US Freedom Capital Blog

The Preferred Partner Program For Immigration Attorneys

Posted by David Gunderson on Jan 25, 2015 6:58:00 PM

The Preferred Partner Program

US Freedom Capital affiliates with select professionals through its Preferred Partner Program. Recognizing the key role attorneys and other trusted advisors play in guiding their clients, USFC has created a program that rewards its best relationships while maintaining a gold standard for ethics, securities compliance and conflicts of interest. The Preferred Partner Program participants have been selected from among their peers for excellence in the EB-5 program.

USFC offers the investor a $5,000 rebate on the company’s administrative fees if the investor was introduced to USFC by a Preferred Partner attorney, invests in a USFC project, and has the Preferred Partner attorney handle the relevant immigration filings. The rebate is payable to the investor, but can be sent either directly to the investor, or to the attorney of record for transmittal to the investor. In that way, the rebate itself can then be used by the investor to pay other expenses associated with the EB-5 process, including legal fees.

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A Bad Idea

Posted by David Gunderson on Jan 15, 2015 9:32:00 AM

Some immigration attorneys have accepted, and continue to accept, finder/referral fees for placing EB-5 investors with projects. Let us set aside the issue of whether this practice is ethical, and presume, arguendo, that it is ethical. Let us also set aside the issue of whether this practice is lawful, and presume, arguendo, that it is lawful. Regardless, it is a lousy business idea for the following reasons.

When something goes wrong with one of the projects an attorney has placed a security for, the project fails, as is inevitable in a capitalist system - failure is a feature, not a bug, given enough time, some projects will always fail. Under long standing securities statutes and case law, rescission rights may well be triggered for the failed investment. The attorney who placed the security can be held liable to the investor for the $500K investment and be asked to cough up the entire amount to make the investor whole. Accepting a finder's fee by a person not licensed by SEC/FINRA is the same as underwriting insurance on the $500K investment. This is the same as writing a put option on the investment without being adequately compensated for it. Writting the multi-year protective put option on $500K for a mere $20K does not make any business sense (once again setting aside ethical/legal issues).

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EB-5 Regional Centers as Unlicensed Broker-Dealers

Posted by David Gunderson on Jan 13, 2015 9:50:00 AM

The Securities Exchange Act of 1934 (the "Act") was passed in the aftermath of the 1929 Wall Street Crash, where many investors discovered they had purchased worthless shares from fraudulent salesmen.

The Act defines a “broker” as “any person engaged in the business of effecting transactions in securities for the account of others.” A "dealer" performs the same function for their own securities. As they have the same requirements whether selling for themselves or others, they are referred to as "broker-dealers". Learn more about the details here.

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Report: Dallas / Fort Worth apartment rents reach all-time high in 2014

Posted by David Gunderson on Jan 5, 2015 8:02:00 PM

Dallas-Fort Worth apartment rents have hit an all-time record high in 2014, climbing 4.9 percent year-over-year, according to MPF Research, a division of RealPage Inc.

The record-high rents are bolstered by a 13-year peak in apartment occupancy in North Texas, with rents climbing 15.8 percent over the last four years.

"Annual increases above 4 percent are rare in this market," said MPF Research Vice President Greg Willett, in a prepared statement. "Because we're such a construction hot spot, the flow of new product moving through initial lease-up normally holds rent growth below the national norm."

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Home prices in Dallas rise 7.6%; outpace nation

Posted by David Gunderson on Jan 1, 2015 3:32:00 PM

Home prices in the Dallas area increased 7.6 percent year-over-year in October, outpacing the rise in national home prices.

The U.S. National Home Price Index — a 20-city composite — increased 4.6 percent in October year-over-year, marking a slight downturn as home prices rise at a slower pace.

Even though the rise of home prices has slowed, economists project 2014 will finish on a strong note and accelerate into 2015.

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