors in the exact same projects that take 12 months and 15 months and 18 months or longer. So I always just like to set pretty modest expectations because I have to imagine you guys have already had some experiences with USCIS already. Certainly not a perfect organization. The program does work, but, you know, I would never feel comfortable asserting that seven months is your guaranteed timeline, because that's not realistic.
BOf course. But do you know, like, is there a reason why there's so much variance in, like, people who've invested around the same time in the same project?
DI. I wish I could tell you, but unfortunately, USCIS is just a black box. The only data point we get from them is that your, your receipt notice that verifies they've received your application and you're in the queue. And with their actual process for assigning cases to adjudicators and then caseworkers getting through all of their evidence applications is completely unknown, unfortunately.
BOkay.
DSo ultimately your i500, 260 will be approved. And let's, let's be in the middle. Let's say it takes about 15 or 16 months for your i5 260 to be approved. There's still one more step before you actually get your conditional green card. USCIS has to process your adjustment of status. The i485 that was filed at the beginning of the process with your i5 260 and your work and travel authorization. But USCIS doesn't begin processing it until after the i5 260 is approved. And similarly, there's a range of potential processing times. Some people get that adjustment of status done in two or three months. Some people get it done in five or six, sometimes longer. So between waiting for the approval of your i526E and then the adjustment of your status, most commonly it's going to be about two years before you actually have a green card in your hand. Again, sometimes people get through it very quickly. I have many investors that have green cards in their hands. In a year and a half. I just Never feel comfortable setting that as an expectation because I can't guarantee it. Once you get your conditional green card, it has all the rights and privileges of a permanent green card. The only condition is the time it's only valid for a two year period. And you're required to wait until the end of that two year period to file the next application. The i829 petition and what we're submitting to the US government at that stage is all the documentation that proves that your investment generated at least 10 full time jobs for US workers. And that's all our responsibility at the Regional center for your family. This is very much a passive investment and a passive process. You're doing your research and due diligence on us. The Regional center projects we have available. If you're comfortable with us as your partner and the projects we have, you make your investment and we do all the rest of the work. So we provide your attorney with all that document. Your attorney files the i829 on your behalf, similar to the i5260. You'll get a receipt notice very quickly that just acknowledges they've received your application and you're in the queue. But the second application historically takes about two to three years to be approved. When you file the i829 though, USCIS extends your conditional green card. So it started as a two year conditional green card, really gets extended to a four or five year conditional green card however long it's takes for that second application to be approved.
BI see.
DAnd I've actually very encouraged this past year I've had many investors who have gotten their i29 approved in under a year. Some as quickly as seven or eight months. And that's very encouraging. But again, we never set that as a baseline expectation because it's inconsistent and historically it's been closer to two to three years.
BSo question here. When? So during the i829 they also have to make sure you're still invested and also generating 10 jobs.
DThat's a very good question. So the EB5 program has a few requirements. One is that you have to lawfully document your source of funds. Two is that your investment needs to generate at least 10 full time jobs for US workers. And they also do require that your money maintains at risk for a certain period of time. That's a sustained period. Unfortunately, that definition of the sustainability is changing. Before 2022, the definition used to be was that your money must be at risk until you completed your two years of conditional residency and filed your I829, you didn't have to wait for the I829 to be approved, but your two years of conditional residency had to be completed. Then 2022, when they reauthorized the program, they changed that language to no longer require investors to have to redeploy because there are obviously visa caps in the, the EB5 category, like all visa categories. And there were backlogs, you know, going into 2019. So investors that had invested in a project that may have had a five or six year long term in some cases had to reinvest their money to maintain that at risk requirement. So USCIS changed that language to reduce that burden. But since that's happened in the past year and a half, group has filed a court case against USCIS alleging that they made those changes unlawfully. So they are possibly changing the definition of the sustainment period again. And that is kind of in flux at the moment. It could settle with the party that, you know, filed this court case and have some type of settlement agreement. USCIS could also go through a more formal rulemaking process where they can propose a new sustained period rule. Then they have to make it available too common for the public and then implement that new rule. And we're not sure how it's going to flush out yet. So I think realistically, I don't think they're going to go back to the old rule because the whole purpose was to, you know, not require you to have to reinvest your money. But no attorney, no regional center can clearly give anyone a firm definition of what the sustainment period will be, you know, this year or next year, I mean, until it's firmly disclosed by uscis. But in most cases, that sustainment period rule, whatever it ends up being, will most commonly be captured by the loan term for the project. So there's two timelines in this process. Your immigration timeline, which we just discussed, and then the investment timeline for the investment you're choosing. And that will vary by regional center and the structuring of the investment can am. We only do loan models because they're much safer than equity investments. And most of our loans are for a minimum of five to six years. And that five to six year loan term really should capture any interpretation of this assignment period. Again, I can't 100 guarantee it. You know, USCIS is what it is. But of all the proposals that we've seen, we think our loan term really would capture any interpretation of the sustainment period.
BGo ahead.
DGreat.
CYep.
DSo, yep. So all in, expect about six or seven years. It's very possible that you get through it quickly in about five years, but you know, no one can guarantee that. So I think have six or seven years is your baseline expectation. And if you get through quicker, you know, it's a win.
