What are the most important documents to review before an EB-5 investment?

You should retain an immigration lawyer and investment advisor to assist you with reviewing the documents from an immigration and business perspective. You will receive a subscriber package containing many documents for review, and we would recommend reviewing all documents received very carefully under the guidance of your hired professionals.

It is not likely that the regional center would change their basic documents for individual investors. These documents have been carefully scrutinized by experienced legal counsel and already submitted and they would not want to make a change that would be deemed material, as it would require a new filing. The most important document obviously would be the private placement memorandum, which contains the risk factors and a detailed description of the project.

Virtually all documents presented to you by the regional center, such as the PPM, due diligence report, and limited partnership agreement - just to name a few. Those documents will give you a picture of what is being offered to you and upon consultation with your attorney you can decide what is in your best interest.

You need to see all the offering documents, including the business plan, which includes the project information, developer information, job creation report, lending structure, etc. Usually regional center documents are standard form and are not changed for one investor.

Probably the private placement memorandum would be the first document to review as it will list the risks involved, then the partnership/operating agreement to know your rights and obligations. It will depend on the individual regional center as to how flexible they would be in changing documentation to suit you.

You must review the PPM carefully, and have it reviewed by due diligence specialists.

As a lawyer, we would have to tell you it is important that you and/or your attorney review everything before signing. If the terms are unacceptable and the regional center will not change them, you should look at another regional center - but again discuss any acceptable terms with your counsel to help you mitigate what you do not like.

There is no most important document - you should review all documents with your investment immigration attorney.

You will need to review offering documentation for a specific regional center project in which you intend to invest, specifically a private placement memorandum, a limited partnership agreement, a subscription agreement, and an escrow agreement. It is highly recommended you retain immigration counsel and conduct due diligence on a project before you commit to an EB-5 investment.

Read the PPM and have a U.S. attorney review that with you, along with any due diligence reports available on the offering. You need to understand where your money will go and who is looking after it. You will also need to see if the offering has retained skilled counsel, auditors and fund administrators. And if they have not, you need to ask why.

Every document is important.