Two years is the number every EB-5 investor fixates on when thinking about the return of capital. But is this timeline fact or fantasy? In this episode, Mona brings back guest Manuel Ortiz, Vice President of Global Business Development at First Pathway Partners to dissect the regulatory timeline from the real world timeline.
Manuel is put in the hot seat and does not sugarcoat reality. For most projects, two-year exits are rare; take it from someone with 13 years of experience in the industry. Most projects require 24 months to break ground, let alone stabilize. So, what is an honest timeline for return of capital? Manuel reveals the realistic timeframe and explains how rushing an exit could turn an EB-5 investment into a high-risk short-term loan in disguise.
The current debate around rural versus urban projects gets its time in the spotlight too, with Mona and Manuel looking at where the market is heading and what investors should keep in mind before committing capital. Their conclusion is clear. Whilst the two-year rule may be the law, a realistic return of capital usually depends on the project, the asset, the stage of construction and the strength of the exit plan
The insights shared on Global Investment Voice are for informational purposes only and do not constitute legal or investment advice. Please seek tailored legal, financial, or investment advice where needed.
“You don’t want investors getting mixed signals and overcorrecting, saying, ‘Well, now I should get it back in two years,’ because that creates a whole host of other issues.” – Manuel Ortiz
Manuel Ortiz
Manuel Ortiz serves as Vice President of Global Business Development. Ortiz has over 20 years of public and private sector finance experience in global and domestic markets.
Mr. Ortiz has led award-winning investor relations teams, directing capital raise efforts in excess of $500M with investors from over 40 countries. In recognition of his work in emerging markets, he earned a national industry award for bringing EB-5 services and educational resources to underserved countries around the globe. His rich expertise, communication with stakeholders, and cultural competency have earned the trust of global institutional investors, family offices, hedge funds, qualified individuals, and their intermediaries. He has also been featured in the media on Fox News, ABC and UniVision.
Prior to leading top awarded investor relations teams for private equity firms and EB-5 fund managers, Mr. Ortiz started his career as an analyst and underwriter conducting detailed valuations and due diligence for M&A acquisitions and financial analysis for commercial construction risks. He went on to become a public information officer and spokesperson, at the Port of Brownsville, working on economic development matters for the Port’s CEO and Senior Management.
Mr. Ortiz earned an MBA from the Cox School of Business at Southern Methodist University and a BBA at the University of Texas at Austin, with a minor in international business. He also holds a FINRA Series 7 license and is bilingual – fluent in Spanish and English.