BGot it. And, and one, one, one more question. The. The you. You for naturalization. Does your five years begin as soon as you get a conditional green card or it does.
DWhen your conditional green card, all that time counts. So most of our investors, not you, don't have to apply for citizenship if you'd like to. Most of our investors are filing for citizenship either immediately or if you get through the EB5 process quickly, maybe you have to wait another year.
CMakes sense.
BYeah.
CGreat.
DSo now on to a little bit about who is can am. CAN AM has actually been working in immigration by investment for over 35 years. We actually first started working in Canadian immigration by investment in 1987. We raised a half a billion dollars in that program and we entered the US EB5 program in 2002. And EB5 has been our core business ever since for the last 23 years. And in those last few decades, we have gone on to work with over 7,000 families making EB5 investments from all over the world. We've sponsored 75 EB5 projects. And we have become the leading EB5 regional center in the only success metrics, which are one, getting close clients, their permanent green cards and to repaying their capital. So Can AM leads this industry in i829 approvals and permanent green cards issued to EB5 investors. And our projects have already repaid two and a half billion dollars back, which is not just the leader in the industry. It's very likely more than all the other regional centers combined. And I'm going to get very detailed and nuanced about our full track record in just the next few slides. Our firm is based in Manhattan, so if you folks that want to come into the office, we'd love to meet you in person. And I'm obviously happy to meet you for coffee or something in Jersey City as well, if you'd like. But we do have staff around the world and our firm is really broken down into a few divisions. The parent company or the top of the corporate umbrella is Can AM Enterprises. And that's the entity that manages all of our regional centers. And I always like to clarify that a regional center is really an authorization from USCIS that allows us to sponsor EB5 projects in certain parts of the country. So our first regional center authorization, for example, allowed us to sponsor projects that were located in Philadelphia, Pennsylvania. So many of can am's early projects were all based in Philadelphia. But as we've grown over the last few decades, we would continue to get additional authorizations in other parts of the country. And now we have the ability to have EB5 projects across 36 states. So we have projects all over the country and also in all different types of asset classes, because Can AM is not a developer. And that's a very important distinction to make because many of the regional centers in this industry are actually owned by the developers that they're lending your money to. And we, in most integration, that model is a pretty obvious conflict of interest. And that is not our business model. We act as an independent third party regional center. We do due diligence on developers and their projects. We want to make sure that projects will meet all the requirements of the EQ5 programs. You can be confident you'll get a green card. We also want to make sure the investments are safe and that the investors can be confident they'll get their capital repaid at the end of the investment term. And yes, we do provide construction loans to developers, but our primary responsibility is to the EB5 investor families we're working with. And if the developer that we're lending your money to ever deviated from our agreements and put either your immigration or your investment at risk, we can insert certainly would sue them to protect you. Regional centers that are owned by the developer they're lending your money to are never going to sue their parent company. There's an obvious conflict of interest there. So at the very least, be aware of those relationship dynamics when you speak with different groups. And since we are not owned by any developer, we've worked with many over the years and we've done all different types of projects over the years. We've provided construction loans for large commercial office buildings here in Manhattan. We've done all different types of residential projects, like, you know, condos, apartments, student housing. We actually did a student housing project in Jersey City and NJCU over on the west side of Jersey City. We've done all types of hospitality projects, hotels, resorts, convention centers, and we also do a lot of infrastructure projects in can am. We've built railroads, we've built ports, we've worked with utility companies and energy companies and Internet service providers. But every single one of these projects, whether it's a railroad in Florida or, you know, a hotel in Colorado, everything is managed here in New York. Every project has the same executive staff, the same legal team, same project due diligence team, the same client service team, all here based in New York and 85 Investments are also financial securities just like stocks or bonds or ETFs. So these transactions actually must be processed through income. A broker dealer, which is a business unit that is both registered and regulated by the financial regulators, FINRA and the sec. What most of the other regional center groups do though is find a much less expensive, a much less intrusive workaround. They find some third party vendor they work with that will process their broker dealer paperwork for them. And the regional center themselves are not directly regulated by FINRA and the sec. Can am, on the other hand, we were the very first regional center that opened April. Broker dealer within our firm. We did this over 11 years ago. We actually led the EB5 industry in securities compliance because we recognized this was the most legal and the most compliant way to do these investments. In fact, many of the other groups have actually been fined tens of millions of dollars by the SEC for not adhering to these securities regulations. So this is important. And what this really means for our investors is that Can AM has much higher compliance, regulatory and transparency we're requirements than everyone else in the industry. For example, you can look up our company, our CEO, me personally, the rest of our sales team, all on FINRA's website called Broker Check. You can see if there's any disclosure events, any negative marks against the company, against our staff. And that includes our time not just working here at can am, but also at any other bank or financial services firm we've ever worked at. For myself and many others of the team as decades of experience. So it really gives our clients a much closer look both at the company and also the people they're evaluating making such a large and such a personal investment with. That will not be the case in most of the groups. These are a few of our top executives at can am. The gentleman on