Top Questions to Ask Before Investing in an EB-5 Project

Before committing $1,050,000 to an EB-5 investment, you must thoroughly vet the regional center and project. These 20 critical questions will help you evaluate whether the investment meets minimum safety standards.

1. What is your USCIS designation status?#

• How long have you been designated?
• What is your service area?
• When was your last re-designation?
• Has your designation ever been revoked or suspended?

A legitimate center will provide this information readily. Verify independently on the USCIS website.

2. What is your compliance history?#

• Have you ever faced SEC, state, or USCIS enforcement actions?
• Are there any outstanding regulatory investigations?
• Have you settled any violations or complaints?
• What is your track record with compliance reviews?

Request a compliance certificate. Any enforcement history should be thoroughly explained.

3. How many EB-5 projects have you completed?#

• How many projects have you completed since designation?
• How many are still operating?
• How many projects have failed?
• What happened to investor capital in failed projects?

Track record is critical. Ask to speak with previous investors about their experience.

4. What is your track record on I-829 approvals?#

• How many I-829 petitions have you filed?
• What is your approval rate?
• How long does I-829 processing typically take?
• Have any investors' green cards been revoked?

A strong regional center has a high I-829 approval rate with minimal denials.

5. Who are your key management personnel?#

• Who is the CEO or executive director?
• What are their relevant qualifications and experience?
• How long have they been involved with EB-5?
• Have they worked at other regional centers?

Experienced, qualified management suggests professional operation.

6. What are your administrative fees?#

• What is your annual administrative fee?
• Are there backend fees or performance-based fees?
• What specific services do these fees cover?
• Are fees disclosed in writing?

Transparent fee disclosure is important. Typical administrative fees range from 0.5% to 2% annually.

7. Can you provide investor references?#

• Can you provide contact information for 5-10 previous investors?
• Can we speak with them about their experience?
• Are they willing to discuss outcomes?
• Did they successfully obtain green cards?

Speaking with previous investors in person is invaluable due diligence. Legitimate centers encourage this.

8. What is the detailed project description?#

• What is the project and its purpose?
• Where is it located and why this location?
• Who is the developer and what is their track record?
• Has the developer completed similar projects successfully?

The developer's experience matters significantly. First-time developers are higher risk.

9. What is the market analysis for this project?#

• Who conducted the market study?
• What is the demand for this project type/location?
• What competition exists?
• Is the market analysis conducted by an independent firm?

Third-party market studies from reputable firms (CoStar, Hendrickson, etc.) are more credible than internal analyses.

10. How is investor capital protected?#

• Will capital be held in escrow?
• Who is the escrow agent?
• What are the conditions for capital release?
• If conditions aren't met, when is capital returned?

Capital protection via third-party escrow is essential. Specifics about release conditions matter.

11. What is the complete use of proceeds?#

• Exactly how will your $1.05M be used?
• What percentage for construction, equipment, working capital?
• What is the contingency reserve?
• What professional fees are included?

Complete transparency about use of proceeds is standard. Vague allocation is a red flag.

12. What are the financial projections and assumptions?#

• What are revenue and expense projections?
• What assumptions underlie these projections?
• How do projections compare to similar projects?
• Are sensitivity analyses included?

Conservative projections based on comparable projects are more credible.

13. What is the project financing structure?#

• How much is bank debt vs. equity?
• What are the bank loan terms?
• Is construction financing fully committed?
• What happens if permanent refinancing can't be obtained?

Strong project financing with committed loans reduces risk.

14. What is the exit strategy?#

• When is capital expected to be returned?
• Will exit be via refinancing, sale, or dividends?
• What conditions trigger exit?
• What happens if exit strategy can't be executed?

A clear exit strategy with realistic timeline is important for knowing when you'll recover capital.

15. How many jobs will be created?#

• How many direct jobs?
• How many indirect/induced jobs?
• What is the methodology for job calculation?
• How does this compare to industry norms?

Job creation calculation must be conservative and well-documented. Excessive indirect job projections are suspicious.

16. What is the timeline for job creation?#

• When will jobs be created?
• During construction phase, operations phase, or both?
• If jobs are temporary (construction), what permanent jobs result?
• How long must jobs be maintained?

