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Jay Peak EB-5 news

VTKilarney

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Jay peak has put their latest EB-5 project "on hold" for six months, which happens to be during the construction season.

http://www.wcax.com/story/25167761/jay-peak-eb-5-update

What do people think? Is it merely a "marketing" and permitting delay, or is there more trouble brewing?

While I have not been able to confirm this statement, in another forum (at britishexpats.com), a person who claims that they were a Phase 1 investor in 2007 has said that it will take 15 years to recoup their money. Several years of no payments, 9 years of payments in the amount of $21,500 and then a final balloon payment in the amount of $306,500. They claim that they will not receive anything other than their investment back. If this is true, what are the odds that Jay will be able to afford these balloon payments? The investor was initially led to believe that they would receive their money back in 5-7 years.

In the same forum, a Phase 2 investor says that an "exit strategy" has been "defined", but they have yet to be given a specific timeframe.

I understand the risk of EB-5 investing, but I'm more interested in what's going on at Jay Peak - and also at Burke. I'm curious to hear thoughts about this delay and the state of EB-5 at Jay/Burke in general.
 

BenedictGomez

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<--------- Predicted this (and worse).

It's not an "investment", regardless of the BS they tell you.

You're simply buying a Green Card and able to skip ahead of the "tired, poor, huddled, masses" because you have money.

But the real problems with EB-5 are currently unforeseen. These will occur in the unintended negative consequences that artificial manipulation with small, local, relatively closed economies will wreak....... you'll need to wait about 7 or 8 years, but you'll see.
 

BenedictGomez

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Care to explain?

There was a long discussion about this in another thread if you do an EB-5 search. Needless to say, my prediction ends poorly.

Short version: Most people simplistically think, "Gee, what could possibly be bad? It's "free money" and it's all from foreigners. This is great!" The reality is economics is far more complicated than that, the EB-5 numbers bandied about and promoted are largely fictional, and once the money dries up and the merry-go-round stops, the unintended negative consequences will be poor.
 

xlr8r

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The mention that only 25% of the Burke development is currently funded is more telling of issues IMO.
 

thetrailboss

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The video is telling. Things are "moving head nicely" with regards to design, concept, blah, blah, we're still fundraising....

The last part is what you need to know.
 

VTKilarney

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At the same time, the Wall Street Journal came out with an article saying that the Chinese are now becoming extremely picky about where to invest their money. They want to see real returns.
 

thetrailboss

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At the same time, the Wall Street Journal came out with an article saying that the Chinese are now becoming extremely picky about where to invest their money. They want to see real returns.

Hence why Bill said they are going to South America, etc.
 

thetrailboss

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As BG said folks are in it for buying a green card. That is what the expectation should be. The rest of it is a business investment that may or may not come to fruition.
 

VTKilarney

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As BG said folks are in it for buying a green card. That is what the expectation should be. The rest of it is a business investment that may or may not come to fruition.

Agreed that this is what the expectation should be. These are high risk investments, after all. But there has been a fundamental change. There is now much more competition for those EB-5 funds. And that alone has allowed investors to be more particular about where they wish to park their money.

Take a look at the Trapp Family Lodge. Their trip to China was a total bust. They could only scrape up $2 million out of a $20 million project. And the Trapp Lodge has a long history of operation under common ownership.
 

BenedictGomez

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What it really says is that the low-hanging fruit has already been devoured. They have to "work" now.
 

jaysunn

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DUDE, you live live in the NEK. Please stick to reporting on VT sugar production:

At the same time, the Wall Street Journal came out with an article saying that the Chinese are now becoming extremely picky about where to invest their money. They want to see real returns.

These aliens or whatever you want to call them are robbing locals of jobs. I'm drinking so my opinion does not matter, our algos, will kill the American Main Street folks. Just saying. PLease open a scottrade account. We love it, we love your cash / off topic but legit. O yeah, FUCK EB-5 projects !!!!

EDIT: Wall Street Trader here, yes I love Killington
 
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BenedictGomez

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DUDE, you live live in the NEK. Please stick to reporting on VT sugar production:



These aliens or whatever you want to call them are robbing locals of jobs. I'm drinking so my opinion does not matter, our algos, will kill the American Main Street folks. Just saying. PLease open a scottrade account. We love it, we love your cash / off topic but legit. O yeah, FUCK EB-5 projects !!!!

EDIT: Wall Street Trader here, yes I love Killington

1) Your first fallacy is assuming that jobs, real jobs, long-term jobs, are being created by EB-5 in the first place.
2) Do you really have to use the F-word in a high-percentage of your posts (or ever)?
 
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