the left is the president and the founder of our firm, Tom Rosenfeld. Tom came from an immigrant family as well. His family came to the US when he was a young boy and they settled in Pennsylvania. Tom is both a CPA and an attorney. He started his career at one of the big four accounting firms, PricewaterhouseCooper. He went on to get his law degree and then started getting involved in real estate transactions. And that's how he got involved in immigration by investment, first in Canada and then the US EB5 program in 2002. And Tom is not just the leader of our firm. But he is very widely known as one of the leaders of the entire EB5 industry for many reasons, but just to name a few, one is simply just the industry leading track record of success he's built over the years. No one has gotten as many investors their green cards and their capital are paid as Tom has. It's not even close. But Tom also changed the EP5 industry because before Tom entered the EP5 industry, all of these investments were structured as equity investments in projects, which is a much riskier position to be in a project budget. But Tom, given his experience in both the Canadian program and in real estate more broadly here in the United States, recognize there's very meaningful safety enhancements that come from being in a loan position, a debt position, and project budget. You sit above all the equity dollars. You have priority of repayment and priority of collateral protection. And it was Tom that had that loan model tested and ultimately approved by uscis, and that went on to become the industry standard. So he really made these investment safer for the whole industry. Now, as you're evaluating for regional centers, obviously it's certainly important to have an understanding of the regional center's experience and their track record. And there's going to be two components of any regional center's track record. Their immigration track record, how many of their clients have gotten their green cards, and the repayment track record, how much money have they actually repaid back from their projects? So starting with Can Am's immigration track record, there's going to be two important immigration milestones for any EV5 investor family. The first milestone is to get you your conditional green green card or your temporary green card. And that's always achieved by that first application being approved, the i500 2016 petition. And again at that stage, USCIS is looking at your source of funds and they're making sure that our project qualifies. And at this stage, Can AM now has almost 5,500 i526 approvals. One single petition includes the primary investor, their spouse if they're married, and any of their children under the age of 21. So our 5,500 approvals really represents over 16,000 conditional green cards issued to our investors and their family members. The next immigration milestone involves having your conditional green card made into a permanent green card. And that's going to be achieved by the second application being approved, the i829 petition. And what USCIS is evaluating at this stage is whether or not the investment that you made generated at least 10 full time jobs for US workers. And again, that's all our responsibility. And at this stage, we at Can AM now have almost 3,000 i829 approvals, which is number one in the industry. And that now represents over 9,000 permanent green cards issued to our investors and their family members. Again, number one among all regional centers. And the most common question I get from families at this stage is to explain, well, these are great statistics, but why is there a gap between the i29 approvals and the i526 approvals? It's a little more than half. What's, what's going on here? Why, why is that? And the answer is the processing time. For most families there's going to be a minimum of a four to five year gap between your I526 approval and your I829 approval. In many cases even longer. But at neither stage have we at Can AM ever had a petition denied due to anything project related. We have about 40 families total that have a denial at either one of these stages. But we, and every single one of those denials is due to something personal with the investor. We have no i526 denials related to the merits of our projects, and we have no i829 denials related to insufficient job creation, only investor personal reasons. And that is most commonly source of funds. And if you're working with a good attorney like either Rakesh or Nero, even those are very rare. The other thing that I'd like to point out here is as you are speaking with other regional centers, and you certainly should please be certain to ask all regional centers specifically about their number of petition approvals. I very commonly find another regional center center speak about their experience and their track record. Many of them only speak about the number of green cards and they do that very intentionally. My opinion to be a little bit deceiving because the green card number will naturally be a larger number because it includes the investor and their spouse and their children. So since it includes the whole family, it's a bigger number. It might sound impressive or compelling at surface level, but you must remember what USCIS is evaluating is your petition, not the green cards connected to it. So the petition numbers is much more important. And you'll find there are some groups out there that have some i526 approvals, but that's the easier part in the process. As long as your source of funds are clean and our business plan makes sense, that should be approved. But very few regional centers have any or any meaningful number of I829 approvals. And that's the harder part of the process, making sure that the projects were built, the jobs were created in accordance with USCIS request requirements, and the investor families actually got their permanent green cards. So focus on petition approvals, especially I829 approvals. And I know regional centers have anywhere close to the number that kns. And just as important, absolutely. Ask all regional centers about how much money they've actually repaid back from their projects. You're going to find a lot of regional centers will speak clearly about how much money they've raised. Very few will talk so clearly about how much money they've actually repaid back in their race projects, which is obviously so much more important. And Can AM has now repaid two and a half billion dollar back from our projects, which is not just the leader in the industry. It's, it's very likely more than everyone else combined. And please, I urge you, fact check me. Take a look at all the other regional centers you can find that post any information about their repayments on their websites. And again, not the raised capital, repaid capital. Add everyone together, it does not total $2 billion. So we're the leader by quite a large margin, which we're obviously very proud of. But we also understand for a new