For I-829 purposes, jobs must exist and be documented at filing. Most will be construction jobs during project building.

17. How will job creation be documented?#

• Who will track and document job creation?
• What records will be maintained?
• Who verifies job creation?
• How will job documentation be presented for I-829?

Clear job documentation procedures are essential for I-829 approval.

18. What happens if job creation targets aren't met?#

• What is the contingency plan?
• What recourse do investors have?
• Could petition denial occur?
• How likely is job creation success?

Understanding the risks and remedies for job creation shortfalls is critical.

19. What are ALL the risks?#

• What is the comprehensive risk disclosure?
• How are risks ranked by probability and impact?
• What could cause capital loss?
• What could cause petition denial?

Fewer than 10 material risks disclosed suggests incomplete disclosure.

20. Can I review all investment documents thoroughly?#

• Can I receive the complete PPM in advance?
• Can I retain an attorney to review documents?
• Can I have time to review before funding?
• Will you answer detailed questions about every section?

Never pressure to fund before complete review. Legitimate centers allow thorough due diligence.

Red Flags When Asking Questions#

Evasive answers:

• "I'll get back to you on that"
• "That's proprietary information"
• "Other investors don't ask those questions"

Pressure tactics:

• "This allocation is closing soon"
• "I can't reserve your spot much longer"
• "Other investors are committing this week"

Hostile responses:

• "Don't you trust us?"
• "That's an inappropriate question"
• "Successful investors don't ask that"

Vague or inconsistent answers:

• Answers that don't match the PPM
• Different answers to the same question
• Refusal to provide written answers

Week 1: Initial Due Diligence#

• Verify USCIS designation status
• Request and review PPM
• Request compliance documentation
• Request investor references

Week 2-3: Detailed Review#

• Review financial projections in detail
• Assess developer background and track record
• Speak with 3-5 previous investors
• Identify remaining questions

Week 4-5: Professional Review#

• Have EB-5 attorney review all documents
• Have accountant review financial projections
• Have real estate professional assess project
• Compile list of final questions

Week 6: Final Questions and Decision#

• Submit final questions in writing
• Request written responses to all questions
• Review regional center's complete written responses
• Make final decision to invest or pass

Week 7: Funding#

• Transfer capital to escrow account
• Execute subscription agreement
• Complete all I-526E documentation
• File petition

Taking 6-8 weeks for due diligence is appropriate and protective.

During due diligence, request in writing:

• Complete PPM and all exhibits
• Audited financial statements (if available)
• List of all projects completed (with outcomes)
• Compliance history documentation
• Developer's background and prior projects
• Third-party appraisals or market studies
• Loan agreements and financing terms
• Escrow agreement (template or final)
• Job creation methodology documentation
• Previous investor contact information

Frame Questions Clearly#

• Write questions in advance
• Number them sequentially
• Request written responses
• Specify deadline for responses

Avoid Loaded Questions#

• Instead of "How do I know you won't commit fraud?"
• Ask "What compliance measures protect against misuse of investor capital?"

Ask Follow-up Questions#

• Don't accept vague answers
• Keep asking "why" and "how"
• Request documentation supporting claims
• Verify independently when possible

Document Everything#

• Keep written record of all questions and answers
• Save copies of all communications
• Document any changes to representations
• Preserve documentation for I-829 filing

Walk away if:

• Regional center won't answer questions transparently
• Job creation assumptions seem excessive
• Project has minimal professional developer experience
• Escrow arrangements are inadequate
• Financial projections are unrealistic
• Compliance history includes enforcement actions
• Previous investors report negative experiences
• You don't feel confident about the project
• You're pressured to decide quickly

There are thousands of EB-5 projects. If something feels wrong, there are other options.

Thorough due diligence takes time and effort, but it's the best protection for your $1.05 million investment. These 20 questions cover the critical areas. Ask them, get detailed written answers, have professionals review the documents, and speak with previous investors.

A professional regional center welcomes due diligence and understands that thorough evaluation protects everyone—the regional center, the project, and your immigration case.

Don't compromise on due diligence to save time or follow pressure to commit quickly. Your $1.05 million and your green card depend on choosing the right regional center and project.