Categories
Due diligence, EB-5 Immigration, EB-5 investment
Date
Nov 21, 2015
Share this article
Author
Kurt Reuss
Kurt Reuss
Kurt Reuss is a registered securities broker who has been specializing in EB-5 since 2012. He offers advice on investment structuring and market conditions related to EB-5 investments.

Related Articles

EB 5 projects due diligence checklist

Understanding the EB 5 Visa requirements is the first step of getting the green card by investment. Checkout EB5 Visa checklist for EB 5 immigrant visa.

Read MoreAug 15, 2019
Loan Administration Checklist

The Manager of the NCE (EB-5 investors) should consider the following loan administration checklist.

Read MoreMay 19, 2018
Inferring that EB-5 due diligence firms are not independent and their findings can be procured is a red-herring, designed to maintain the status quo.

CMB - Inferring that EB-5 due diligence firms are not independent and their findings can be procured by a regional center is a red-herring, to maintain the status quo.

Read MoreAug 31, 2016

Due Diligence Process - Investment Highlights

EB5 Diligence highlights twenty-three (23) deal terms in each due diligence report. Unfortunately, deal terms are what some people define as a due diligence checklist. As an example, earlier today I spoke with Reid Thomas (NES Financial) who’s currently in China and he told me that in speaking with local agents, he asked what they thought about due diligence. He said that from the agent’s point of view there seems to be three (3) major areas that due diligence covers.

1. Experience of the issuer and the EB5 regional center, and what deals they’ve previously completed.

2. The capital stack such as how much of the project financing will come from EB-5 investors and how much is coming from developer equity.

3. Conditions put in place to protect the EB5 investor, such as escrow conditions and collateral.

And when I talk about deal highlights included in our reports, I’m talking about some of the following:

  • The type of investment

  • The offering type; whether it is a Reg S or Reg D offering

  • The total project costs and the EB-5 portion

  • Are there any minimum raise requirements before the EB-5 investment will be accepted?

  • The investment amount / The admin fee?

  • The job cushion?

  • Is there escrow?

  • Are they using a broker-dealer?

  • Is there a fund administrator?

  • Is there independence between the manager and the JCE?

The highlights our EB5 project Diligence reports also delve further into the regional center and the issuer’s experience, such as how many deals they've done, how many i526 or i829 petitions they’ve had approved.

But what I want to emphasize is that there is quite a lot more to due diligence than the highlights!

Popular Articles

Answers to Common EB-5 Visa Investor Questions

The most frequently asked question about the EB-5 Visa program to get US green card by investment. Answered by the industry's top EB-5 experts.

Read MoreMay 22, 2023
EB-5 Green Card process: from investment to U.S. permanent residency

Learn about the entire EB-5 process from selecting an investment, to filing an I-526, to conditional permanent residency, to filing an I-829 and approval.

Read MoreMay 17, 2023
EB-5 Source of Funds Requirements & Best Practices

A lawful source & path of funds is critical for EB-5 Green Card success. Get expert insight on USCIS requirements & and the use of unsecured loans.

Read MoreMay 15, 2021
EB-5 I-526 petition requirements & recent processing times

Discover EB-5 I-526 petition requirements: cost, “at risk,” source of funds & job creation. Learn why 2021 processing times should improve significantly.


Read MoreMay 13, 2021
What 'Reg S' Means and What EB-5 Issuers and Investors Should Know

Learn about the Reg S meaning, flow back, liability and compliance, the benefits for EB-5 issuers, and the impact of failing to register when required.

Read MoreMay 05, 2021

Do you need further assistance
or have a question?