family, it's crucial to have a sense of confidence in these numbers. This is our first conversation here today. How do you know if this information is factual or verified? And we understand that concern. So at can am, we also take the additional step of having our track record audited every year by a global accounting firm. They do a full forensic audit to verify the i526 approval approvals, the i829 approvals and the repayments so that our investors can be confident that this is factual information and not just marketing material that we're pulling out of thin air. I mean, we certainly recognize $800,000 is a huge investment for any family. And it's also a very personal investment. This is your permanent green cards here in the United States. So having trust with the people you choose to work with is crucial. And that's why we have this audit done. And that's why we are always 100% transparent about our attractive record. From an immigration perspective, it is 100%. No petitions ever denied due to anything project related. And from a repayment perspective, we have now structured 75, 85 loans into different projects. Of those 75 loans, 53 have completed their full loan term, meaning the money was due to be repaid. Of those 5352 have repaid in full and on time. We do have one project from about 15 years ago that made a partial payment and every family in that project did get their permanent green card. And currently we do have one active project based in New York City that was initially stalled due to a contract dispute between the developer and the general contractor they were working with. And now those two entities have entered into litigation against each other. So the construction in that one particular project is not moving any further forward. But in that one project as well, we already have both i526 and i829 approval approvals. We continue to get those approvals. We have no project related denials. We have enough job creation for every family to get their permanent green cards. And they are getting their permanent green cards. And it's our job as their regional center partner to help maximize their return from the litigation. We've also joined across all of our projects that represents about 97% repayment history, extremely high industry leading. But ultimately every EB5 investor family in this industry must be comfortable knowing that to Qualify for an EB5 green card, you must make an at risk investment. It would be both illegal and unethical for any regional center or any developer to say that anything is 100% guaranteed. We do work very, very hard to make these investments very safe. We work with very high quality developers. We have lots of collateral and other financial protections to protect our loans. But like any investment, whether you're investing in stocks or bonds or in this case into physical development, development projects, there's always going to be certain inherent risks that are impossible to hedge out. And things do happen in the global economy. And we really have been through everything. We've been through the global financial crisis, been through natural disasters, we've been through the COVID 19 pandemic that shut down the world for a few years. And right now the whole world is going through a new US President Trump that's implementing tariffs and policies all over the world that certainly will impact businesses and investments in ways that nobody can 100%, 100% predicted in the future. So that's just the reality of investing. But how you minimize that risk is by working with a good regional center, working with a good developer and a strong project, and also working with partners that have both the experience and the resources to navigate difficulties with projects if they arise. And not only is can AM been through everything, but we are also still managing over one and a half billion dollars. And we spend a lot of our resources to fight for and Protect our clients. We will sue developers if we need to. CAN AM has even sued USCIS in the past and won. So we are very, very proud of our track record. It's absolutely second to none. And we're very happy to speak very openly and transparently about all of our projects.
BNice. Okay, thanks a lot. Still going?
CYeah.
DI have a few things.
BYeah, before like, before we like talk about the projects themselves, I just wanted to know like what kind of like RC fees are involved with canam? Like is there a fixed structure to the fee or per project or is it.
DI mean, how'd you folks find CAN am?
BI think just Internet resource. Like just looking at the most reputable firms. And.
DAre you working with any consultants or immigration agents that are kind of helping you evaluate EB5 and projects and etc?
BNot yet. Not yet.
COkay.
DWell, we work with many different types of consultants and many of our clients do work through some of these agencies and we're very open to that if you were. But we also work with many families without a consultant or an agent. Okay, so assuming that you're not working with a consultant or an agent, the typical admin fee is $80,000. But for families that have no third party and are working with us directly, we discount that heavily down to 20,000 and that's the lowest fee that we offer. There's not one family in any of our projects that pays less than $20,000.
BIs that because I didn't drop, but is that because the investor advisory section of you already own like a investor advisory section which is regulated by the SEC finra? You need, you need a broker dealer and that's being provided by CANAM itself.
DYeah, I mean all regional centers typically do charge an administrative fee. I certainly have heard in the market that there are some people that are discount heavily, maybe even down to zero. But I imagine, you know, obviously when you hear that at surface level, obviously look at the counterparty that's offering that. You know, I've heard of some regional centers that discount heavily, but they've also never gotten anybody a permanent green card or repaid any money. So they need to do things to incentivize investors to work with them. But yeah, we always charge an admin fee and we actually have to treat all of our direct investors equally because we don't offer different fees for different levels of service. So anybody that works with us directly gets changed, charge the same fee, everyone gets the same service and there is no further discount.
BI see. And does that change if we work with an investment advisor if you work.
DWith an investment advisor, it possibly could be higher because part of the way that these investment advisors get compensated is through that fee. They, they capture a piece of that fee.
BOkay.
DSo if you work with an advisor, and again, you know, I would not use that to deter you from working with the group. There are many out there and, you know, we work with many all the time and you can speak with them about the fee, but in many cases it could be more.
BOkay, got it.
CGreat. Yeah.
