Why Do Due Diligence for EB-5 Investments?

If you have to ask that question, or have someone answer it for you, please, stay away from EB-5 investing. In fact, please, stay out of business altogether.

Nearly every time I read about the failure of an EB-5 project, the neglect of at least one party to exercise due diligence is inevitably at the root of the problem. The blame will fall on someone who is as guilty as homemade sin and, therefore, rightfully so. But the failure, regardless of what form it takes, is usually rooted in the initial failure of someone else to do their homework.

For many people, the desire to make a buck overrides any inclination they may have to ensure that every part of the process and everyone involved in it are legitimate. Unfortunately, there are others who prey on people who are too lazy or not meticulous enough to fully investigate all aspects of any projects. Even if there is nothing nefarious involved, the only practical way to avoid unintended and nasty consequences is to conduct a thorough due diligence. I cannot count the number of business that I have seen fail simply because the principals failed to fully investigate, double check and verify all the information about the project and the entities and individuals involved to ensure its accuracy and validity.

The extent to which one undertakes adequate due diligence is a predicator of the ultimate success or failure of any enterprise. Please, don’t be so foolish as to participate in any part of an EB-5 project without committing to conducting in-depth due diligence. It makes the rest of us look bad and it gives EB-5 a bad name – one that it does not deserve.

To learn more about the EB-5 investment visa program, contact Dr. Gregory Finkelson at American Corporate Services or call 415-682-2550.

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