What Is Due Diligence And Why Is It Important For EB-5 Immigration?


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What Exactly Is Due Diligence When Referring To EB-5 Immigration?

There are three types of due diligence:

  • The first is the investor’s due diligence about the EB-5 project.
  • The second is the investor’s, what is also called immigration due diligence. In other words, questions about how the regional center has done regarding approved and denied applications.
  • The third is the investor’s due diligence of the regional center itself.

So, the first is about the project; the second is about the immigration consequences of applications that were previously filed by others; and the third is the due diligence about the regional center itself, meaning their regional center company and the principles of that company.

Why Is Due Diligence So Critical To Investors?

The reason Due Diligence is so critical is that there are really three major issues or considerations that investors have about their investment.

Number one is they want to make sure that this is a project that will ultimately lead to a permanent Green Card. What that means is there are two steps to getting a Green Card through EB-5. The first step is the initial petition, the I-526 where the investor shows they’ve made the investment, obviously picked the investment and prove their source of funds.

Then they get a 2-year conditional Green Card in about 12 to 24 months. If they are from China, it could be another year or two. Then once they have their 2-year Green Card, at the end of the 2 years, they apply for the I-829 removal of condition which takes another 15 months.

So, the bottom-line is it takes 5 to 6 years roughly for someone to get a permanent Green Card. When they entered the US, they received a temporary Green Card throughout the whole process, but their ultimate goal is to get a permanent Green Card.

That means they have to be comfortable that this project will be around in 6 years and will be viable and long-lasting. So, that’s a main reason why they would want to do a due diligence about the project and the regional center.

The second is that they want to make sure they’re going to get their money back. So, they want to get a Green Card, but they don’t want to spend $500,000 to get that Green Card.

In other words, yes, they want a Green Card, but totally equal to that, they want to make sure they have the best chance of getting their money back, and that is another reason why checking out a project in advance and the regional center are so important.

If you have need information regarding EB-5 Due Diligence, call the law office of Mark Ivener for a free initial consultation at (310) 477-3000 and get the information and legal answers you’re seeking.

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