DJust a few last things, then we'll dive into a project. This is also not just can AM's historical track record. The EB5 program changed very meaningfully in 2 and 20,000, 2022 through a piece of legislation called the Reform and Integrity act that reauthorized the program. When the program was reauthorized, they made many changes to the program. They made a lot of new requirements of regional centers to operate in this industry. And they also made a lot of new benefits for new investors like concurrent filing and grandfathering to protect your immigration. And just since the program was reauthorized, we've had many projects Approved, hundreds of I526 and 929 approvals. And we just recently celebrated our most recent project repayment. That was actually here in New York. We had a large project base here in New York in Hudson Yards. We helped fund the new global headquarters of Pfizer, the pharmaceutical company here in the United States. And that project repaid us $250 million earlier this year. And I wish, I wish we spoke earlier. We actually hosted a celebration event at the, at the Office Tower in Hudson Yards this past Wednesday. And we invited a lot of the investors that are speaking, speaking with us currently so they would have an opportunity to speak with some of our old investors. So I could have invited you guys if you guys wanted to come, but we knew about that now. But that really pushed can am up to $2.5 billion of repaid capital. It was hundreds of additional investors who had their capital were paid. Really, really beautiful milestone for us at can am, and that just happened this year.
BNice.
DSo one last general process line and then I promise you, get onto a project. But just so you know, how we structure our investments at can am, they're all going to be structured in the same way. For every single project, we will form a new legal entity, a new limited partnership. It's very similar to a private equity investment. We at Can AM act as the general partner managing the investment. And the EB5 investor families are the limited Partners. And the partnership very simply is acting like a bank. The partnership you're investing in is providing a construction loan to a developer to build a very specific project, just like getting a loan from a bank. And generally speaking, the reason that developers are using EB5 loans in their project budgets are because our loans are less expensive than a bank loan. It's a financing tool. For every penny of EB5 they're able to raise, we're lowering their average cost of capital. So we work with very high quality developers, people that qualify for low interest loans from banks, and we offer them even cheaper interest rates for our piece of the project budget. We are never going to be all of the financing in the project. Obviously, every project will have some component of equity from the developer. Often they may have loans from other institutions as well, but we're going to be a piece of the project budget. And the developer is paying a low interest rate to the partnership every year. The partnership does make an annual interest distribution to the EB5 investors to the limited partners. But as I mentioned earlier, the realized rate of return is very low after the deductions and then US taxes is typically less than a quarter of a percent. So you get a small check every year. It's anywhere from a few hundred to a few thousand dollars a year at most. But then at the end of the loan term, the borrowers repay the principal amount back to the partnership, most commonly via refinancing, in some cases via a sale of the asset, but refinancing is much more common. And then we repay the EP5 investor families, like we're doing right now for that project in New York they just repaid.
BGo ahead.
DGreat. So I guess just to pause before I move on to the project so far, is everything clear? Is there anything else I can expand on?
BNo, I think you've been crystal clear. And yeah, very concise as well. I think, I think, yeah, we have a much better idea of like the whole process.
DAll right, great. Excellent. So now on to our current project. And have you folks know, after speaking with some attorneys, are you familiar with the two different categories of projects, rural and high employment projects?
CYeah.
DAnd are you looking at both categories? Are you focusing on one?
BI think rural makes more sense for us given that like it has more slots as well as processing times are slow, like faster for it.
DYeah, I, I, I have many investors that, that are looking at just rural. I also have many investors that if they're concurrent filing, they're looking at both. But in either case, this is a Rural project. So it's not an issue. So our current rural project is called Long Ridge Energy and Power. And what we're building is a power facility for data centers. And you folks both work in tech. I'm sure you're familiar with the need for data centers we have, not just here in the United States, but across the globe. There's going to be hundreds of billions of dollars of data centers built for the foreseeable future. And one of the big inputs that data centers need is power. And I'm sure we all hear Elon Musk talking every day about the power needs we need in the United States, the amount of electrons and electrical energy we need for these data centers. And that's what we're building. And we're working with a company called Longridge, which is actually a subsidiary of one of Can Am's long standing partners, the Fortress Investment Group. The Fortress Investment Group is a large asset manager. They manage about $50 billion of assets under management. And we've worked with them and their affiliates for over a decade. Our very first project working with Fortress was building the largest private railroad in the state of Florida. It's a railroad that goes from Orlando down to Miami. That project started in 2015 and repaid us in full in 2020. And that repayment was very meaningful for a number of reasons. One, it occurred in August of 2020, which was in the middle of the global pandemic when the world was shut down. And borrowers around the world and all different types of of industries had every opportunity to delay or default in their repayments. Fortress repaid us in full and on time. And the other meaningful part of that repayment was it was very large. It was $350 million, which was both the largest EB5 loan repayment at Can Am and in the entire EB5 industry's history. So that was a big milestone in the industry, not just at Can Am. Our next project, the Fortress, was building the Miami Central train station, which is a transit hub in downtown Miami. And that project repaid can AM another $130 million a few years later, in July of 2022. So Fortress has already repaid can AM $480 million. They're arguably the largest repair in the industry. And we've worked with many of their other affiliates over the years. And in the last five years, we've been doing several other projects with them, many of them in energy. So we did two EB5 raises for what's called a midstream oil facility in Texas called the Jefferson Terminal Midstream oil is essentially a technical way of saying a company that provides storage and transportation services to oil refiners. So this facility, the Jefferson Terminal, provides those services to people like ExxonMobil and Saudi Aramco. And we provided them with two EBD5 loans to expand that facility. All that construction is done, jobs are created. Many investors have their approvals already and those two raises repay in the next two years. We also recently done two raises for a hydrogen facility in Texas energy plant that produces hydrogen gas. That project is well underway and those loans mature in 2028. And just last year we did another project with Fortress, this specific subsidiary, Longridge, building a natural gas well in West Virginia. And that construction is ongoing. People are starting to get their approvals and that project repays in 2029. So we worked with Fortress quite a bit with many different types of projects and they've already repaid us $480 million historically. And our current project again is with their subsidiary in Longridge Energy and Power. Longridge is a subsidiary of the Fortress entity called Fortress Infrastructure, which is a publicly listed listed entity. FIP is their publicly listed ticker on the NASDAQ Exchange. And this Long Ridge subsidiary is almost a billion dollar company that really focuses on power generation. They have several assets around the country, but one of their primary assets is a large energy facility in Hannibal, Ohio. So what we're looking at here is an aerial photo of their property in Hannibal, Ohio. And off to the left, you're going to see a section of the aerial photo highlighted in light blue.
CBlue.
DAnd in that light blue section, they already have an existing 485 megawatt power plant. So that power plant is fully built, fully operational, and it provides power to an existing data center company called nara. Mara already has a large data center built there. If you look at the photos on the right, you can see that those are the racks where they have the servers. Lots of space for ventilation. So this is already built, this is already operational. They're already servicing that client. And now a few things are occurring at this site. MARA is expanding. They're going to be building additional data center units at this facility. So they're expanding their current data center, they're putting in more servers, so they have more data center capacity there. And then in addition to MERA, another large publicly listed company is doing two things at this site. They're buying 100 acres of land from Longridge and they're building a very large data center on that land. Be working with mer for the power for that data center. So to provide additional power to these clients. Merritt. Mer. Sorry. Longridge is building an expansion of this power facility. They're building a new 204 megawatt power plant at the exact same site.
BJust a question here, like, do we know, like, who the data center the client is, or is that Vera is.
DIs the client for the existing data center and the one in green? We do know. I just have not been authorized to disclose it yet because they're finalizing the land sale and their contract. I hope to disclose it by the end of the month.
BOkay.
DAnd certainly we'll, you know, we're not moving forward until all that is done, but, you know, we wouldn't be this far along if we had any doubts of that happening. So I will have that information hopefully for you folks soon, but I can't disclose it.
BI'm a little confused. Like, who, who, who the client has bought land from.
DFrom Long Ridge.
BFrom Long Ridge. And that. And. And is using Mara to build a data center there.
DNo, Mara already has their own data centers there.
BOkay.
DThey're expanding. They're building additional data centers. Another publicly listed company is purchasing this 100 acres of land in the green section of the map.
BYep.
DAnd they're. They're building their own data centers at the exact same site that are not related to me. They're completely independent.
BAnd so this new power is just for that new company, Right?
DWell, it's actually to supply power to the Mara expansion.
BOkay.
DAnd the new facility and the new tenant.
BOkay, okay. Both of those things.
DYes. And this power plant that Longridge owns and operates does two things. It generates electrical power from natural gas, so they produce their own. Own power, and they offer also service power from the grid. So they act both as a. A grid energy servicer, and they produce their own electrical power.
BGot it. Okay.
DAnd the new power facility is being built in the top right hand corner in the dark blue section.
BUnderstood.
DSo it's really just an expansion of this facility.
BAll right.
DAnd that's what we're funding. So that's what we're raising the EB5. You. No loan for. We're raising an EB5 loan for really three components of this new facility. A new 204 megawatt gas powered power plant. Also, all these data center clients want redundancies built in place because reliability is crucial for data center clients. You know, if your servers go down and you're out of operations, whether it be for an hour or for a day, your business is meaningfully disrupted. So all these data center clients, what they're really asking for or for these power facilities is to have redundancies built in place. So we are also building an additional 40 megawatt backup battery storage system to store additional electrical power. And again, both the current power plant and the new power plant are powered from natural gas. There's currently a very large natural gas pipeline that provides enough natural gas for both the current power plant and the new one. But just to have redundancies in place, we're also building a backup natural gas gas pipeline just to have redundancies in place, because that's what all these clients want. So that's what we're funding. We're funding these three components. The new power plant, the backup battery system, and the backup natural gas pipeline, that's what we're funding. All at this Hannibal, Ohio site where there's already a power plant already built and already a data center operating.
BGot it.
DThe full project budget for this project is $497.6 million. I'm not sure if you folks have already, you know, started looking at capital stacks and projects already. If you have, I'm sure you've seen there's going to be different types of financing involved in a project. There's going to be equity, which is cash from the developer. There's going to BE loans. Sometimes EB5 is structured as a loan, some regional center structure, EB5 investments as equity. We think that's way too risky. You know, you're the last person to get your money back if there's an issue. So. So we never do love equity. We only do the loan model. And even within the loan model, sometimes you can be junior debt. And there's a big bank ahead of you that has the most protection. And then you have protection above the equity dollars, but you're subordinated by the bank. And sometimes in EB5 you can actually be the senior lender. And in this project, that's the case. So there's a few things about this project which are going to be pretty glaringly different from other projects you're going to see in the industry. One is simply the amount of equity contribution. Longridge is investing almost $300 million of equity into this project, almost 60% of the project budget. That is a lot of equity. That gives anyone in a debt position a very, very secure position right off the bat. And the other major difference here is given our long standing relationship with Fortress, we are the senior lender for this project. There's not you know, bank of America or a Wells Fargo that has a 3,300 billion dollar loan ahead of us that has all the protection. We are the senior lender. We are the first to be repaid under any circumstance. And with that senior loan position, we also have a first lien on the collateral. Typically when there's collateral rights, the senior lender has the first lien and the mezzanine debt or the junior debt has a secondary lien behind the big bank.
BYep.
DSince we are the senior lender, we have a first lien on the collateral. The collateral includes the land and the new power plant. So we have a first lien and all the new assets. And then for additional protection beyond that, we also have what's called a corporate repayment guarantee. So often when you're looking at projects, in many cases, and I'm the first to admit, even for many can am projects, all of your protection is specifically in the asset that you're building. It's a lien on that asset or that land. And there's no protection up to the parent company, that's the owner and the developer and the operator. In this case, we have a corporate repayment guarantee from Longbridge, which owns the other power plant at the site. They own natural gas wells and other assets. They're expected to have about $160 million of EBITDA this year alone. And that parent company is also guaranteeing the repayment of our EB5 loan. So multiple levels of protection here. One, just sitting on top of a very meaningful amount of equity. That alone puts us in a very secure, secure position. Two, we are the senior lender. We're not subordinated by a bank or a private equity fund. We are the first to be repaid under any circumstance. Three, we have a first lien on the actual physical assets, the land and the new power plant. We are the first lien on those assets. And then four, we have the corporate repayment guarantee for Long Bridge.
BWhere does that corporate repayment guarantee come from? Like, do they supply some more collateral saying that we own these businesses here and that's what we would like?
DIt's, it's not necessarily. It's basically a corporate repayment guarantee from their balance sheet. So they have, you know, many businesses, they have, you know, many streams of revenue. Our repayment is not just going to be from necessarily the revenue from this one asset, the larger parent company that is.
CYeah.
DIs also guaranteed the repayment of the EB5 loan from their balance sheet.
BGot it. And can you also talk about, like, when like as the loan term ends, how do we expect to get paid back? And is it the same company that has bought the land that is going to like buy this power generation facility?
CNo.
DSo the power, the agreements that Longreach is going to have with those publicly listed companies that are building the data centers are power agreements. One is going to be an energy servicing agreement. So using power from the grids, applying it to one of the data centers, and what is going to be a power purchase agreement where they're going to be purchasing the power that they, they're generating. So they're purchasing power to be used to power their, their data centers.
BSo that is that the money that is getting repaid to the EB5.
DSo the repayment most commonly is going to be from refinancing. They could, technically speaking, if they wanted to use cash on hand to repay us our EB5 loans. So use revenue from their businesses to repay an EB5 loan. But what's much more common for operating businesses of any type, whether it's a power plant or whether it's an office building where you have corporate tenants leasing out floors of office space, or whether it's an apartment building where you have tenants living in the building and then renting out apartments, the most common way that construction projects are repaid is from refinancing. And what that means is after the actual asset is built and after it's been operating for a few years, they go to a traditional bank and they say, look, we have this fully constructed asset. This fully construction asset generates X amount of millions of dollars of recurring revenue every single year. We would like to apply for an operating loan, which is a longer term loan at a different rate. And they use the proceeds from that operating loan to repay their construction debt. Whether that construction debt is coming from a bank or private equity fund or private credit or a regional center. And that's the way that most construction debt is replaced, paid independent of EB5. Just for most types of developments, it's via refinancing.
BGot it. And like their main source of income to show to the bank for that refinancing will be the income that's generated via the power generation.
CRight.
DExit. Well from, from providing power to those data centers, either from the energy servicing agreement or the power generation agreement.
BOkay, got it.
DBut essentially a simple way to think that they generate revenue by providing power to data centers.
CYep.
BAnd that's how they're going to repay the loan. And is there, is that like, is the refinancing part of like the fact that they would refinance five to six years later. Part of like the contract the regional center signs as a partner.
DLike no, I mean there's not obviously going to be a guaranteed term that says exactly how they're going to repay us. You know, our job as your regional center partner is to do diligence on the developer and the business plan and make sure that we feel confident that they have ways to repay us, whether it be from refinancing or sale of the asset or other. So it's not going to strictly say in the legal agreement that this is guaranteed to be repaid via refinancing, but in practice that's the most common way.
BGot it.
CAnd.
BAnd they would like specify a loan term though, right? Like this is when we.
DLoan term, is this very, very specific. So in this case that's a perfect question. Part of the slide here, the loan term is a five year loan with a one year extension option. So any family participating in this project would just need to be comfortable knowing that your money will be invested for a minimum of five years, possibly up to six years. And we always like to be very clear that we do not control the extension options. The investors do not control the extension options. It's the developer. And the reason these extension options are really exist in these types of loan agreements is it gives the developers some flexibility as to when they want to refinance their construction debt. And that decision is going to be very much a financial decision which is in their best interest. And it's going to be based on data points that we don't control. And one of those data points that's very meaningful is what is the interest rate environment. You know, they'll look at what is the current interest rate market like five years from now and also what are the financial markets expectations of interest rates going into the sixth year. If they think that interest rates are going to be likely going up drastically in the sixth year, they would actually be very incentivized to refinance in year five because it's cheaper. But if they think interest rates could be flat or maybe even going down, they would be more incentivized to extend the loan because they'll get better refinancing in year six. And the interest rate environment is just one data point. There's other data points that we don't control, which are what are their liquidity needs at that point in time? Are they going to refinance this debt with any other debts at the corporate level? And many other data Points that it would be very disingenuous for me to say that I can predict into the future. So that's why we always just like to be very upfront. Could be a five year loan or it could be up to a six year loan. I have no meaningful way of giving you guidance of whether it'll be five or six. You just need to be comfortable with either five or six years for your max term.
BGot it. And does that also mean there is no way they repay us before four or five years? Because that is the loan term.
CLike, Correct.
BI mean if, like for some, in.
DSome projects we do have an early repayment clause. I do not believe we have an early repayment clause. So for example, one of our previous projects, it was a, a four year loan with a one year extension option, but they actually had a six month early repayment clause where they could repay us after three and a half years. I do not believe we have such a clause in this particular project, but I'll know soon. So the actual formal dead legal offering documents for this project haven't even been released yet.
BOkay.
DThey're going to be released probably by the end of the month. So obviously we're doing our best to get them out quickly because, you know, many investors are anxious to file. You know, once, you know, if you do decide to do EB5, you know, I think you're going to be, you know, naturally anxious just to get your application in. You know, if you decide you want to do this, the only meaningful data point you can control is your priority date. So you certainly are incentivized to get your application in as soon as you can. We have a lot of people that are already, you know, excited to proceed with the project and want to file and they're just waiting for the documents to be ready. So. But we hope to have those out by the end of the month. Then investors will start filing in this project in mid July.
BPerfect. And is that also when we would get to know the name of the.
DYeah, hopefully before it. Hopefully beforehand. But when the PPM is out, we should be able to disclose the name.
BOkay, perfect. Yeah, I think, I think I'm done with all my questions.
DYeah, I know we covered a lot today. Was helpful though.
BNo, it was really helpful. And I think you were like pretty. Yeah, I mean all the information was pretty dense and like really helpful.
AI think you did an excellent job. We really feel much more informed now than we did one hour ago.
DOh, thank you very much. I'm happy to hear it. And I Appreciate the time you spent with me. You know, obviously I know you guys are busy and probably take time out of your workday, so. Greatly appreciated. One thing I should also mention is since our firm is a broker dealer, before we can actually share the offering documents. So the offering documents for any project that you evaluate, don't make any decisions after a conversation like this, of course, make sure you get the legal documents, go through them in great detail, come back to the regional center with lots of questions, and that's when you would make a fully informed decision. And the offering documents are typically about 200 pages of documentation that include the full scope of the asset that we're building, all of the legal agreements between the regional center and the developer, and then all the legal agreements between the regional center and the EB5 investors. That's the limited partnership agreement. And since our firm is a broker dealer, we can't disclose those legal documents to an investor family until they first complete our investor questionnaire, which is a 10 page online questionnaire which asks some basic information about your investment, immigration history, about your investing experience, about your family circumstances. And we also do run a background check on the primary applicant's current passport, just to screen for anything that could impact your permanent immigration. Completing the questionnaire does not commit you to working with CAN AM in any way, shape or form. It simply allows us to share the offering document. So if you think that this project may be one that you would want to evaluate further, what I'll do is I'll send you the questionnaire after the call. Obviously you don't have to do it now because offering documents are not read yet. But if you think you would, I would encourage you to complete that and then we can add you to the queue to get the offering documents as soon as they're released.
BDefinitely. Yeah, count us in.
AYeah, sounds good.
DGreat. Have you guys decided who would be the primary applicant?
AI think that would be probably me, yeah.
DOkay, then only one of you needs to complete it. So Shan only need to complete the questionnaire then?
AYeah, that works.
BAll right, great.
DWe'll send that to you after the call with some other. Other just supplemental information to review. And once that's on file, then you'll be in the queue to get the offering. And in the interim, as additional questions pop up, don't hesitate to reach out. But beyond that, I would just encourage you to obviously continue your personal due diligence. And if you do ultimately decide that EB5 is right for you, I would definitely recommend start working with one of those attorneys sometime soon.
ASounds good.
BYeah. Thanks again.
DGreat. Well, great to meet you both. You get that email shortly and I hope to speak to you again soon.
AThank you. Thank you so much for your time today.
DYeah, my pleasure.
CBye. Bye.
DTake care.
COf sam.
BBut I feel like there's. There is little bit of conflict of interest, right?
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